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In order to solve the huge impact of the digital information age on many technical and industrial fields, a periodic fast search genetic algorithm is proposed. Based on the reconnaissance mission, this paper introduces the common allocation strategy into mission planning, and constructs the mathematical model of multi unmanned aerial vehicle (UAV) cooperative reconnaissance mission planning decision‐making. The proposed periodic fast search genetic algorithm is used to solve the problem of multi UAV cooperative reconnaissance mission planning. In 2020, the industry growth rate of global UAV technology expenditure was as high as 30.6%, and the compound growth rate of UAV in China reached 63.5%, which is enough to see the great prospect of the integrated development of UAV technology and different industries. The experiment evaluates the log verification module of UAV by comparing the two data structures of Merkle tree and linear, and the time and memory overhead of storing and verifying logs, which shows the effectiveness of the log verification scheme in this paper. [ABSTRACT FROM AUTHOR]

Digitalization and greening are key themes in global development, the manufacturing industry, as a major sector of energy consumption and carbon emissions, is in urgent need of transformation to realize energy conservation and emission reduction, digital transformation provides an opportunity for its green development. However, whether digital transformation can restrain the carbon emission intensity (CEI) of enterprises is still controversial. Based on the data of China's A‐share manufacturing listed companies from 2013 to 2020, this paper uses fixed effect model and intermediary effect model to explore the relationship between digital transformation and enterprise CEI and the influence path. the results show that: (1) Digital transformation has significantly reduced the CEI of manufacturing enterprises. (2) Mechanism analysis indicates that green technological innovation and resource allocation efficiency play a chain mediating role in this relationship. (3) Heterogeneity analysis shows that the carbon emission reduction effect of digital transformation is more significant when enterprises belong to an energy‐intensive manufacturing industry or face strong environmental regulations and industry competition. The analysis of this paper not only deepens enterprises' understanding of digital transformation and green development but also provides a policy basis for China to advocate the coordinated development of the digital economy and green economy. [ABSTRACT FROM AUTHOR]

Focusing on digital transformation of manufacturing enterprises, this paper investigates the relationship between digital transformation and financial performance of manufacturing enterprises through descriptive statistical analysis, correlation analysis, multilayer linear regression analysis, and group testing of the impact of digital transformation stages on the financial performance of enterprises, taking listed manufacturing companies that implement digital transformation as a sample. The research results show that there is a significant positive impact of digital transformation on financial performance of manufacturing enterprises; the more digitalized the information technology (IT) architecture is when enterprises undergo digital transformation, the closer to hybrid cloud platform + agile manufacturing, the higher the inventory turnover rate and total asset turnover rate of enterprises will be; in the early stage of digital transformation of enterprises, the profitability performance of enterprises will be reduced. However, as the digitalization process of enterprises deepens, the net sales margin and total asset return of enterprises will gradually increase, which may be due to the reason that the impact of enterprise digital transformation on profitability performance has a certain lag. [ABSTRACT FROM AUTHOR]

Globally, labour markets are encountering profound changes because of the digital revolution. Middle‐income countries such as China are leapfrogging high‐income countries to take advantage of the digital economy. The growing use of digital technologies is also reshaping the labour market in high‐income countries such as Australia. Potentially, new technologies may facilitate both employers and employees to overcome some of the barriers to disability employment. However, it seems that the opportunities and hopes have not yet translated into improved employment rate for people with disability. This paper uses an ecosystem framework to examine the state's role in improving the critical elements of disability employment: developing a national strategy, creating employment opportunities, building capacity and enhancing accessibility. This paper compares the historical development of disability employment and the policies introduced to take advantage of digital technologies across China and Australia. It studies the national policies, funded activities and the governing structure in China and Australia. The findings revealed distinctive approaches that have played to the strengths of each country. However, both countries need to address the weaker links to deliver a real paradigm shift. [ABSTRACT FROM AUTHOR]

Financial technology formed by the combination of digital technology and traditional finance is gradually changing the financial services model. The development of financial technology has influenced the behaviour of commercial banks. It has promoted the innovation of commercial banks. And it has promoted the digital transformation of commercial banks. In this paper, it is intended to explore the relationship between financial technology and digital transformation of banks through positive analysis. As well as to explore how the age of enterprises listed and enterprise life cycle affect the relationship between financial technology and digital transformation of banks. This paper conducts an empirical research on the data of China's A‐share listed banks from 2011 to 2021 using a two‐way fixed effects regression method. The results of the research indicate that financial technology promotes banks' digital transformation. Meanwhile, the age of enterprise listing and enterprise life cycle play a positive moderating role in financial technology promoting banks' digital transformation. In this paper, it is the first time to conduct an empirical research with the number of monthly active users of mobile banking as a proxy variable for digital transformation of banks, which enriches the study of financial technology. It has certain reference value for promoting digital transformation of banks. [ABSTRACT FROM AUTHOR]

Digital transformation has given firms new development capability. This paper portrays the overall digital transformation intensity of China's listed firms in 2007–20, and empirically examines the impact of digital transformation on outward foreign direct investment (OFDI) and its transmission mechanisms for the first time. It is found that digital transformation significantly enhances OFDI with two transmission mechanisms: (1) reduced transaction costs and (2) improved production and operation efficiency [Correction added on 25 Aug 2023, after first online publication: The number of transmission mechanisms have been corrected from 'three' to 'two' in this version.] The impact is more pronounced in the host countries whose economies are more digitalized, in private enterprises, and in the service industries than in their respective counterparts. [ABSTRACT FROM AUTHOR]

The greening of enterprises concerning society is a matter of sustainable development of the economy. At the same time, the Internet brings technology diffusion and information transfer, which affects the greening of enterprises. Therefore, we empirically examine the impact of the Internet on greening from the perspective of green innovation and environmental violations based on the data of listed firms in China between 2010 and 2019. This paper found that the Internet effectively promotes green innovation and inhibits environmental violation, and governmental transparency positively moderates the relationship between the Internet and greening. We also conducted a series of robustness tests like a quasi‐natural experiment based on Broadband China and tested the impact of digital transformation on greening for further study. Our findings enrich the literature by showing how a macro‐level technological infrastructure such as the Internet can impact the micro‐level behaviors of a firm. [ABSTRACT FROM AUTHOR]

To support young children's learning during the coronavirus 2019 (COVID‐19) pandemic, preschool educators in Hong Kong were required to teach with digital technologies. In this study, 1035 educators from 169 preschools reported their views and practices in an online survey, which we examined via multilevel mixed‐response analysis and thematic analysis. More than half of the respondents (53%) expected future online teaching to continue, and only 11% of educators believed that parents would reject this form of delivery. Administrators and teaching assistants were more likely than teachers to expect online preschool teaching to continue in the future. In addition, respondents with existing online platform experience, who taught the upper levels of preschool, or incorporated specific teaching practices (eg, after the online lesson, they assessed children and assigned homework tasks), were more likely than others to expect online teaching in the future. Many of these respondents also reported (a) difficulty with engaging their children when online and (b) inadequate support from parents for learning activities, which reduced the respondents' perceived likelihood of future online teaching. Administrators and teaching assistants were more likely than teachers to believe that parents would accept online teaching in the future. Respondents who felt they had inadequate training to teach online, children in families with inadequate technical skills and parents who believed that online lessons harmed children's well‐being, were less likely than others to believe that parents would accept online teaching in the future. These educators believed that online learning communities could connect parents and schools and foster interaction that could help align with educator's support for children's learning needs. Practitioner notesWhat is already known about technology integration for young children during COVID‐19COVID‐19 led to the closure of many schools, requiring teachers to teach online.Barriers to integrating technologies in preschool settings existed before the pandemic.Online teaching can support students' learning, but few studies have examined technology integration for preschoolers at home during a pandemic.What this paper addsThis paper adds new data on schooling during a pandemic. During the closures, preschool teachers applied two major online teaching approaches: (a) digital content interaction and (b) online human interaction.Technology integration was added to provide evidence of how teachers applied online learning resources for young children during COVID‐19.During closures, teachers often delivered learning resources via digital‐mediated learning platforms, but they were less likely than other educators to expect online teaching in the future.Educators who perceived greater engagement of children or support from parents were more likely to expect online teaching in the future.Implications for practice and/or policyThis study showed that some preschool teachers integrated technology into their teaching during a pandemic, and future studies can explore how to facilitate or extend this integration after the pandemic.This study showed the need for more interactive online teaching preparation to address young children's learning needs.Some teachers were responsive to feedback from children and monitored their learning during the online teaching process. [ABSTRACT FROM AUTHOR]

The information services (IS) industry, which facilitates industrial transformation and upgrading, has emerged as a key driving force behind China's economic growth in recent years. More evidence can be accumulated from the Pearl River Delta (PRD), one of the largest transforming economies and IS gathering region in China. Firstly, this paper investigates the spatial patterns and dynamics of IS agglomeration in the PRD from 2003 to 2018, using the spatial autocorrelation analysis and Kernel density analysis. Secondly, a dynamic panel model with a system generalized method of moments (SYS‐GMM) estimation is employed to identify the factors significantly influencing the industry agglomeration economy. Results show that: (1) Large firms continue to gather in the core area of major cities, while smaller firms show a more balanced distribution from the core to periphery regions. The spatial proximity of firms proves that micro firms benefit less from industrial agglomeration compared to larger ones. (2) The effects of agglomeration externalities on economic growth remains positive, with labor force and commuting costs playing a vital role in the expansion of the IS industry. By integrating geo‐spatial information and empirical evidence, this study contributes to China's understanding and experience as a late‐developing country in the digital economy era. Finally, policies supporting small and medium enterprises (SMEs), improving the effectiveness of government subsidies, and strengthening industry‐university research cooperation are proposed. [ABSTRACT FROM AUTHOR]

The increasing value of patents for innovation and the permeability of digital technologies have triggered patent digital platforms (PDPs) as a new business model of patent intermediaries. While current literature mainly focuses upon PDPs within a developed country, China shows unique features with a relatively unmatured patent market. This paper aims to explore conditional configurations that lead to the operational success of PDPs throughout China. The results indicate two configurational paths: "firm size driven" and "digital infrastructure and knowledge assets driven." Furthermore, environmental factors are peripheral conditions yet important. Our findings have enriched the understanding of patent intermediaries in digital age and sheds light on PDP theory and practice. [ABSTRACT FROM AUTHOR]

Digital transformation is globally pervasive, and exploring how it can shape enterprises' sustainable development is significant. Using the panel data of 710 listed corporates in China from 2011 to 2020, this paper empirically investigates the impact of digital transformation on corporate Environmental, Social and Governance (ESG) performance with the fixed effect model and the SYS‐GMM method. The results indicate that digital transformation significantly improves corporate ESG performance, especially environmental and social performance. A looser financing constraint (FC) environment will make the improvements in ESG performance from digital transformation more visible. Among corporates with low FCs, private corporates, and non‐technical corporates, digital transformation has a more noticeable effect on improving ESG performance by easing FCs. Our research presents implications for policymakers and business decision‐makers to achieve alignment between corporate digitalization and sustainability. [ABSTRACT FROM AUTHOR]

Improving total factor productivity (TFP) is essential to achieving high‐quality and sustainable economic development. The existing literature mainly focuses on the impact of traditional infrastructure on TFP but generally ignores the role of new digital infrastructure in TFP and does not test impact mechanisms and whether there is heterogeneity in effects. Using panel data of 30 regions in China from 2006 to 2017, this paper analyzes the impact of new digital infrastructure on TFP and its mechanisms. The results are as follows: (1) New digital infrastructure can significantly improve regional TFP. After the robustness test, the results still support the findings. (2) New digital infrastructure can promote technological innovation, optimize factor allocation, and achieve economies of scale, thus improving TFP. (3) Further analysis shows that the positive effect of new digital infrastructure on TFP shows significant heterogeneity. In regions with high economic development levels, high research and development (R&D) levels, and high traditional infrastructure development levels, the positive effect of new digital infrastructure on TFP is more obvious. These findings not only enrich the literature on digital infrastructure and economic growth but also serve as a reference for governmental departments as they optimize their strategy for developing digital infrastructure and realizing sustainable economic development. [ABSTRACT FROM AUTHOR]

This paper investigates conditional configurations for improving high‐tech enterprises' new product development (NPD) performance under complex environment of digital era in China. The results indicate that digital transformation is neither sufficient nor necessary for high NPD performance but a significant component of those configurations for high NPD performance. Through the fuzzy‐set qualitative comparative analysis (fsQCA) approach, four configurations for high NPD performance and four configurations for non‐high NPD performance are generated from complex nonlinear interactions among five antecedent conditions of NPD performance. Our findings enrich the literature on NPD performance and provide references on enterprises' decision making on digital transformation. [ABSTRACT FROM AUTHOR]

China and the United States host the world's largest digital platforms. Platforms are multisided markets that facilitate value‐creating exchanges among users, such as social media, e‐commerce, software QJ;application downloads, search, email, and cloud services. Internet access and the purely digital nature of many of the products and services make digital platforms potentially global in scope. This means that the rules and restrictions governing the flow of capital and information services among national markets strongly influence the economic and social potential of digital platforms. The paper conducts a sequential analysis of the rise of barriers to the United States–China trade in ICT and digital platform markets from 2000 to 2021. We find that China's thriving platform economy was relatively open, competitive and market‐driven in its early stages, and benefited from U.S. capital and the entry of U.S. firms. Since 2009, both countries have progressively restricted access to each other's domestic information services markets. In both cases, the primary stated rationale involved national security claims rather than trade policy concerns. Drawing on International Political Economy theory, we label the United States–China interaction pattern digital neo‐mercantilism. Digital neo‐mercantilism fuses the power and security of the national state with economic development in the digital economy. Policymakers represent information flows and digital technologies in domestic policy discourse as critical to the security and relative power of the state, and pursue various forms of industrial policy, data localization, trade protectionism, or exclusion of foreigners as a result. Both the United States and China are following this policy. [ABSTRACT FROM AUTHOR]

Digital competence is critical for university students to adapt to and benefit from digitally enhanced learning. Prior studies on its measurement mostly focus on educators and relied on factor analyses. However, there is a lack of valid and convenient tools to measure university students' digital competence. This study aimed to develop a digital competence scale for university students (DC‐US) in digitally enhanced learning with robust psychometric properties. An initial DC‐US with 23 items was proposed to measure the single latent trait of digital competence. It was validated and refined continuously through a pilot study, a main study and a predictive validity study in three datasets involving 825 participants altogether, using factor analyses, Rasch analyses and the partial least squares modelling. The final DC‐US turned out to comprise two subscales: technical literacy and digital skills, with 10 items retained, and manifested high internal consistency, unidimensionality and measurement invariance. The scale also demonstrated strong predictive validity, with technical literacy greatly predicting digital skills, which negatively predicted technostress. The DC‐US enables instructors and school administrators to conveniently obtain preliminary information of university students' digital competence, informing their digital class preparation and development of timely interventions for addressing digital deficiencies. Lay Description: What is already known about this topic?: Digital competence is critical for university students to adapt to and benefit from digitally enhanced learning (DEL).There is a lack of valid and convenient tools to measure university students' digital competence.Prior studies on its measurement mostly focus on educators and relied on factor analyses. What this paper adds?: A unidimensional, valid and unbiased digital competence scale was developed for university students.Rasch analyses and classical test theory were employed jointly for the scale development.The digital competence scale comprised two subscales: Technical literacy and digital skills. Implications for practice: University students can use the scale for a quick self‐assessment of their digital competence before joining DEL.Instructors can use the scale to gain an initial knowledge of their students' digital competence to inform digital class preparation.University administrators can rely on the scale to quickly evaluate the implementation effectiveness of DEL schemes. [ABSTRACT FROM AUTHOR]

Information and communication technology (ICT) plays an important role in rural livelihoods and household well‐being. Therefore, this study examines the impact of ICT adoption on farmers' decisions to access credit and the joint effects of ICT adoption and access to credit on household income using 2016 China Labour‐force Dynamics Survey data. Both recursive bivariate probit model and a selectivity‐corrected ordinary least square regression model are employed for the analysis. The results show that ICT adoption increases the probability of access to credit by 12.8% in rural China and empowers rural women and farm households in relatively less‐developed regions to access credit. ICT adoption and access to credit affect household income differently. ICT adoption significantly increases household income, while access to credit significantly reduces it, primarily because farmers do not use the acquired credit to invest in income‐generating farm and off‐farm business activities. ICT adoption has the largest positive impact on household income at the highest 90th quantile. Our findings suggest that improving rural ICT infrastructure to enhance farmers' ICT adoption and developing ICT‐based financial products to enable households to access sufficient funds can improve rural household welfare. [ABSTRACT FROM AUTHOR]

Digital transformation has become a general trend for enterprises, and it is necessary to investigate the impact of government support on enterprises' digital transformation from the perspective of policy instruments. But so far, there is less empirical evidence on their relationship. Based on Chinese firm‐level data, we investigate the effects of government subsidies and tax incentives on enterprises' digital transformation. The results show that two forms of government support both positively promote enterprises' digital transformation. Moreover, we analyze which factors mediate the observed effects. We demonstrate that easing financial constraints, increasing Research and Development (R&D) investment, and improving risk‐taking ability are underlying mechanisms. Heterogeneity analysis indicates that enterprises that are non‐state‐owned, with higher technology level and higher absorptive capacity, have higher digital transformation. The higher the level of digital finance development and network infrastructure construction in a region, the greater the positive effect of government support on enterprises' digital transformation. The results provide clearer guidance for governments to provide government support so as to stimulate enterprises' digital transformation. [ABSTRACT FROM AUTHOR]

Digitalization is of great significance for resource‐based enterprises to break through the dual constraints of resource and environment. Based on the data of China's A‐share resource‐based listed enterprises, this study empirically examines the direct effect and transmission mechanism of digital transformation on the enterprises' environmental performance. The study finds that digital transformation significantly enhances the environmental performance of enterprises by stimulating green technology innovation, accelerating human capital accumulation, increasing environmental information disclosure, and strengthening environmental governance. The environmental performance of state‐owned, large‐size and high‐tech resource‐based enterprises is more prominently affected by digital transformation. In the eastern region and areas with higher environmental regulation, the impact of digital transformation on the environmental performance of resource‐based enterprises is more significant. This study provides targeted suggestions for resource‐based enterprises to make full use of the digital dividends and achieve high‐quality development. [ABSTRACT FROM AUTHOR]

The coordinated development of digitization and greening is the internal demand for the comprehensive transformation and upgrading of enterprises worldwide. Based on data of China's A‐share listed companies from 2012 to 2019, this article empirically confirms the stimulating effect of digital economy development on corporate low‐carbon innovation. The mechanism tests show that the above stimulating effect is due to both the reduction effects of financing constraints and environmental uncertainty brought by the rapid development of the digital economy. In addition, this article discusses the value of corporate social responsibility (CSR) and finds that the promotion of CSR can significantly improve the policy effect of digital economy development in enabling corporate low‐carbon innovation, especially for private listed enterprises in high‐pollution industries. The findings of this article deepen our understanding of how to promote corporate low‐carbon sustainable development in the digital era. [ABSTRACT FROM AUTHOR]

This article investigates the organisation of work under algorithmic control in the platform economy. Based on a 1‐year ethnographic study conducted at top food‐delivery platforms in China, this study finds two main mechanisms for organising labour under algorithmic management: the virtual organisation of labour and algorithm‐driven labour process control. First, platform drivers are reorganised in an outsourced labour force, placed in application‐based virtual‐networked production under sophisticated technological infrastructure. Second, to habituate drivers to the virtual mode of production, food‐delivery platforms utilise four algorithm‐driven control techniques, which are identified as: smart machinery control, information monopoly, management by multi‐stakeholders, and 'carrots and sticks'. The findings highlight the process of algorithmic design in configuring a digital managerial ecosystem for platform governance and contribute to emerging debates on algorithmic management. [ABSTRACT FROM AUTHOR]

The world's most valuable public companies today are built on digital platforms. While American digital platforms (ADPs) have successfully dominated many international markets, some Chinese digital platforms (CDPs) have managed to survive and thrive in China, with European digital platforms (EDPs) largely absent both at home and abroad. Using comprehensive longitudinal data over 6 years, this study examines the platform competition between ADPs and CDPs in China, and explores how digital platforms challenge traditional ways of thinking about strategy and international competition. Some ADPs initially dominated the Chinese market, but some CDPs used their institutional advantages in China to offset the competitive advantages of ADPs based on superior resources and capabilities and strong market positions. Their competition evolved over three distinctive episodes so far, and CDPs used successive temporary advantages to achieve sustainable competitive advantages dynamically and accomplished radical changes cumulatively through incremental changes. A new dynamic equilibrium model of platform competition – 'the spiral model' – between global and native digital platforms is developed, which highlights a trajectory that is different from the dominant models of change in the literature. Limitations of the study and new areas for future research are highlighted. [ABSTRACT FROM AUTHOR]

Since the late 2000s, digital platforms have developed rapidly and expanded extensively to various industries of the global economy. Existing literature on the rise of digital platforms has primarily focused on the national‐level context, while overlooking their cross‐border dynamics and subsequent effects on the reconfiguration of cross‐border production networks/value chains. Among the agri‐food sector, the fresh fruits sector is one of many that have undergone profound restructuring induced by the increasing penetration of digital platforms. In an attempt at making connections between the insights of the burgeoning platforms and global production networks (GPN)/global value chains (GVC) literatures, this study develops an interconnected analytical framework to examine the cross‐border expansion of China's digital platforms and resultant digital platform‐driven transformation of regional trade and distribution networks/value chains in the evolving regulatory and market conditions in home and host countries. Based on the onsite field investigations in Vietnam, Thailand and China during the late 2018 and early 2020, this study explores the emerging platform conglomerates through domestic intra‐platform and cross‐border interplatform vertical integration and extra‐platform partnership in the cross‐border expansion to the upstream trade and downstream distribution of fresh fruit imports from Southeast Asia toward China's market. The contributions of the article lie in three aspects. First, it enriches the platform literature by incorporating the cross‐border dynamics and expansion of digital platforms. Second, it advances the GPN/GVC literature by highlighting the power of digital platforms as new types of lead firms in the digital transformation of production networks/value chains. Third, it sheds light on the emerging China market‐oriented reconfiguration of the Southeast Asian fresh fruit production networks coordinated by the Chinese platform conglomerates. The analytical framework developed in this study could hopefully be extended to examine digital platform‐driven restructuring of a wider array of industries across variegated territories in the digital global economy. [ABSTRACT FROM AUTHOR]

Digital technologies, such as artificial intelligence (AI), big data, and the Internet of Things, are becoming increasingly mature. They have become the driving force behind a new wave of innovation and entrepreneurship activities worldwide. AI is the core of the contemporary digital technology industry. New high technologies bring greater opportunities for entrepreneurs to carry out entrepreneurial activities and bring unprecedented challenges to traditional entrepreneurial activities and theories. The existing literature on the impact of AI on entrepreneurial activities is still in the exploration stage. Based on this, this study aims to explore the entrepreneurial process of AI start‐ups, combining with existing literature, select AI unicorn start‐ups ByteDance for a case study, and apply the grounded theory method to analyse and summarise the entrepreneurial process of Internet start‐ups with AI. Thus, it can provide insights for many AI start‐ups and contribute to the existing entrepreneurial research. [ABSTRACT FROM AUTHOR]

In this study, drawing from adaptive structuration theory (AST) and embeddedness theory, we investigate the relationship between the interaction of HRM digitalization and HRM system maturity on firm performance as well as the moderating role played by HR strategic and business involvement. On the basis of a sample of 211 listed enterprises of China, our results indicate that the interaction of HRM digitalization and HRM system maturity is positively related to firm performance and that the relationship is strengthened by HR strategic and business involvement. The implications of our findings for research and practice are discussed. Key points: HRM digitalization can release a significant main effect to enhance firm performance.The maturity of HRM systems can strengthen the positive effect of HRM digitalization on firm performance.When HR departments are deeply involved in the organization's strategic management, the positive influence of HRM digitalization will be increased.When HR departments are deeply involved in the business operation, the positive impact of HRM digitalization will be enhanced. [ABSTRACT FROM AUTHOR]

China is home to the world's largest audience for e‐sports, or competitive videogames. While competitive videogames have become popular within a borderless, digital environment, the e‐sports fan base has a decidedly nationalist element to it. This article argues that new forms of digital nationalism are part and parcel of normal discourse within the Chinese competitive videogames environment. Through a case study of one specific competitive videogame, this article shows how nationalist narratives are enacted by the community itself at the grass roots, creating bottom‐up forms of nationalism. Combining digital fieldwork with offline interviews and observations, the study sheds light on new forms of nationalist expression appearing online in China. It focuses in particular on memes and how these serve as micro expressions of nationalism, maintaining and reinforcing nationalist narratives originating within state discourses. [ABSTRACT FROM AUTHOR]

China has built a very comprehensive financial system, but has not let the market mechanism work freely. This unique pattern, rooted in China's dual-track reform strategy between state and non-state sectors, did not prevent a strong economic performance in the past, but is now a main cause of economic inefficiency and financial risks. The rapid development of digital finance is a back-door way of financial liberalization, responding to both old repressive policies and new technologies. To accomplish the mission of building an efficient financial system, the government needs to take at least three further steps in financial reform: creating a level-playing field; freeing up the market mechanism; and improving regulation. The key test lies in the effective enforcement of market discipline for corporate and financial institutions. [ABSTRACT FROM AUTHOR]