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‘Made in China 2025’: How 5G could put China in charge of the wireless backbone and ahead of the pack

The fifth instalment of a series on China’s hi-tech industry development master plan looks at 5G mobile technology and how it could create a more advanced digital foundation for the world’s second-largest economy

Reading Time:7 minutes
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China’s 5G roll-out could be the country’s most expensive telecommunications development, with the government estimating total investments to reach 2.8 trillion yuan (US$404 billion) from 2020 to 2030. Photo: EPA-EFE
Bien Perezin Hong KongandLi Taoin Shenzhen

In the world’s largest smartphone market, 4G is king. At the end of August, China had 1.1 billion 4G mobile subscribers – more than the populations of the US, Indonesia, Russia, Japan and Germany combined.

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The sheer scale of people who can quickly gain access to the internet on their 4G handsets has been a boon to the mainland’s digital economy, as more consumers shop, watch video, send messages, order food, book their travel and buy insurance online.

However, while China has the world’s largest mobile market by subscriber and network size, other countries have taken the lead in wireless communications technology development.

That is why China regards next-generation 5G networks – which offer faster data rates, reduced latency, energy savings, cost reductions, higher system capacity and massive device connectivity – as a chance to get out in front for the first time.

If “big data” is the new oil of the digital era, then 5G is the next set of pipes that will deliver it – and unlike previous generations, China is determined to own more of this infrastructure, giving it mastery of its own industrial future. This not only sets it up a competitive technology clash, it also raises a number of national security issues for Western governments concerned about the integrity of 5G networks.

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Relations between the US and China have become strained in the past year owing to heightened trade tensions, military showdowns and diplomatic rows – exemplified by a double-barrelled assault on Beijing’s growing economic and geopolitical heft by US Vice-President Mike Pence this month.

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