5G Promotes Economic Development

Post Time: 2019-06-25

    On June 6, China granted 5G commercial licenses to China Telecom, China Mobile, China Unicom, and China Broadcasting Network via the Ministry of Industry and Information Technology (MIIT). Thus, 2019 has become the first year of commercial use of 5G.

    In 2018, Zhejiang Province focused on the digital economy as a primary project. As the infrastructure of the digital economy, 5G has naturally become a competitive industrial market. Different cities in Zhejiang have taken various measures, ranging from introducing guiding policies to soliciting implementation opinions. Jinhua has promulgated the Implementation Plan of Accelerating the Distribution and Construction of 5G Mobile Communication Infrastructure, which supports the construction of 5G infrastructure from the aspects of planning, construction, source sharing, and approval.

China’s 5G is competitive. In such a critical period of 5G commercial construction around the world, China’s 5G has already equipped a commercial base. This is the basis for the MIIT to grant 5G commercial licenses.

With a large population and a large economy, China has a more prosperous future for individual and enterprise 5G consumption than other countries. China’s three major telecom operators have formed a perfect mobile communication ecosystem composed of operators, equipment manufacturers, parts suppliers, and downstream application providers. In addition, the three telecom operators have established nearly 350,000 base stations supporting 5G communications, laying a solid foundation for 5G development.

According to Jinhua’s 5G construction schedule, the planning of 5G base stations will be completed by the end of 2019. In the second half of 2019, the 5G experimental network will be constructed first in Duohu Central Business District, Yiwu International Trade City, and Hengdian World Studios, which will be the 5G test districts. In 2020, the 5G network will cover Jinhua’s core urban areas and the main urban areas of its counties. Several 5G demonstration areas will be built to meet the construction, performance, and application needs of regional networks. In 2021, the 5G network will be extended to rural areas, covering most towns and administrative villages.

The development and application of 5G will bring about large social changes. For citizens, they can enjoy faster network services. Wu Hequan, academician of the Chinese Academy of Engineering, remarks that the 5G industrial internet will revolutionize traditional enterprises. In the future, new technologies and new economies such as the Internet of Vehicles, the Internet of Things, and the Internet of Medical Services will emerge one after another. The deep integration of traditional industries with 5G networks will give birth to innovative changes.

It is estimated that if 5G commercial use starts in 2020, the direct output will be about 484 billion RMB in that year. By 2025 and 2030, the direct output will increase by 3.3 trillion RMB and 6.3 trillion RMB respectively. The annual average compound growth rate in the 10 years from 2020 to 2030 will be 29%.

Under the rise of technological reform and industrial transformation in recent years, manufacturing enterprises themselves are actively embracing smart manufacturing. A large number of enterprises in Jinhua have introduced the concept of the smart factory, using information technology tools to optimize the traditional manufacturing process, reduce labor costs, improve production efficiency, and ensure product quality. (By Li Bingfeng, translated by Jin Haiqiong, edited by Kendra Fiddler)


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