During the National Day holiday, Mr. Liu and his family made an exciting journey from Beijing to Aksu, Xinjiang. Not only did they indulge in the local cuisine, but they were also captivated by the breathtaking red cliffs and unique rock formations of the Tianshan Tomur Grand Canyon, which is renowned as the “King of Canyons.” In a heartfelt moment, Mr. Liu even held a video call with his mother back in Beijing to share his experience.
“I can’t believe there’s 5G coverage in such a remote canyon!” Mr. Liu exclaimed, proudly displaying a photo he took of a 5G base station perched atop one of the canyon’s peaks.
According to the latest statistics from the Ministry of Industry and Information Technology, China has established a total of 4.042 million 5G base stations by the end of August. This has led to extensive 5G coverage, with mobile phone users reaching 966 million, making up 54.3% of all users in the country.
Such comprehensive coverage is supported by robust technological advancements. Over the past five years, China’s proactive and strategic approach to 5G commercialization has enabled coordinated growth in infrastructure, applications, and research. As a result, the country now boasts the largest and most advanced 5G network in the world, holding 42% of global 5G patents.
However, despite the benefits of 5G—such as high speed, low latency, and extensive connectivity—there are challenges for telecom operators when it comes to operating in remote areas, which can hinder profitability. If left solely to market forces, operators often prioritize economically developed regions and high-value customers, overlooking rural and less populated areas. This pattern is commonly observed in developed Western countries, and many Chinese tourists feel its effects when visiting remote spots abroad.
To tackle this issue, there’s a concerted effort from both the supply and demand sides. Policies and market dynamics are working in tandem to bolster China’s leadership in 5G network construction and applications.
On the supply side, China has adopted proactive principles for 5G network rollout and established clear timelines for completion. Local governments have introduced over a thousand supportive policy measures over the past five years. From the Everest base camp at 6,500 meters to the depths of the Tarim Basin, and from Yongxing Island in the South China Sea to the Sanjiangyuan region on the Qinghai-Tibet Plateau, 5G coverage has now been implemented in all urban districts across the nation.
To help reduce construction costs and encourage operator participation, 5G base station co-construction and sharing have been promoted. Competing telecom giants—China Telecom, China Unicom, China Mobile, and China Broadcasting Network—have partnered to strengthen 5G infrastructure. Additionally, China Tower, established a decade ago, has played a vital role in optimizing resource sharing and reducing redundant construction. By August of this year, the sharing rate of new towers surged from 14.3% to 85.8%, leading to significant land and investment savings.
On the demand side, China has identified crucial application areas for 5G across both industry and government since the early commercialization phases. The goal is to foster a high-level development model that switches between demand-driven supply and supply-driven demand. Key sectors like autonomous driving, industrial internet, smart cities, smart healthcare, and smart agriculture are targeted for 5G applications. With initiatives like the “Dual Gigabit” network development plan and various competitions and pilot projects in “5G+ industrial internet,” 5G has become integrated into 74 out of 97 sectors of the national economy, with over 10,000 projects currently underway.
A recent white paper from the China Institute of Communications has projected that 5G will directly contribute 1.86 trillion yuan to the economy in 2023, with an additional indirect boost of about 4.24 trillion yuan.
This year, China continues to advance in areas like technological innovation, network expansion, and integrated applications. The transition to lighter 5G and 5.5G is ongoing, with coverage expanding from “county-level” to “village-level,” and the development of “5G factories” is rapidly accelerating nationwide.
By adopting a comprehensive development approach, 5G is not only fostering new business models and innovative applications but also injecting new momentum into industrial upgrades and the pursuit of high-quality economic growth.
