The economic slowdown and regulatory crackdown have caused the revenue of China's Internet industry to shrink for the first time.

(Reuters)

[Compiled by Wei Guojin/Taipei Report] China’s economic slowdown, together with Alibaba, Tencent and other technology giants due to regulatory suppression, the growth momentum has subsided, resulting in a 1.1% annual decrease in the total revenue of Chinese Internet companies in 2022 to 1.46 trillion yuan, which is 2017. This is the first decline since then, which is in sharp contrast to the double-digit growth in each of the previous six years. It also shows that the "high growth" situation of Chinese Internet companies has rapidly declined.

According to data from the Ministry of Industry and Information Technology of China, the total revenue of online car-hailing and online services such as tourism, finance, and housing rentals fell by 17.5% last year, the worst hit, followed by e-commerce, medical supply and delivery services, which fell by 12.6%.

The total revenue of information service companies including news, information, search, social networking, games, music and video, etc. increased by 4.9% year-on-year.

The Ministry of Industry and Information Technology's data covers Internet service companies with an annual revenue of more than 20 million yuan.

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Last year, China’s economy faced headwinds such as supply chain disruptions related to the epidemic, the effects of the Ukrainian-Russian war, and the real estate market slump. Last year, its economy grew by 3% annually. In contrast, in 2021, it will reach as high as 8%.

At the same time, the once-vibrant Internet industry has been under severe regulatory pressure, and relevant regulatory measures have only recently been loosened.

The South China Morning Post reported that China's Ministry of Industry and Information Technology has stopped releasing key data that helps assess the situation of China's Internet industry, that is, the number of Chinese apps.

According to the previous annual report of the Ministry of Industry and Information Technology, the number of APPs in China will drop from 3.45 million at the end of 2020 to 2.52 million in 2021, and 3.67 million at the end of 2019.

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