This development would boost digitalization in all sectors, producing over $ 1.5 trillion in growth over the same period
China’s efforts to become the first country to fully master 5G technology will be rewarded. In fact, the launch of 5G services in China is expected to stimulate new growth in the country’s technology sector amid trade tensions with the United States.
In particular, a representative of the China Academy of Information and Communications Technology (CAICT), during the global mobile internet honor held in the southern coastal city of Guangzhou, said that 5G will stimulate growth in the country’s information technology sector with 3, 3 trillion yuan ($ 479 billion) over the next five years. As a result, this development is expected to increase digitization in traditional industries, which would produce over 10 trillion yuan in growth over the same period.
Growth estimates come from the increase in 5G infrastructure spending in China
Chen Jinqiao, deputy chief engineer of the Academy, which is under the Ministry of Industry and Information Technology (MIIT), during his presentation on the development of 5G in China during the conference, said: “4G has changed the people’s lives “, and that 5G has the potential” to change society “, as different industries adopt the technology for their different needs.
5G was considered the “connective tissue” for the Internet of Things, autonomous cars, smart cities and other new mobile applications, establishing the backbone for the Internet industry. Chen’s growth estimates, therefore, come from the increase in 5G infrastructure spending in China, which is attempting to advance in the global race to implement next-generation ultrafast mobile networks.
The likely impact of 5G has already become visible in China through various high-profile projects
The first 5G commercial mobile services have already been implemented in South Korea, the United States, Australia, the United Kingdom, Switzerland, Spain and Monaco. However, it is likely that the scale of the Chinese market will reduce the combined size of those economies, nullifying any advantage deriving from the first move.
Li Zhihui, a senior consultant at the Japanese business consulting firm Nomura Research Institute, said: “The most important thing for businesses is exploring application scenarios. Fast networks or data alone cannot generate value. How to use the data [generated by 5G devices] to provide value-added services to customers is the challenge companies face. ”
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