A livestream host promotes toys during a livestream in Qiaoyun village, Yunhe county, Lishui. [Photo/WeChat account: tonghuayunhe]

A total of 21 villages and six towns in Lishui, East China's Zhejiang province, made the 2020 list of Taobao Villages and Taobao Towns in early September, according to AliResearch.

As defined by the research arm of Alibaba Group, a Taobao Village is an administrative village where the annual value of e-commerce transactions is at least 10 million yuan ($1.48 million). In addition, at least 10 percent of households in the village must be engaged in e-commerce or there must be at least 100 active online shops on Alibaba platforms that are operated by residents there.

According to AliResearch, a Taobao Town must have at least three Taobao Villages earning over 30 million yuan in annual e-commerce revenue and at least 300 active online shops.

The villages and towns on the lists reflect how the digital economy transforming rural areas throughout China.

Qiaoyun village in Yunhe county, Lishui, which was listed as a Taobao Village this year, is a typical example of a rural area with a flourishing digital economy.

Li Yanbao, Party secretary of the village, said that the village was home to more than 130 e-commerce entities, which generated nearly 900 million yuan in e-commerce sales in 2019.

The rise of e-commerce has led to the development of several supporting industries, including logistics. ZTO Express, one of China's major express delivery companies, set up a branch in Qiaoyun village in 2018.

"We chose Qiaoyun due to its abundant resources and strong potential in the e-commerce sector," said Chen Binhua, a manager at the village's branch.