Abstract: By summarizing the theoretical connotation of digital economy, this paper suggests the constraints and challenges faced by the development of digital economy in China, and puts forward relevant policy suggestions and measures. The paper identifies three major constraints the digital economy is facing in its growth. In digital industrialization, digital economy is faced with the restriction of insufficient bottom technology and the narrow space for business model innovation in the field of Internet. Industry digitization also faces the insufficiency in information technology and real economy, and intelligent manufacturing has not become the main driving force of digital economy. Issues in data monopoly and security are increasingly urgent for digital governance. A perfect governance model has not yet been formed. Based on the major constraints, some countermeasures are presented in the conclusion.