China's domestic consumption is expected to be triple that of the U.S. by 2030, driven by data technology and cloud computing, Jack Ma Yun, executive chairman of e-commerce giant Alibaba Group Holding, said on Wednesday.
During a computing conference held by Alibaba's cloud computing arm Aliyun in Hangzhou, East China's Zhejiang Province, Ma noted that the Internet and cloud computing can help Chinese entrepreneurs explore the new consumption demand of the nation's middle class, which will have 500 million individuals by 2030.
As one of the three drivers of China's economic growth, consumption still appears weak, at least as reflected by the latest trade data. The General Administration of Customs said on Tuesday that exports in September fell 1.1 percent year-on-year, while imports tumbled 17.7 percent.
In the era of data technology, access to information and the use of cloud computing will drive productivity and support domestic consumption growth, Ma was quoted as saying in a press release sent to the Global Times on Wednesday.
Alibaba has shown its determination to develop its computing business. In March, the company announced the opening of its first overseas data center in the U.S. to focus on global clients.
The company has been putting money into the sector for six years. That investment has paid off, with Aliyun achieving a 106 percent increase in revenue to 485 million yuan ($76.4 million) in the quarter through June.
Alibaba is not the only company that is betting on cloud computing. Rival Tencent Holdings plans to invest 2 billion yuan each year in cloud services over the next five years, according to media reports. And leading telecommunications equipment maker Huawei Technologies Co announced the launch of its public cloud service in July.
"Without doubt, cloud computing is a key and fundamental part of the technical foundation for the nation's plans to build up smart cities and develop the Internet of Things. These plans are attracting many domestic and foreign companies in China to enter the sector," Xiang Ligang, CEO of telecom information portal cctime.com, told the Global Times on Wednesday.
Despite the active corporate push, cloud services still have a way to go in China before they take off, said Xiang.
A report by U.S.-based market consultancy International Data Corp in August said that China's public cloud service market expanded 61.9 percent year-on-year to $902.8 million in 2014, but that was only equivalent to less than 3 percent of the U.S. market.
"There are many players - Internet companies, telecom carriers and telecom equipment makers - in China's cloud computing industry, and each has its own advantages," said Xiang, noting that these companies should work together to ensure the industry's sound development.
