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China will make nearly 80 percent of its government and retail services digital in the next five years, according to a report released by Alibaba Cloud Research Center at Alibaba Group.

The report indicated that China is pushing forward with digital transformation across more sectors. Government services and retail business will be affected most by new technologies such as cloud computing, artificial intelligence, and the Internet of Things.

The report said that government services would be further digitized to serve residents and enterprises better. Supported by Alibaba’s cloud computing technology, more and more central government agencies and local governments accelerate their digital transformation.

China’s investment in government services is expected to hit about 16.3 billion yuan by 2020, a compound annual growth of 21.9 percent.

The report also noted that China would make the whole retail industry digital to further merge online services with offline services.

Now, Alibaba Cloud supports 40 percent of the top 500 Chinese companies, as well as nearly 50 percent of China’s listed companies and 80 percent of the country’s startups.