The development of the digital economy is essential for enhancing common welfare. Digital transformation has become an important way to foster technological innovation in enterprises, which is of great significance in promoting the high-quality development of China’s economy. This article analyses the impact and challenges of digital economy on China’s public policy, and explains the support mechanism for the development of digital economy. At the current stage of development of Jiangsu Province, the problem of finding solutions aimed at intensifying the processes of scientific and technological development in order to strengthen technological sovereignty and ensure global competitiveness based on innovation is becoming highly relevant. In this regard, the description of China’s public policy instruments that ensure the greatest progress in the digitalization of the country, regions and companies is an urgent task. It is especially important to raise the issue at the level of individual provinces that are actively integrating into the new scientific and technological agenda. This is particularly important in the context of de-globalization, which increases the pressure on the sustainable development of both the national economy of China and its regions. The research uses the case study of Jiangsu Province listed companies in China from 2007 to 2022 to analyze and evaluate the incentive effects of PRC government policies on digitalization. The results show that digital transformation can promote technological innovation by optimizing the allocation of innovation factors and reducing enterprise costs, and government subsidies have a significant positive moderating effect on digital transformation to promote technological innovation. The results can be used in the planning and implementation of government programs in the field of digitalization of the economy.

digital economy, digital transformation, government support, R&D, high quality development, government subsidies, government policies, economic growth, China, Jiangsu Province

Zhang Xinyi. China’s government policy on digital economy with the example of Jiangsu Province: a review. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2024;2(67):46—53. DOI: 10.25683/VOLBI.2024.67.948.