The number of internet users in the country rose to 989 million at the end of last year.
The number grew by 85.4 million partly due to the coronavirus pandemic. Only 30 percent of those nearly 1 billion users earned the equivalent of $774 or more per month, the report said.
By the end of 2020, China had 989 million internet users, according to the Chinese government agency China Internet Network Information Center (CNNIC).
Globally, India is the second-largest country in the world in terms of the number of internet users, with about 639 million.
Nearly 782 million Chinese users have taken advantage of online shopping services. The percentage of users with a salary above 5001 yuan ($774), is about 30% of the total users.
About 94% of Chinese users used the Internet to watch online videos.
In particular, the viewing of short videos increased significantly (+100 million).
E-commerce livestreaming, which is a new form of online shopping that combines live streaming with traditional e-commerce, increased by about 123 million users to 388 million.
Online health services, after seeing steady increases throughout the past year, declined in December.
Online education tools also plummeted (from 276 million users to 215).