China is undergoing a significant shift in its economic development, transitioning from a high-speed growth model to one that is focused on high-quality development. This shift is being driven by the country’s commitment to leveraging 5G technology to achieve sustainable and resilient economic growth.
For more than three decades, China has experienced rapid economic expansion by relying on low-cost manufacturing and investments. However, the country is now facing new challenges, including rising labor costs and increased international competition. In response to these challenges, China has set its sights on achieving high-quality development as part of its goal to become a modern socialist country by the middle of the 21st century.
In its pursuit of high-quality development, China is shifting its focus towards economic resilience and sustainable growth driven by scientific and technological innovation. The country has made significant progress in integrating 5G technology into its economy, leading the world in 5G applications in various industries such as transportation, manufacturing, mining, agriculture, education, and healthcare.
Since the issuance of 5G commercial licenses in 2019, China has witnessed the direct and indirect economic impact of 5G commercialization, with approximately 5.6 trillion yuan and 14 trillion yuan in economic output over the past five years. With over 3.7 million 5G base stations and more than 800 million 5G mobile phone users, China currently accounts for over 52% of the global 5G market.
The integration of 5G technology has enabled China to transform its industrial base and support emerging industries such as smart manufacturing and autonomous vehicles. The country aims to build 10,000 5G factories during the 14th Five-Year Plan Period as part of its efforts to leverage 5G adoption for economic transformation and upgrading traditional industries.
Looking ahead, it is forecasted that over 50% of China’s mobile connections will be 5G by the end of 2024, with 5G’s contribution to the country’s GDP expected to reach approximately $260 billion in 2030. By the end of the decade, China’s mobile sector’s annual economic contribution is projected to exceed $1 trillion, driven by rapid 5G expansion and the evolution of 5G technology to 5G Advanced (5G-A) or 5.5G.
China’s commitment to nurturing innovative forces in 5G technology is evident, with the country being home to 42% of the world’s standard essential patents issued for 5G. This dedication to innovation is aligned with Beijing’s goal of injecting new energy into the country’s high-quality development.
As China continues to make strides in integrating 5G technology into its economy, the country is poised to create new value across industries and society. With 5G adoption projected to reach nearly 90% in China by 2030, the country’s rapid development in the 5G space depicts a commitment to continuous innovation in its modernization drive.
This article was first published by China.org.cn, China’s national online news service.
About the Author:
Alexander Ayertey Odonkor is a global economist with a keen interest in the social, environmental, and economic landscape of developed countries, emerging markets, and developing economies, particularly in Asia-Pacific, Africa, Europe, and North America.