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Chronicles

The story behind the story

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China's biannual report says it has 904M internet users, 897M of those via mobile; education and live streaming services see growth as food delivery apps suffer

South China Morning Post :

South China Morning Post

Context & Ripple Effects

China's official internet census has been climbing steadily through the corpus: government statistics put the total above 800M in 2018 (57.7% penetration), and rural areas were still adding millions of first-time users as late as 2019 (225M rural users). The May 2020 report lands mid-arc at 904M — nearly all via mobile — with the pandemic visibly reshaping what those users do online rather than how many there are.

First-order effects

  • Food delivery apps are the immediate losers: with lockdowns suppressing restaurant orders, the category is shrinking even as overall usage grows — a reversal from the delivery-order surge recorded during the restricted Lunar New Year holidays a year earlier (orders up 57% YoY).

Second-order effects

  • Education and live streaming absorb the displaced attention, giving those platforms a captive audience while delivery operators are pushed toward grocery and essentials to replace lost restaurant volume.

Third-order effects

  • With penetration already near saturation, future reports track engagement mix more than user counts — a pattern confirmed when the user base crossed 1B in 2021 (up 8% from 2020, delivery recovered to 468M users) and later when short-video users posted their first decline.

The trend: China's internet statistics are shifting from a growth story about new users to a churn story about which services hold attention, with pandemic shocks accelerating the rotation between categories.

Discussion

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    China's mobile traffic up 40 per cent in March as information consumption surges amid coronavirus pandemic https://www.scmp.com/...