Chapter 3 Development of internet applications

In the first half of 2025, the internet, big data and artificial intelligence became more deeply integrated with the real economy. Applications expanded across digital tools, digital consumption, digital culture and entertainment, and digital services. New business models and application scenarios continued to emerge, providing fresh momentum for high-quality development.

1 Overall development

In the first half of 2025, the use of different internet applications in China continued to deepen and user numbers continued to grow. Short videos, online games and instant messaging recorded particularly large increases, adding 28.43 million, 26.92 million and 11.27 million users respectively compared with December 2024.

Table 4 Internet application users and usage rates

2 Digital tool applications

Instant messaging

As at June 2025, China had 1.093 billion instant messaging users, an increase of 11.27 million compared with December 2024, accounting for 97.3% of all internet users.

In the first half of 2025, the instant messaging industry continued to develop intelligent capabilities and introduce new online workplace applications, improving both user engagement and commercial efficiency.

First, instant messaging tools continued to become more intelligent, improving the user experience. Tencent strengthened the use of artificial intelligence tools to upgrade services in WeChat and other instant messaging applications. In the first quarter of 2025, Tencent rolled out AI agents across WeChat and QQ, providing intelligent chat assistants, content-generation tools, e-commerce recommendation systems and other intelligent services,⁴⁵ continually improving the user experience.

Second, online workplace applications accelerated their adoption of intelligent capabilities, improving their commercial performance. Providers generated commercial returns by upgrading AI workplace services. DingTalk completed an AI product upgrade based on large language models, helping enterprises improve efficiency through real-time communications and office automation. By March 2025, DingTalk's average number of paying weekly active users had reached 42 million.⁴⁶ Tencent Meeting offered AI-powered real-time transcription, recording and automatic summaries. Its monthly active users doubled year on year to 15 million. Increased use by enterprise customers helped Tencent Meeting's revenue grow by more than 40% year on year.⁴⁷

Search engines

As at June 2025, China had 777 million search engine users, accounting for 69.2% of all internet users.

In the first half of 2025, artificial intelligence drove search services towards more advanced multimodal and context-specific applications, supporting the industry's continuing shift towards intelligent services.

First, stronger AI capabilities improved search effectiveness. WeChat Search improved click-through rates by optimising AI services. Search results powered by its own models covered more than 90% of search queries.⁴⁸ In the first quarter of the 2025 financial year, WeChat Search revenue grew rapidly year on year.⁴⁹ AI functions in the Baidu Search app reached almost 70% of its monthly active users.⁵⁰ As at March 2025, the Baidu app had 724 million monthly active users, up 7% year on year.⁵¹

Second, deeper integration of AI into search scenarios improved users' experiences. 360 Search launched an AI multimodal engine supporting combined voice, image and video searches, improving the efficiency of responses to complex queries. It received more than one million visits on its first day of official operation.⁵² Xiaohongshu introduced the search product Diandian AI, offering a more intelligent search experience. Through the @ function, users could readily interact with multiple agents covering health, law, education, finance and other fields, making information retrieval more personalised and precise. Weibo's AI search product, Weibo Smart Search, developed rapidly: monthly active users increased by 300% month on month in March.⁵³ It provided convenient ways to understand trending events and obtain interest-based and specialist information. Examples included reconstructing the background to China–US tariff negotiations in one click and launching a university entrance examination edition to provide candidates with professional reference information when selecting their university preferences.

Social networking

As at June 2025, China had 1.107 billion social networking users, an increase of 5.86 million compared with December 2024, accounting for 98.6% of all internet users.

Obtaining information was the main purpose for which internet users used social networks. Data showed that, on social networking platforms, 55.0% of internet users mainly followed general social news, 39.3% mainly followed information on elderly care, employment and education, approximately 33% mainly followed the latest policies and regulations and information on technology, business and sport, and 31.4% followed news from overseas. WeChat, Douyin, Kuaishou, QQ and Xiaohongshu were among the social platforms frequently used. WeChat was the most widely used, with a usage rate of 94.3%. In the integration of social networking and news, Sina News launched the AI-assisted tool Smart Xiaolang. Drawing on authoritative content and real-time data published by media organisations and influential users on Weibo, it provided analysis of current topics and an efficient, precise news-reading experience.

Social networking platforms created new opportunities for global cultural exchange. In January, many overseas users joined Chinese social platforms. Xiaohongshu, with its focus on sharing everyday experiences, attracted large numbers of international users, particularly from Europe and North America. In response to this influx, it introduced one-click translation to overcome language barriers and make international exchanges easier. International users shared authentic everyday experiences on Xiaohongshu and similar platforms, while Chinese users interacted with them through comments, creating a two-way space for cross-cultural exchange.

3 Digital consumption applications

Online payments

As at June 2025, China had 1.022 billion online payment users, accounting for 91.0% of all internet users.

In the first half of 2025, the online payment industry showed new features, including more diverse market competition, innovation in payment services for small and micro businesses, and faster internationalisation of the digital renminbi.

First, competition became more diverse and localisation accelerated. Douyin Pay increased its registered capital to RMB 3.15 billion, becoming the fourth-largest payment licence holder by registered capital. Ant Group interconnected with local wallets in South-East Asia, including Indonesia's DANA and Malaysia's Touch 'n Go, supporting localised operations.

Second, policy measures and payment innovations supported small and micro merchants. Eight cities, including Suzhou, Jinan and Chengdu, piloted access to credit-regulation data for mobile payment platform companies such as WeChat Pay and Alipay. Simplifying the process for activating merchants' payment collection codes supported the healthy development of businesses. WeChat's payment collection assistant added a function allowing small and micro merchants to collect payments by scanning customers' payment codes with a mobile phone.

Third, the central bank planned to establish an international operations centre for the digital renminbi. Since the pilot began, ten operating institutions had participated, with additional banks and non-bank institutions joining, and trials running in 26 areas across 17 provinces, municipalities and autonomous regions.⁵⁴ In June, People's Bank of China Governor Pan Gongsheng announced at the 2025 Lujiazui Forum that an international operations centre would be established in Shanghai. It would advance international digital renminbi operations and financial-market business, supporting innovation in digital finance.

Online shopping

As at June 2025, China had 976 million online shopping users, an increase of 1.09 million compared with December 2024, accounting for 86.9% of all internet users.

In the first half of 2025, the online shopping market maintained steady growth. Online consumption-promotion campaigns were popular, and trends such as AI-enabled consumption and emotionally motivated purchases continued to emerge. Between January and May, national online retail sales reached RMB 6.04 trillion, up 8.5% year on year.⁵⁵

First, online trade-in schemes and other consumption-promotion activities produced significant results. In the first half of 2025, trade-in subsidies combined with additional platform promotions helped unlock consumer spending. Among internet users who participated in consumer goods trade-in schemes, national subsidy programmes and similar activities during the preceding six months, 67.5% chose to participate through online e-commerce platforms. Household appliances and mobile phones and digital products had the highest participation rates, accounting for 49.1% and 43.4% respectively of internet users taking part in these activities.

Second, AI-enabled online consumption flourished. E-commerce platforms used AI algorithms to recommend products and developed new digital shopping experiences through intelligent shopping assistants and virtual fitting rooms, improving both experience and efficiency. AI also gave smart devices more advanced capabilities, stimulating online sales. During the preceding six months, 45.0% of online shoppers had bought smart products online. Smart wearables, smartphones and digital products, and smart home devices and household appliances were the most commonly purchased categories, at 22.6%, 22.4% and 11.9% respectively.

Third, emotionally motivated online consumption grew rapidly. As demand shifted from primarily functional needs towards emotional connection, paying for emotional satisfaction became a new online consumption trend, reaching 327 million users. Among these consumers, 28.1% bought blind boxes, intellectual-property-themed merchandise or anime and related products online, while 10.0% bought stress-relief or comfort toys online.

Online food delivery

As at June 2025, China had 569 million online food delivery users, accounting for 50.7% of all internet users.

In the first half of 2025, the online food delivery market developed steadily, with new developments in market growth, technology applications and social responsibility.

First, industry revenue continued to grow. In the first quarter of 2025, Meituan's revenue increased by 18% year on year,⁵⁶ while Alibaba's Local Services Group revenue increased by 10%.⁵⁷ Meituan's innovative brand satellite-store model for restaurant chains made progress, offering users a wider range of delivery options and helping branded merchants explore new growth opportunities. In February, JD.com announced the launch of food delivery services and promised participating merchants a full year without commission charges. Positioning itself around quality dine-in restaurants, it sought to compete through quality and service.

Second, drone deliveries and artificial intelligence improved operational efficiency. In the first half of the year, drone-related equipment was deployed at increasing scale in food delivery and local services. By the end of March, Meituan drones had opened 55 routes in cities including Shenzhen, Beijing, Shanghai and Dubai, completing more than 520,000 orders.⁵⁸

Third, platforms increased protection for delivery riders' social rights and interests. During the first half of the year, food delivery platforms successively announced social insurance contributions for riders. After taking the lead in piloting occupational injury protection in 2022, Meituan announced trials in April in urban areas of Quanzhou, Fujian, and Nantong, Jiangsu. These provided subsidies for eligible riders' contributions to basic pension insurance for flexible workers.

4 Digital culture and entertainment applications

Online video

As at June 2025, online video users numbered 1.085 billion, an increase of 14.90 million compared with December 2024, accounting for 96.7% of all internet users. Long-form video had 701 million users, or 62.4% of all internet users; short videos had 1.068 billion users, or 95.1%; and micro-dramas had 626 million users, or 55.8%.

In the first half of 2025, online video platforms accelerated their strategic development. Content became more diverse, the integration of long-form and short-form video strengthened, and commercial models continued to expand.

Long-form video platforms continued to broaden their strategies. First, they actively promoted the integration of film and television with culture and tourism, bringing new vitality to travel. Against a background of upgraded consumption and growing demand for cultural tourism, these platforms used their strengths to become an important driver of integration. For example, iQIYI's online drama Northward supported the development of cultural tourism along the Grand Canal, demonstrating how a single drama could increase a river's popularity. iQIYI worked with other platforms to increase interest in the drama and the Grand Canal. A joint Grand Canal educational travel feature with Baidu Baike received more than 80 million impressions. At the same time, cultural and tourism organisations in canal-side cities such as Suzhou coordinated their promotional activity, increasing visitor numbers. In the drama's first broadcast week, total visitor numbers in canal-side cities increased by 40%, while homestay bookings rose by 215% year on year.⁵⁹

Second, platforms developed complementary long-form and short-form content ecosystems as new sources of growth. Long-form video platforms invested in high-quality micro-dramas to create sustainable, complementary ecosystems. Tencent, for example, introduced the Mars Short Drama Club mini-programme on WeChat. A free-to-watch, advertising-supported model attracted users and provided traffic for short dramas. Tencent also drew on the online literature resources of its China Literature subsidiary to build an established short-drama content ecosystem and strengthen its competitive position in content.

Short-video platforms continued to expand their commercial models. First, they enriched their content ecosystems. Douyin, Kuaishou and other platforms strongly supported content creation. By the end of 2024, China had 1.62 billion short-video creator accounts and produced more than 130 million short videos per day.⁶⁰ In the first quarter, Kuaishou used traffic support, targeted operations and resource allocation to attract more than 130,000 small and medium-sized creators to its Fast Growth Plan. It developed a group of high-quality creators, helping them expand their audiences and personal brands rapidly.⁶¹

Second, short-video platforms continued to expand their local services businesses. By combining local government resources, platform traffic and local merchants, they linked online and offline consumption and brought new customers to more physical businesses. For example, the Guangxi Zhuang Autonomous Region Department of Commerce and Douyin Life Services jointly promoted the 33 Consumption Festival. Between 15 and 24 March, sales from Douyin group-buying orders in Guangxi exceeded RMB 70 million, while merchant live-streaming sales increased by 221% compared with the preceding period.⁶²

The micro-drama industry continued to explore higher-quality development. First, micro-dramas became more closely integrated with other fields. In 2025, the National Radio and Television Administration continued its Micro-drama Plus action plan, adding initiatives such as Learning the Classics through Micro-dramas and Exploring Intangible Cultural Heritage through Micro-dramas. This broadened subject matter and supported higher-quality productions, while turning audience traffic into industrial and market advantages and creating new sources of economic growth.

Second, development linked large and small screens. Bringing micro-dramas to television enabled traditional broadcasters to distribute new audiovisual content and develop new ways to transmit Chinese traditional and local culture. During the Spring Festival, Jiangsu Satellite TV launched the Reli Micro Theatre programming strand, linking micro-dramas with brand promotion, culture and tourism, and receiving a positive public response.

Third, artificial intelligence further supported micro-drama production. Text-to-text, text-to-image and text-to-video model capabilities greatly improved the efficiency of scriptwriting, scene creation and video production. For example, the science-fiction micro-drama series Sanxingdui Future Revelations made extensive use of AI to construct scenes. This substantially reduced physical set-building and post-production visual-effects costs, while making fantastical scenes that were difficult to achieve through conventional filming easier to realise.

Online games

As at June 2025, China had 584 million online game users, an increase of 26.92 million compared with December 2024, accounting for 52.0% of all internet users.

Approval information published by the National Press and Publication Administration⁶³ showed that 757 domestic online games received licences in the first half of the year, an increase of more than 20% year on year, demonstrating clear growth.

The number of female players grew rapidly, supporting market expansion and innovation. As games responded more accurately to women's needs and female players' spending power increased, the market for games targeting women continued to expand. As at June 2025, women accounted for 48.0% of online game users, an increase of 3.1 percentage points from the end of 2024. Women had become a major group particularly in mobile gaming. Data showed that the Chinese market for games targeting women grew by 124.1% year on year in 2024, far above the industry average.⁶⁴ Increasing numbers of these games incorporated combat, adventure and other elements to meet diverse needs.

Chinese online games gained new opportunities overseas. As the industry developed rapidly and leading high-quality titles such as Black Myth Wukong emerged, the positive value of games received increasing attention and recognition. Overseas expansion became an important part of the international development of China's cultural industries. In March, the General Office of the Communist Party of China Central Committee and the General Office of the State Council issued the Special Action Plan to Boost Consumption, including games within the policy support for new forms of consumption.⁶⁵ In April, the State Council issued the Work Plan for Accelerating Comprehensive Pilot Programmes for Expanding Opening-up in the Service Sector.⁶⁶ It explicitly included the development of overseas gaming businesses and the establishment of the entire chain, from intellectual property creation to game production, publishing and overseas operations, within national strategic programmes.

Online literature

As at June 2025, China had 513 million online literature users, accounting for 45.7% of all internet users.

The overseas popularity of Chinese online literature continued to increase. First, it gained wider public recognition. In 2024, Chinese online literature had approximately 200 million active overseas users, with 30 million new registered users, 120,000 new overseas local authors and 500,000 new works created locally overseas.⁶⁷ By the time of the report, 26 online literary works had entered the British Library's collection. Joy of Life 2, adapted from an online novel, became the most popular mainland Chinese television drama on Disney's streaming platform.⁶⁸

Second, artificial intelligence accelerated overseas expansion. AI was applied extensively to cross-language translation and content production. China Literature's writing-support product Writer's Assistant integrated an independently deployed DeepSeek-R1 model and opened access to writers across the industry. Following the integration, daily active users of Writer's Assistant increased by more than 30%, weekly use of its AI functions exceeded 50%, and the average daily number of writers using its intelligent question-and-answer function increased tenfold.⁶⁹

5 Digital service applications

Tourism and travel

As at June 2025, China had 514 million online travel booking users, accounting for 45.8% of all internet users.

Policy benefits promoted rapid growth in inbound tourism, while digital technologies supported rural tourism.

First, inbound tourism continued to grow strongly. Policies expanding visa-free access and extending visa-free transit stays supported rapid growth. By March, foreign arrivals through ports of entry nationwide had reached 9.215 million, an increase of 40.2% compared with the same period a year earlier.⁷⁰ Departure tax-refund policies continued to improve, increasing the appeal of shopping for inbound tourists. During the first three days of the May Day holiday, spending by inbound tourists through Alipay increased by 180% year on year. Cultural and creative souvenirs, clothing, footwear and electronic products were among the goods purchased by foreign visitors.⁷¹

Second, technological innovation supported improvements in rural tourism. From tourist attractions to rural communities, rural travel was becoming a new cultural tourism trend. In the first quarter of 2025, rural tourism recorded 707 million visits nationwide, an increase of 8.9% year on year.⁷² Innovation promoted the integration of agriculture, culture and tourism. Supported by the Internet of Things, big data and AI, agricultural production processes were creatively transformed into experiences that visitors could see and participate in. Farming experience parks and smart agricultural science museums enabled visitors to experience technological agriculture close up. Digital twins also allowed participation in virtual lantern festivals and online boat races, providing immersive encounters with rural culture.

As at June 2025, China had 511 million ride-hailing users, accounting for 45.6% of all internet users.

Ride-hailing platforms diversified their services and accelerated their international expansion.

First, platforms introduced services to meet varied needs. Didi's domestic intercity coaches, urban minibuses, pet-friendly travel and charter services developed rapidly, supporting revenue growth. In 2024, transaction volume on Didi's core platforms reached 16.005 billion orders, up 18.8% year on year.⁷³ Platforms also provided accessible travel for disabled people, older people and people with particular requirements. By March, CaoCao Mobility's Limo service was operating in Hangzhou, Suzhou, Guangzhou, Wuhan and other cities, having provided more than five million passenger journeys.⁷⁴

Second, platforms worked with manufacturers to expand overseas. Didi's international business covered countries in Latin America, the Asia-Pacific region and elsewhere, and grew rapidly. In the first quarter of 2025, total international orders reached 989 million, up 24.9% year on year.⁷⁵ As Chinese new-energy vehicles gained influence overseas, Didi partnered with domestic vehicle manufacturers to develop international markets. In April, Didi announced plans to introduce 100,000 Chinese electric vehicles into Mexico by 2030. Through its Brazilian subsidiary 99, it also planned coordinated development of 10,000 Chinese-made public charging points, working with Chinese new-energy companies to open overseas markets.⁷⁶

Internet healthcare

As at June 2025, China had 393 million internet healthcare users, accounting for 35.0% of all internet users.

Digital innovation provided essential support for internet healthcare development.

First, the collection of medicine traceability codes accelerated.⁷⁷ The National Healthcare Security Administration strengthened code-based regulation to prevent illegal practices such as substituting or reselling medicines paid for by medical insurance and using insurance cards for fictitious or fraudulent transactions, protecting both medicines and insurance funds. By March, the national medical insurance information platform had collected 27.309 billion traceability code records, covering all 31 provinces, autonomous regions and municipalities, as well as the Xinjiang Production and Construction Corps.⁷⁸ Purchasers could scan the traceability code on a medicine package to obtain production, distribution and sales information, making medicine purchasing safer.

Second, innovations such as 5G supported healthcare development. Pilot and demonstration applications combining 5G with healthcare advanced. In March, the Ministry of Industry and Information Technology and the National Health Commission identified 274 outstanding national 5G healthcare pilot projects. Applications such as remote medical diagnosis helped address resource shortages in local hospitals and improve regional healthcare services.⁷⁹ The projects addressed diverse clinical and healthcare needs, exploring innovative 5G uses in remote diagnosis and treatment, intelligent monitoring, emergency rescue and health management.

Online education

As at June 2025, China had 293 million online education users, accounting for 26.1% of all internet users.

Online education platforms brought together high-quality educational resources and supported more balanced development.

First, platforms promoted educational innovation and accelerated the accumulation of high-quality digital resources. The national smart education platform sought to create a comprehensive, interconnected system spanning all areas and levels, while exploring integration between AI and education. In March, the intelligent version 2.0 of the National Smart Education Public Service Platform was launched, including the core AI Testing Ground module to promote innovation in human–machine interaction. The platform continued to bring together high-quality digital educational resources and extend access to them. By May, registered users of the national smart education platform exceeded 164 million.⁸⁰

Second, platforms developed distribution partnerships to improve rural education. They expanded cooperation to make educational resources more widely available in rural areas. In April, the Guangdong television portal for the National Smart Education Platform for Primary and Secondary Schools went live, directing high-quality courses and resources towards remote rural communities and supporting digital, balanced and integrated educational development across urban and rural areas and regions. The internet enabled rural pupils to share high-quality teaching resources from urban schools, and use continued to rise. By June, online education usage in rural China reached 17.4%, with 55.82 million users.

July 2025, 56th China Internet Network Information Centre (CNNIC) V1.0