ECONOMIC DEVELOPMENT IN THE CONTEXT OF DIGITALIZATION – CASE STUDY: DIGITAL ECONOMY FRAMEWORK IN CHINA

The digital revolution has fundamentally reshaped global economic structures, driving a transition from traditional labor - and capital-intensive systems toward knowledge -, data -, and technology - driven models. This article examines how digital transformation, through artificial intelligence (AI), blockchain technology (BT), and big data (BD) analytics, reconfigures economic mechanisms at both micro- and macroeconomic levels. By analyzing their impacts on productivity, investment strategies, labor markets, and regulatory frameworks, we highlight the emergence of new patterns such as regionalization, sustainability-driven growth, and decentralized economic systems. A special focus is placed on China’s digital economy framework, which demonstrates the role of state-led policies, technological innovation, and private sector dynamism in shaping one of the world’s most advanced digital ecosystems. Findings indicate that digital transformation not only enhances efficiency and inclusion but also raises challenges related to privacy, inequality, and regulatory scrutiny. The study contributes to the field of core economics by linking digital technologies to evolving economic models, offering insights into how nations can leverage digital infrastructures to foster competitiveness, resilience, and sustainable growth.