The continued efforts by China to expand the end device ecosystem and build modern network connections have triggered the rapid growth of 5G technology throughout the country. Unsurprisingly, this has created new opportunities marked by the commercial use of telecom technology.
According to industry experts, 5G technology constitutes the key information structures that facilitates the general interconnection of things. It's the primary driving force for the progressive digital transformation of both society and the economy.
In 2020 China made remarkable progress in 5G development and applications in the course of designing new infrastructure. This term refers to the latest digital technologies, assets and associated physical facilities and installations like the 5G networks, artificial intelligence applications, industrial internet and big data centres. Undoubtedly, the impact of the Covid 19 pandemic on the national economy and the larger society called for faster development of new businesses, including the crucial 5G infrastructure.
According to Lyu Tingjie (who is the China Information Economics Association's vice president) said that China is now entering a modern digital age transformation. The CIEA is a research institute based in Beijing. According to tp Lyu Tingjie, China will use its 5G commercial networks and technology and strive to integrate it into far reaching sectors. The Vice President cited the Chinese government's concerted efforts to fast track the designing of new infrastructure. She expressed her profound conviction, characterized by the belief that new growth opportunities are bound to emerge faster in 20 years.
Further, Lyu Tingjie said that China's superfast 5G technology will likely provide coverage areas featuring high data speeds that can be 100 times than what previously existed; this is a virtually instantaneous response time. In this 5G era, there's much lower latency and higher reliability potential to be realized. This is bound to make the internet of things far more effective; indeed, it's likely to allow the introduction of new autonomous cars a definite reality.
According to Lyu Tingjie, China is also likely to experience a great digital transformation era characterized by such things as the 5G-enabled internet of vehicles, the industrial internet and the internet f things. The executive says that the new transformation will result in further growth opportunities that will benefit many small and medium-sized businesses. She notes that these are the entities that can explore the modern 5G applications in many vertical industries.
A veteran analyst, Zhou Xibing, who closely tracks 5G technologies, also said that 5G technology is likely to impact the current digital transformation; it's likely to influence the upgrade of most traditional enterprises. Zhou says: There's a possibility that 5G technology will uniquely combine with AI as well as the internet of things; this might boost the rapid development of online education, smart logistics, unmanned vehicles and virtual reality games. These will further enhance the competitiveness of most Chinese enterprises, allowing them to have a more significant influence in the global supply chain.
Furthermore, other officials have added their voice on this subject. China's Vice-minister of information technology and industry, Liu Liehong, recently said this: China has now taken a global lead in the fields of 5G standalone networks, innovations, applications and industrial capabilities. Data from Mr Liu's Ministry shows that by March 2021, China had already built over 819,000 5G base stations; these account for over 70%; of the current global total. Indeed, some 280 million users of mobile devices have already joined the 5G network. Again, this represents more than 80%; of the global total. At the same time, China's standard 5G essential patent declarations now represent over 38%; of the world's total.
Mr Liu also noted the huge potential for growth in the 5G development sector; he said this would not just boost the development of China's digital industrialization. Instead, Mr Liu said it would go further to promote the nation's industrial digitalization effectively. Interestingly, China is expected to spend a total of 1.2 trillion yuan ($186.6 billion) on constructing a 5G network by 2025. The country will pump in more than 2.93 trillion yuan on added economic value and 8 trillion yuan on information consumption.
A recently published Chinese Academy of Information's new white paper showed that 5G technology already generated some$ 810.9 billion yuan (linked to China's 2020 direct economic output). This also created 189.7 billion yuan on added economic value.