The transformation of digital consumption, including consumption channels to online, consumer preferences to intelligence, and consumption patterns to service-oriented, has changed the driving mechanism of consumption for industrial development, played a unique role in accelerating structural transformation, improving industrial quality, and promoting industrial integration, and has become an important force to promote industrial upgrading in China. However, issues such as digital consumption infringement, technology platform monopolies, and lagging development of the service industry limit the further development of digital consumption in China. Additionally, problems such as insufficient intellectual property protection, false consumer reviews, and weak policy support hinder the driving role of digital consumption in industrial upgrading. Therefore, it"s urgently needed to systematically adjust the policy system according to the characteristics of digital consumption and its mechanism of driving industrial upgrading.