Opinion
Dawn of a New Generation
5G commercialization will gear up the rapid development of China's Internet of Things and buoy China's economic development
Editorial  ·  2019-06-17  ·   Source: NO.25 JUNE 20, 2019

On June 6, the Ministry of Industry and Information Technology issued basic telecommunications business licenses to China Telecom, China Mobile, China Unicom and China Broadcasting Network, and approved them to operate the fifth generation of digital cellular mobile communication business, marking the official opening of 5G commercial use in China.

This truly represents the rise of China's information industry since it wasn't deeply involved in the formulation of industry standards during the 2G, 3G or 4G periods. China's 5G standard essential patents have accounted for more than 30 percent of the total number worldwide. It has established competitive advantages in terms of 5G terminal equipment support, as enterprises with independent intellectual properties represented by Huawei and ZTE claiming obvious competitive advantages in the global 5G market.

5G commercialization will gear up the rapid development of China's Internet of Things and buoy China's economic development. Through the construction of a digital China, the country will enter a new period of development in areas such as communications, transportation, healthcare, education, scientific research, military and manufacturing, which will further promote the high-quality development of China's economy and social progress. According to a report on the contributions of 5G industries released by the China Academy of Information and Communications Technology, the total economic output during 2020-25 directly driven by China's 5G commercial use will reach 10.6 trillion yuan ($1.53 trillion), and by 2025, 5G will directly create more than 3 million jobs.

China adheres to a 5G path featuring independent innovation, opening up and cooperation. In the technical trial stage, many foreign companies such as Nokia, Ericsson, Qualcomm and Intel have been deeply involved. China will, as always, welcome foreign companies to actively participate in its 5G network construction and its application promotion hereafter and will share the fruits of its 5G advances with the world.

For foreign companies, the biggest uncertainty for sharing China's 5G development results is the Donald Trump administration. The essence of its current curbs on Huawei is an attempt to stem related industries in China. Its containment measures have already affected international companies cooperating with China.

However, the global momentum of 5G cannot possibly be stopped by the Trump administration. International cooperation is only growing deeper and deeper as China officially starts its new 5G era.

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