The rapid development of information technology has not only significantly changed people's social life, but also profoundly changed the mode of social production. As an emerging developing country, China has successfully caught up with the surging wave of information technology, and gradually become one of the world's information technology, especially Internet technology innovation centers, leading Internet technology innovation and industrial trends, and making outstanding contributions to the development of the Internet. How to understand the current situation of China's Internet development, especially the hot spots of technological innovation? How to judge the development trend of related fields? Wu Hequan, academician of the Chinese Academy of engineering, answered the above questions in depth, which can help us better understand the present and grasp the future. -- editor's note: the transformation of the Internet industry and the development of the digital economy are striking. At present, the world faces many uncertainties, especially the mutation of the COVID-19 virus, the conflict between Russia and Ukraine, the inflation in the United States and Europe, and the anti globalization, which pose challenges to world economic growth. Affected by these superimposed factors, China's economic growth rate in the first half of this year was not as good as expected. However, it is worth noting that the relevant indicators of the digital economy performed well, achieving the growth against the trend, and further enhancing the development resilience of China's economy. Claude Shannon, the founder of information theory, once said: "information is used to reduce random uncertainty, and the value of information is the increase of certainty." Indeed, through digitization, we can obtain and analyze data, greatly eliminate the asymmetry of various information, optimize resource allocation, improve the agility of responding to positive changes in the industrial chain and supply chain, and enhance the flexibility in the face of uncertainty. For a long time, the competent authorities of the Chinese government have adopted a prudent and inclusive attitude towards the management of the Internet, which has promoted the rapid development of the Internet and the Internet industry. However, at the same time, they are inevitably faced with some problems in the development process. For example, some enterprises use the monopoly of large platforms to suppress their peers, and abuse algorithms to infringe and damage the interests of consumers. In this regard, relevant parties have taken necessary governance measures and achieved remarkable results, which will help promote the Internet industry to be more standardized and orderly, enter a new stage of more healthy development, and usher in new and greater opportunities. This is also the macro background for the outstanding performance of China's digital related economic indicators in the first half of the year. Challenges and opportunities coexist in the new stage. On the one hand, we should be soberly aware that the traditional model of relying on the growth of the number of users to drive the development of Internet enterprises and industries is unsustainable and unsustainable. After more than 20 years of rapid development, especially in the last 10 years, fundamental changes have taken place in the software and hardware environment of China's Internet, pushing the Internet penetration rate to 73%, and the number of users has basically reached saturation; At the same time, each user's online time has reached an average of 4 hours per day. It can be said that the space for development driven by increasing the number of Internet users and the length of Internet access is very limited. On the other hand, we should also see that under the promotion of new technologies, the endogenous power of China's Internet is constantly increasing. Since the Internet came into commercial use in the 1990s, China has connected to the Internet and successfully caught up with the wave of information technology, creating a number of world-famous local Internet enterprises. With the commercialization of mobile communications, especially 4G, Chinese society has taken the lead in stepping into the mobile Internet era. With cloud computing