Abstract: China has entered a stage of digital development focused on the optimization of production and business data models. Through the injection of data elements and fusion expansion, the structural change effect of digital transformation will promote economic development into a new stage, highlighted by the increase in industrial concentration, the emergence of digital divides between industries, the formation of a new central peripheral structure characterized by digital density and a more transparent and open management method. Digital technology will reshape the domestic market structure and realize the “diversification” of sources of comparative advantage. At the same time, the rise of digital currency will promote the integration of internal and external cycles, promote China to form a new development pattern of “dual cycles”, and expand and maintain the country’s digital sovereignty. China has a complete industrial system, abundant data resources, and significant advantages in digital transformation. Through a series of measures such as vigorously building new infrastructure, deepening digital investment, and breaking data islands, China will promote the in-depth development of digital transformation and move to become a strong manufacturing and trading country.