Alibaba AI Labs are displayed at the Apsara Conference 2019 in Hangzhou, capital of Zhejiang province, on Sept 25. [Photo/IC]

The digital economy of China's Yangtze River Delta (YRD) region totaled 8.63 trillion yuan ($1.2 trillion) in 2018, making it the region with the highest proportion of digital economy in the country, according to a report unveiled on Sept 23.

Hangzhou, capital of East China's Zhejiang province, topped a list of 27 cities in terms of digital economy development in the YRD region with 83 points, followed by Shanghai, Suzhou, Nanjing, Ningbo, Jinhua, Hefei, Jiaxing, Wenzhou and Changzhou.

Jointly compiled by the 21st Century Economic Research Institute and the research arm of Alibaba Group AliResearch, the report measures areas such as digital infrastructure, digital commerce, digital industry, digital government services, and livelihood services.

Hangzhou ranked first in four areas – digital infrastructure, digital commerce, digital government services and livelihood services – and it was the only city to earn 90 points in digital infrastructure and digital government services.

This can be attributed to Hangzhou's recent efforts to develop e-commerce retail and construction in intelligent cities.

With the help of artificial intelligence and 5G communication technology, the eastern entrepreneurial hub is expected to lead in digital economy development in the YRD region with its sound innovative environment and digital industrial clusters, said the report.