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5G First in China’s Key Industrial Investment

Four Chinese ministries issued the policy document in September, called “Guiding Opinions on Expanding Investment in Strategic Emerging Industries and Cultivating Strengthened New Growth Points and Growth Poles.” As you can see below, in this document, 5G was the top recommendation.

The National Development and Reform Commission, Ministry of Science and Technology, Ministry of Industry and Information Technology, and the Ministry of Finance came together to suggest priorities for the 14th Five-Year Plan.

No surprise here. The Chinese press has been overwhelmed for months with the economic stimulus that will be provided by 5G. Western commentators often make the same claim based on Qualcomm’s claims of a $13 trillion boost. This is, of course, nonsense, but everyone in telecom is happy to see the support.

The document is “guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.” That’s an important change from last year when Xi Jinping Thought on Socialism with Chinese Characteristics. I leave the distinction to scholars.

Excerpt from the translation of the “Guiding Opinions on Expanding Investment in Strategic Emerging Industries and Cultivating Strengthened New Growth Points and Growth Poles” issued in September, 2020.

Focus on Key Industrial Investment Domains

(1) Accelerate the new generation information technology industry, and increase its quality and efficiency. Increase investment in 5G construction and accelerate the pace of 5G commercial development. Prioritize opening up base station construction to all levels of government agencies, enterprises, and public institutions.3 Research and promote the integration of 5G base stations into construction specifications for commercial and residential buildings. Accelerate research on core technologies such as basic materials, critical chips, high-end components, new display devices, and critical software. Vigorously promote the construction of key projects and major projects, and actively expand rational and effective investment. Steadily advance the integrated innovation and combined application of the industrial Internet, artificial intelligence (AI), Internet of Things (IoT), Internet of Vehicles, big data, cloud computing, blockchain, and other technologies. Accelerate the construction of new urban infrastructure based on informatization, digitalization, and intelligentization. Through emerging paths with great growth potential—such as smart broadcasting, media integration, 5G broadcasting, smart water conservation, smart ports, smart logistics, smart municipal administration, smart communities, smart housekeeping, smart tourism, online consumption, and online education and medical care—implement special actions to empower small- and medium-size enterprises’ digitalization, promote small, medium, and micro enterprises’ “migrating to the cloud and using data to empower intelligence,” and cultivate a number of pillar industries. Implement the digital village development strategy, accelerate the filling of gaps in rural Internet infrastructure, strengthen the construction of the digital village industrial structure, encourage the development of information products and applications that meet farmers’ production and livelihood needs, and develop new business models for the rural Internet. Implement the Internet+ project for agricultural products to leave villages and enter cities, promote the construction of agricultural and rural big data centers and big data construction for the entire production chain of important agricultural products, and accelerate the digital transformation of the entire agricultural production chain.

By Dave Burstein, Editor, DSL Prime

Dave Burstein has edited DSL Prime and written about broadband and Internet TV for a decade.

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