China is set to have a new economic growth engine. But there are fundamental issues that need to be resolved. Move over property and auto, the new driver of China's consumption may be information.

Miao Wei, Minister of Industry & IT, says the B2B, B2C and C2C platforms are good practices already to draw more private investment, the Ministry says it will cut red tape, so private capital can access information and even military projects.

Investors are cheering China's push for the digital economy to play a bigger role. The Chinext startup board, which is IT heavy, is up 53% year to date, far outperforming the overall market's 7% drop.

The other building block would be faster internet connection. Along with other IT infrastructure, China will issue 4G licences within this year.

To support sustainable growth of the industry, user privacy protection remains a big concern.