Many factors are responsible for the level of internet access in a country or region. In this series of blog posts, SpudnikLab examines the reasons underlying the digital divide, or the gap between those who have access to the internet and those who have limited or no access to digital connectivity. We’ve waded through the statistics from the reports on DataReportal and crunched the numbers for you, two countries at a time.
In this post, we zoom in on China and the US, and examine how they do for internet access. One factor that determines internet accessiblity is economic strategies and policy.
Reciprocal tariffs have escalated costs of digital devices and electronics for everyone
The US and China have locked horns in a trade war since the beginning of this year, 2025, each raising trade tariffs by huge amounts. The high reciprocal tariffs introduced by the US President Donald Trump to China and many other countries have triggered fears of a global recession, as prices for all goods have skyrocketed.
Despite smartphones, laptops and other goods deemed as necessities being exempt from the reciprocal tariffs, prices for these items have still surged. Many consumers in both countries have turned to e-commerce platforms to buy digital devices and daily necessities at a less unreasonable price.
On the 13th of May 2025, the leaders of China and the US agreed to temporarily suspend and lower the current tariff rates. However, the truce is likely to be temporary, as the reasons that sparked the tariff war still remain unsettled.
The US: Unpredictable economic moves destabilise a federal programme dedicated to equitable internet connectivity
About 16.4 percent of people live in rural America, which comes up to more than 31 thousand people. These people face many financial disadvantages, including access to healthcare, which only half of US residents say they can afford.
During the pandemic lockdowns, telehealthcare in the United States became the affordable and convenient alternative to traditional healthcare. Telehealth is a digital tool that allows patients to register and consult doctors online at the comfort of their own home. Patients can consult and order medicine via an app, reducing the price of a trip to the doctor by 60 percent.
Especially in rural areas, access to telehealth can mean saving the time and fuel costs of hour-long drives to the nearest clinic or hospital for simple outpatient care.
In 2022, the US federal government launched a programme promising to bring high speed broadband internet to rural areas within the country. The programme’s budget amounted to 42.45 billion USD, the most expensive among similar projects to date. Due to the high cost and specific equipment required for the programme, the execution has been delayed ever since its launch.
This year, 2025, funding for the programme paused indefinitely as the country’s economy is being shaken up by unpredictable moves within the newly elected government headed by Donald Trump. New measures include cutting off funding for multiple federal loans and grants, seeking to make major changes to the broadband programme which could have all progress upended.
Today, the programme has yet to bring anyone from the rural communities online.
China: An ageing society rushes to be the world’s first cashless economy
China is home to the largest economy in Asia, comprising half the gross domestic product in the region. It is also an ageing society, with about 210 million citizens aged 65 and older this year, or 14.9 percent of the total population.
As a bustling commercial hub, China is racing to lead the digital revolution in the economic sector. Policies by the Chinese government have incentivised companies and consumers to rapidly adopt digital payments. Within two decades, the nation has become widely recognised as the world’s largest cashless society today.
Despite the flourishing digital landscape, the ageing population in China remains far behind the digital curve. Seniors who struggle to use a mobile phone for anything other than making calls and sending texts are dumbfounded by QR codes and digital payment methods. Yet cashless transactions are so ubiquitous in China today that stores reject cash as a payment method, even when senior customers aren’t able to make purchases digitally and have to be turned away.
The struggles faced by seniors surfaced during the pandemic, when scanning QR codes for identity verification and medical history were requirements to enter stores. Seniors could opt for a physical document as a substitute, which could only be obtained at a public self-service kiosk. And if they lose the document, they would again have to face a digital navigation maze of reporting the loss online.
While Chinese authorities are cracking down on stores that completely eliminate cash as a mode of payment, there is no escape from using digital devices for services and transactions for the elderly in China. Presently, a local nonprofit organisation runs classes for seniors, guiding them to navigate everyday life with a smartphone.
Why are economic policies important in facilitating digital connectivity for newcomers to the internet?
Economic policies are laws and regulations erected by governments to influence how businesses buy, sell and trade items within and among countries. These policies can affect the price of digital devices and internet subscription plans, which directly shape the digital gap drawn across populations around the world.
Policies that are dedicated to bridging the digital gap usually include building new internet infrastructure, rolling out digital literacy programmes and raising awareness about the benefits from the digital world. These policies are funded from sources like private companies or public institutions, which often allows people to enjoy the benefits of these policies at little to no financial cost.
