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China’s economy was hit hard by the pandemic. Its 5G ambitions could be crucial to its recovery
- President Xi Jinping has put 5G networks and data centres at the top of China’s plans to spend on ‘new infrastructure’
- The renewed push for the country’s ambitions to become a global leader in 5G is part of plans to help cushion the economic impact of the coronavirus outbreak
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China’s economy declined sharply in the first two months of the year under the weight of the coronavirus pandemic, with industrial production, retail sales and asset investment all declining far more than analysts expected.
In this bleak economic landscape, President Xi Jinping has put 5G networks and data centres at the top of the country’s plans to spend on “new infrastructure”, hoping to cushion the impact of the outbreak.
The next-generation networks and big data centres are considered fundamental elements of China’s new digital infrastructure, aimed at driving greater connectivity for consumers and businesses across the country.
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Despite the hit taken by many sectors in China’s economy, China has maintained its leading role in 5G due to massive state-backed investment and growing enthusiasm from consumers and companies, leading industry group GSM Association (GSMA) said in a report last week.
In separate announcements last month, the Central Politburo of the Communist Party and the Ministry of Industry and Information Technology (MIIT) said the country’s 5G network development should be accelerated.
On Tuesday, MIIT again urged telcos to speed up the construction of the 5G network to reduce the impact of the coronavirus pandemic, encouraging local governments to provide resource support needed for the construction and to integrate the digital infrastructure into their land use planning.
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