National Strategic Planning for the Digital Economy: a Competitive Analysis on material of China and Russia

: At present, the wave of digital economy is sweeping the world. Countries all over the world are competing for the strategic commanding height in digital economy. In order to firmly seize this major historical opportunity and to transform and upgrade its economic structure faster, Russia keeps on strengthening the core capabilities of the digital economy such as information infrastructure, new generation information technology, ICT industry, human resources, information security, and digital environment supervision. Research purpose: a competitive analysis of the national strategic planning for the digital economies in China and Russia. Research objectives: 1) to provide definition for the digital economy; 2) to show the current improvement of the digital economy; 3) to study Russia’s digital economy; 4) to explore China’s digital economy. Research methodology: study of theoretical literature, data collection and analysis. Research results. “Strategy of the Information Society Development in the Russian Federation for 2017–2030” (2017) implies creating conditions for developing large companies in the information and communications technology industry in order to protect national interests in the digital economy. In 2021, Russia’s investment in the development of the digital economy reached the total of 4.094 trillion rubles. It represents an increase of 7.8 % compared to 2020 and amounts to 3.7 % of GDP. Over the past decade, China’s digital economy has made world-renowned development achievements. The overall scale has been the second best in the world for many years. The construction of information and communication networks is a global leader in terms of scope. The "Broadband China" strategy has been diligently implemented. The country has built the world’s largest fiber optic and mobile broadband network. The length of optical cable lines increased 2.7 times from 14.79 million km in 2012 to 54.81 million km in 2021. By June 2022, the total number of data center racks in China exceeded 5.9 million standard racks, and 153 national green data centers were built. Key core technologies have experienced breakthroughs. Investment in research and development of digital technologies is increasing every year. The level of digitalization in the service sector has increased significantly. The digital transformation of agriculture is making steady progress. In China, the deep implementation of the development strategy focused on innovation, promoting key technology research, accelerating the forging of long boards, making up for short boards, and building an independent and controlled industrial ecology.


CONCEPT DEFINITION AND STUDY OF RELEVANT LITERATURE 2.1. Defining digital economy
Digital economy, as an economic concept, is the identification, selection, filtering, storage, and utilization of big data (digital knowledge and information), guiding and realizing the rapid optimal allocation and regeneration of resources, and the realization of high-quality economic development.

Perfecting Digital Economy
In the digital economy, the continuous upgrading of network infrastructure and information tools, such as smart machines, Internet-cloud computing, blockchain, Internet of Things, and other information technologies, has continuously improved the ability of humans to process the quantity, quality, and speed of big data, and promoted the human economic form 1 .The transition of economy from an industrial type to an information / knowledge / smart type greatly reduces social transaction costs, improves the efficiency of resource allocation, increases the added value of products, enterprises and industries, promotes the rapid development of social productivity, and at the same time surpasses backward countries.The digital economy, also known as the intelligent economy, is the essential feature of Industry 4.0 or the post-industrial economy, and the core element of the information / knowledge / smart economy.In 2021, Russia's total investment in the development of the digital economy reached 4.094 trillion rubles, an increase of 7.8 % over 2020, accounting for 3.7 % of GDP.In 2020, Russia's total investment in the development of the digital economy reached 3.795 trillion rubles, accounting for 3.6 % of GDP (fig. 1).Among them, Russian households spent 1.641 trillion rubles on digital technology products and services (accounting for 1.5 % of GDP), and business spending reached 2.453 trillion rubles (accounting for 2.2 % of GDP, up 0.3 percentage points from the previous year) 7 .

NATIONAL STRATEGIC PLANNING
Expenditures are mainly used to purchase mechanical equipment applying digital technology (44.4 %), related software and installation (24.5 %), and electronic communication services (accounting for 18.7 %) 8 (fig.2).
In terms of the social coverage of the digital economy, in 2022, the Internet penetration rate of Russian households reached 76.9 %, an increase of 0.3 percentage points from the previous year, and the broadband penetration rate reached 73 % 9 .
It is necessary to regulate the ways for organizations to obtain personal data of individuals; to protect data imported into Russia; to implement a system of certification and licensing for goods and services, including goods or services provided through the Internet; within the framework of the Eurasian Economic Union, to determine the rules of access for goods and services of the foreign companies to the domestic markets of member states, and to protect the Russian and Eurasian economies.Special attention should be given to the following issues: integration of the digital economic space of the Economic Union; measures to restrict the use of the Internet for the provision of software, goods and services by foreign companies located in Russia and violating Russian law; the equal conditions for foreign companies providing services in Russia to establish representative offices or joint ventures; measures to protect the rights of Russian consumers using the Internet to purchase goods and remote services; receipt of complaints from Russian citizens and meeting the requirements of state authorities when foreign companies establish representative offices in Russia.Guarantees should be provided for establishing and operating them.
Companies that use servers or databases located in Russia to perform activities or process data must store relevant information; e-commerce transactions should use the Russian payment system.Digital infrastructure has achieved leapfrog development.The new infrastructure construction is planned and coordinated, and the construction of the intelligent comprehensive digital infrastructure is accelerated.The digital infrastructure is high-speed ubiquitous, space-ground integrated, cloud-network integrated, intelligent and agile, green and lowcarbon, safe and controllable.First, the construction of information and communication networks is a global leader in terms of scope.The "Broadband China" strategy has been implemented thoroughly.The country has built the world's largest fiber optic and mobile broadband network.The length of optical cable lines increased 2.7 times from 14.79 million km in 2012 to 54.81 million km in 2021 10 (fig.3).As of July 2022, the country's licensed 5G midband and low-band spectrum resources total 770 MHz.The total amount of licensed mid-band and low-band spectrum resources ranks among the top in the world.A total of 1.968 million 5G base stations have been built and deployed.The network infrastructure has been fully upgraded to IPv6, and the number of active IPv6 users has reached 697 million.The industrial Internet innovation and development strategy have been thoroughly implemented; the network, platform, security system, and industrial Internet logo analysis system have been basically established.Second, the capabilities of information and communication services have been greatly improved.My Country's mobile communication has made a leap from "3G breakthrough" to "4G synchronization" to "5G leadership", and the research on vision requirements, key technology research and development, and international exchanges and cooperation in the 6G field have been accelerated 11 .
The Internet penetration rate will increase from 42.1 % in 2012 to 73 % in 2021.The number of Internet users will reach 1.032 billion, and the total number of mobile phone users will reach 1.643 billion, of which 5G mobile phone users will reach 355 million, accounting for about a quarter of the world.For four consecutive years, the reduction of broadband and private line fees has been promoted for small and medium-sized enterprises, with a benefit of more than 700 billion yuan.Compared with 2012, the average download rate of broadband networks has increased nearly 40 times, and the average tariff per unit of mobile network traffic has decreased by more than 95 %.Third, the computing power infrastructure has reached the world's leading level 12 .
The national integrated big-data center system was basically established, and the implementation of the "East Data and Western Computation" project was accelerated (fig.4).
By June 2022, the total size of data center racks in My Country will exceed 5.9 million standard racks, and 153 national green data centers will be built.The power consumption efficiency of advanced green centers in the industry will drop to about 1.1, reaching the world's leading level 13 .Many new-generation national AI platforms have been created and made available to the public.The development of small and medium-sized enterprises with low-cost computing power services are supported.
The innovation capability of the digital industry is increasingly improving.The innovation-driven development strategy and advanced research of the key core technology are implemented thoroughly, speeding up forging of long boards, making up for short boards, and building an independent and controllable industrial ecology 14   have formed a number of independent underlying software and hardware platforms.The technological innovation ability of key products has been greatly improved, and the effect of large-scale application has begun to form.Second, the vitality of industrial innovation has been continuously improved.Industrial innovation capabilities have made breakthroughs 15 .
In 2021, the number of invention patents granted in the country's core digital economy industries will reach 276,000, accounting for 39.6 % of the number of invention patents granted by the whole society in the same period.Among the key digital technologies, the number of invention patents granted in the fields of artificial intelligence, Internet of Things, and quantum information ranks first in the world 16 .Finances continue to play a role in promoting the digital economy and reforming the share issuance registration system.From 2021 to June 2022, nearly 150 digital economy companies will complete their IPOs on the Main Board, the Science and Technology Innovation Board, and the Growth Enterprise Market, raising nearly 300 billion yuan 17 .There is further expansion of medium and long-term lending to the digital economy industry.By the end of June 2022, the balance of medium and long-term loans for the computer, communication and other electronic equipment manufacturing industry will be 1.48 trillion yuan.Third, the digital industry is growing rapidly.The digital transformation of the industry is accelerated.The "cloud use of data to empower intelligence" in enterprises are deeply promoted; industrial Internet, digital commerce, and smart agriculture are increasingly developed; and the transformation and upgrading of traditional industries are supported in an all-round and full-chain manner.First, the digital transformation of the manufacturing industry continues to progress.Digital integration and industrialization are well under way and becoming more practical, and the application of digital technology in enterprises has been significantly improved 18 .
Xu & Liang noted that the intelligent manufacturing project has been implemented in depth 19 .Through intelligent transformation, the production efficiency of 110 intelligent manufacturing demonstration factories has increased by an average of 32 %, the comprehensive utilization rate of resources has increased by an average of 22 %, the product development cycle has been shortened by an average of 28 %, and the operating costs have been reduced by an average of 19 %.The non-performing rate fell by an average of 24 % 20 .
Second, the digitalization level of the service industry has improved significantly.The size of the national online retail market has ranked first in the world for nine consecutive years, growing from 1.31 trillion yuan in 2012 to 13.1 trillion yuan in 2021, with an average annual growth rate of 29.15 %.In recent years, the country's e-commerce transaction volume has maintained rapid growth, from 8 trillion yuan in 2012 to 42.3 trillion yuan in 2021, with an average annual growth rate of 20.3 % 21 .
The scale of e-commerce and mobile payments leads the world, and the market sector of online car-hailing, online food delivery, digital culture, and smart tourism continues to expand.Third, the digital transformation of agriculture is making steady progress.In 2021, the comprehensive mechanization rate of crop farming and harvesting will https://doi.org/10.21603/2782-2435-2023-3-3-298-307   Novikova IV. et al.National Strategic Planning...   exceed 72 %, and more than 600,000 sets of Beidou terminals will be used in agricultural machinery 22 .
New smart agricultural models such as product 22

3. 2
China's digital economy Since the 18 th National Congress of the Communist Party of China, China has been implementing the strategy of strengthening the country through the Internet and the national big data strategy.Industrial digitization promotes the vigorous development of the digital economy.Over the past decade, China's digital economy has made world-renowned development achievements.The overall scale has ranked second in the world for many years, and its leading and supporting role in economic and social development has become increasingly prominent.