Transforming and upgrading the whole economy necessitate developing digital economy，which is crucial to helping China become an Internet power as a whole. With the development of the Internet and the new generation of information technology，various innovative applications and solutions have come up，which has brought opportunities to further develop digital economy. Through research and analytical work on relevant data of the Internet sectors，it is found that the progress and upgradation have been made in network environment，technologies，cyberspace securities，and digital governance. Internet has played an important role in driving the economic growth and improving the whole well-being in China. Therefore，the digital economy tends to exhibit the following characteristics in 3 to 5 years：First，fundamental network construction is likely to thrive with the undergoing support by 5G technologies and IPv6 deployments. Second，e-commerce，online advertising，digital content and other markets are expected to see a medium-high growth，which is likely to bring more Internet users. Third，the advance of digital technologies is expected to be integrated into developments of the whole economy and society as well，which further serves the digital transformation of real economy，public service and social governance. It is suggested to bridge digital gap，create key technological ecologies，build Digital Silk Road，prevent safety risks，and construct a coordinated governance mechanism so as to create a friendly environment for the digital economy in China.