The political economy of digital governance in the AI era: the case of China

The Chinese government’s rapid uptake of digital governance raises a critical question: what enabled China’s rapid transition to digital public governance? By extending the technology-organization-environment (TOE) framework to incorporate international political economy, this study argues that both domestic and international political economy jointly accelerated China’s digital governance efforts. Examining data collected from policy documents and interviews, findings highlight three dimensions of the domestic and international political economy that propelled digital governance and digital infrastructure building – a foundation for digital participation in China: (1) Sino-US competition – such as the AI race – and China’s aspiration for ‘national rejuvenation’ have strengthened central government commitment to digital governance; (2) pushed by central government’s mandate and motivated by financial incentives and career advancement, local governments have actively competed to expand digital governance initiatives; and (3) tech firms, driven by financial opportunities, have played a pivotal role in supporting and implementing digital governance projects.