Abstract: Digital technology is an instrument and vehicle for digital empowerment and the
development of the digital economy. Digital applications in the service sector have
spawned new business modes over recent years such as industrial internet platforms,
new retail and online education, which have contributed to China’s service sector growth
and transition. With the help of digital technology, the service sector has maintained
rapid growth, improved in terms of structure, quality and efficiency, increased public
welfare,and enhanced indigenous innovation. In light of inadequate and uneven progress
of digitalization and insufficient factor support and government incentives, we suggest
that the government further advance digitalization development across the board, bolster
factor support, and enhance policymaking.