VP Talk | China's Rise in 5G Will Help Its AIoT Development: Leon JIANG

vp talk aiot china case header In this episode of VP Talk, Leon JIANG, our vice president of Milesight, introduces the developmen of 5G and AIoT in China with helpful insights. What is the case in China when we talk about the AIoT?

In 2019, China granted 5G licenses for commercial use. And since then, China's continued efforts to build network connections and expand the end device ecosystem have fueled the rapid growth of 5G applications in the country, creating new opportunities for the commercial use of the latest telecom technology. 2021 is the year that China becomes the epicenter of 5G innovations globally. And China has vigorously promoted 5G integration with other industries and its application in multiple fields, including AI and IoT. This will ensure that China's competitive position in the market is consolidated.

China has taken a lead globally, in terms of 5G standalone networks, industrial capabilities as well as applications and innovations. As of the end of March of this year, about 280 million mobile device users have joined the 5G network, accounting for over 80 percent of the world's total. The Chinese telecom companies have overall nearly 350 million 5G subscribers. And the country's standard essential patent declarations for 5G account for more than 38 percent of the world's total. That means few countries are able to manufacture 5G core equipment at a very competitive market cost without the supports from China.

However, China is not without its shortcomings. For example, China’s millimeter wave 5G applications and mobile terminal operating systems are still in a learning process from its advanced counterparts around the globe. Although it is reported that China has improvement on research quality as well as AI development, we are still lagging behind our counterparts of U.S. on the core technologies, tools and hardware. In fact, most of the world's leading AI semiconductor chips are made by U.S. companies such as Nvidia, Intel, and AMD. When it comes to IoT industry, this problem is present as well.

vp talk aiot china case

The U.S. digital economy innovation is based more on underlying technology innovation which is actually a driving force and inspiration for business model. By stressing the equal emphasis on both these, the U.S. is presenting a landscape of technology-driven economic development. As for the depth of industry chain, the U.S. views information technology as a general technology and places greater emphasis on its application in various fields. Through this approach, the U.S. has rapidly formed a deep layout by expanding upstream and downstream of the digital economy industry chain. By doing so, the U.S. has gradually gained the ability to continuously innovate and evolve to better leverage the overall drive of information technology. At present, the smart home and other underlying technologies (such as protocols and chips) are mainly dominated by the developed countries, led by the United States. Comparatively, China is more to do with hardware and commercial applications.

Overall, China’s rapid technology development coincides with constrains. We should not be arrogant because of what we have achieved so far, nor do we need to underestimate our own capabilities, for to do practical work is most important .

So, the core of the digitalization is 5G?

Excatly, and that is in some ways our biggest challenges and opportunities at the same time. As President Xi pointed out, “The opportunity for innovation success is like a silver lining on a cloud. But we should gather our courage and have faith in ourselves to make it happen.

From scratching to leading, China’s wireless industry has undergone such a transformation in a short time and on a large scale. From nobody in 1G era to somebody taking a lead in 5G era, China has achieved stronger discourse right in terms of industrial standards and chain supporting system.

After the emergence of cellular mobile communications technology in the 1970s, China began to approach this high-tech field, and it was not until the late 1980s that the cellular mobile communications network was officially launched. The start of mobile communications in China is relatively late compared to the world's leading countries.

In the 1G era, China was basically absent and could be said to be a blank.

In the 2G era, the country vigorously developed mobile communication, and the mobile network coverage and user penetration rate increased rapidly, allowing ordinary people to use cell phones.

In the 3G era, mobile communications and Internet technology were fully integrated, and smartphones emerged. TD-SCDMA standard with China's independent intellectual property rights became one of the three major international standards for 3G, achieving a "zero breakthrough" in China's 100-year communications history.

In the 4G era, we have built the world's largest 4G network, and the entire mobile communications industry chain has grown. Huawei and ZTE have become the world's leading mobile communications equipment suppliers. China Telecom, China Mobile and China Unicom are at the forefront of global operators.

In 5G era, 5G technology will be widely combined with AI and IoT to boost the fast development of emerging fields such as smart cities, unmanned vehicles and telemedicine, which will further enhance the core competitiveness of China and allow us to have a far greater say in the global supply chain.

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China's 5G products are becoming increasingly mature, and the industry has basically reached the level of commercial use. On 6th June, 2019, China officially granted 5G licenses for commercial use. And in the same year, on 1st November, a national wide commercial use of 5G was practically launched. In fact, by the end of 2019, the number of 5G base station was projected at over 130,000. And as of the end of June of 2021, more than 961,000 5G base stations had been installed in China, covering all cities at prefecture level and above. Based on the plan jointly unveiled by 10 government bodies on July 13, Wang Zhiqin, the vice president of the China Academy of Information and Communications Technology (CAICT), said that the development of 5G in China is moving toward a “no-man’s land” where few mutual experience could be gained from international counterparts in terms of technology, industry and application. China’s 5G industry application should be gradually from the single business exploration, pilot demonstration stage to the replication and promotion stage.

Looking into the next three years, 5G industry will enter a critical period for its applications as well as the accelerated transformation and growth of enterprises in the sector. 5G faces a historic opportunity to promote the transformation of China into a smart society. We believe, with supportive government departments and related companies, gradually, 5G applications will “set sail on a great voyage” and be the domain force to take our digital transformation into next level.

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