China is now a world leader in segments such as mobile Internet, said Duncan Innes-Ker, regional editor for Asia at the Economist Intelligence Unit.

"China clearly has a very dynamic Internet sector," said Duncan when talking about the ongoing World Internet Conference that is being held in Wuzhen, Zhejiang province.

The internet sector is also notable as being one part of the Chinese economy that is dominated mostly by private sector players, which may be part of the explanation for its dynamism and innovation, he added.

Online commerce is transforming the domestic retail sector in exciting and challenging ways, he said.