In 2017, the Internet industry in China formally bid farewell to the rapid growth of the past few years and completed the transition from an incremental market to an inventory market, embracing a new stage of development.

Recently, the IDC released the“Perspectives on Top Ten Trends for China Internet Industry in 2018”, in which the IDC predicted the developing trends of Chinese Internet industry in 2018 and in the next three years,covering the macro-environment, hot market issues, user demand, products and technologies. Xue Yu, a senior analyst from the IDC China of Internet industry, said: “In 2018, Internet-based industries in China will start to grow intensively, and it will become more important to vitalize these existing users than to attract new ones. The commercialization and scale development of artificial intelligence, block chain,Internet of things and other emerging technologies is expected to bring great potential, strengthen the ties between new technologies and the business,stimulating more new business formats to come. In the new stage, Internet companies should attach more importance to the development and application of emerging technologies, to gain first-mover advantage.”

Forecasts by the IDC for China Internet industry in 2018 are as follows:

Forecast 1: The trend of the digital economy

By 2021, up to 45% of Chinese Internet companies will cooperate with traditional industries to promote the development of digital economy.

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The ties between Internet industries and artificial intelligence are quite close,as enterprises generally believe that artificial intelligence represents the trend for next era after PC Internet and mobile Internet. And now these Internet giants like BAT are active in artificial intelligence market, in hope of getting a better position in the emerging future.

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Forecast 2: The influence of China’s Belt and Road Initiative

By 2020, 30% of Chinese mobile Internet companies will deploy in overseas markets, especially the countries and regions participating the Belt and Road initiatives.

So far, the greatest threat to the development of digital economy has been the constant erosion of trust, especially with increasing vulnerabilities in cyber security. Significantly strengthening digital trust is the number one priority for the digital economy. As IDC expects, the era of block chain will rebuild digital trust, putting an stimulus to the development of IT industry and even the entire digital economy.

The rapid development of Internet industries makes China a world leader in terms of Internet penetration rate, business models, technological strength and capital accumulation. Therefore, exports of technologies, products and business models now has become a new choice for some mobile Internet companies.

Forecast 3: Platform ecosystem

By 2021, nearly half of Internet digital services will come from the open API Ecosystem.

By 2020, more than 90% of Internet products or services in China will be integrated with artificial intelligence capabilities.

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Forecast 4: Cloud computing 2.0

By 2021, the spending on cloud computing services by Chinese Internet companies will reach nearly USD 3.5 billion.

In the past few years, various clouds gained popularity among Chinese Internet companies, with many now adopting a strategy of “cloud first” or even “cloud only”. As the implementation of “Internet+” strategy and the wave of “mass entrepreneurship and innovation”, a great many of innovative Internet companies develop products and services and operate on cloud platforms.

Forecast 5: Popular artificial intelligence

The competition among Internet industries in China now has escalated into competition among the ecosystems,meaning the platform being the core targets for innovation, development and markets. The great network effect will continue to enhance and exert influence on the world.

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In China, digital transformation will be the core driving force for future economic development. IDC believes,as one of the most important national strategies during the 13th Five-Year Plan period, China will speed up the implementation of “Internet+” policies.As the demographic dividend is decreasing, more Internet companies will turn to traditional industries to seek for opportunities in integrating Internet technologies with traditional industries,to innovate their businesses and benefit from the digital economy.

Forecast 6: Piloting in block chain

By the end of 2018, over 50% of Chinese large Internet companies will carry out pilot block chain projects.

By 2019, more eight out of ten Chinese e-commerce enterprises will develop an architecture of user experience supported by artificial intelligence,marking an increase of 30% in the conversion rate, and boosting the online retail sales in China to USD 1.6 trillion.

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Forecast 7: Fiercer competition in new retail markets

By 2021, more than 30% of Internet companies in China will take mass applied block chain services as the foundation of digital trust.

At the end of 2016, the concept of new retail was put forward, and 2017 witnessed many Chinese Internet companies entering new retail market. In addition to the two giants of Ali and JD who are deeply involved in entity retail industry, Tencent started new retail business through buying in shares of Yonghui Superstore and aligning with JD and VIP shop, while many others like YAN XUAN, Miss Fresh, Xingbianli and BingoBox started in different ways by featuring quality, freshness or 24-hour unmanned services.

Forecast 8: A booming sharing economy

By 2019, the sharing economy in China will maintain a high growth rate of over 50%, with the market size of riding sharing up to USD 67 billion.

2.3 盆底肌力和电生理对比 研究组治疗后盆底肌力大于对照组(P<0.05)，盆底Ⅰ类肌纤维肌电压、盆底Ⅱ类肌纤维肌电压、盆底Ⅰ类肌纤维疲劳度均高于对照组(P<0.05)，盆底Ⅱ类肌纤维疲劳度与对照组比较，差异无统计学意义(P>0.05)。见表4。

In 2017, Chinese sharing economy developed at a high speed, and came into being a lot of new business models and modes, pushing the digital transformation in society, industries, enterprises and consumers.

Forecast 9: Upgrades in video content

By 2019, it is expected that more than half of the online video content will be homemade by the Chinese Internet video industry, and the ratio of highquality content will rise remarkably.

As the trend of pan-entertainment deepens, the competition among online video platforms is shifting to IP (Intellectual Property), and the corresponding costs are getting higher and higher.Cutting such costs with home-made content and improving profitability now have become the common choice for major video platforms.

Forecast 10: The integration of mobile payment methods

By 2019, more than 70% of the existing players in independent mobile payment market will change their status, and through competition, mergers and acquisitions, mobile payment service providers will be integrated into a comprehensive financial services ecosystem.

The mobile payment system in China has been successful, as it not only provides consumer with much simpler,cheaper and more convenient payment methods, but also can be integrated into a larger ecosystem, which in turn attracts more consumers and enterprises to form platform-based Internet ecosystems through mobile payment, greatly improving the vitality and competitiveness of payment enterprises.

In 2018, Internetbased industries in China will start to grow intensively, and it will become more important to vitalize these existing users than to attract new ones.