China’s digital economy development is a strategic decision to construct a new development model for the nation’s economic growth and to pave the way to fostering high-quality economic growth. Since the Chinese government first introduced its strategy for developing digital economy in 2016, the Chongqing Municipal Government has responded positively by implementing various policy initiatives. This paper examines and evaluates the overall level of Chongqing’s digital economy from 2014 to 2021 and analyses the development process through a mixed research method. The results show a growth trend of continuous improvement, with the speed of digital economy development in Chongqing significantly accelerating after 2017. However, there are still some challenges, such as weak innovation capacity, lagging digital service capability, imbalance in the internal structure of digital economy, and uneven development within the region. Therefore, Chongqing must make some efforts to support the advance of digital economy by developing infrastructure, cultivating market players, and enhancing innovation capabilities, thereby forming a solid foundation for growth.