China, holding the second position in global computing power, escalates expansion efforts as the AI competition intensifies
China Accelerates Digital Transformation with Focus on 5G and Data Infrastructure
At a recent news conference in Beijing, Liu Liehong, the director of the National Data Bureau, reaffirmed China's commitment to building a world-leading national data infrastructure. The focus is on creating a convenient, efficient, autonomous, secure, and globally competitive digital landscape.
China has vowed to further strengthen the role of digital infrastructure as an economic growth engine. The country's data industry is expected to contribute significantly to the country's economic growth in the coming years. In fact, the data industry in China's Yangtze River Delta region, including cities like Shanghai, Suzhou, and Hangzhou, has formed a multi-tier, full-chain data industry ecosystem.
One of the key drivers of this growth is China's 5G roll-out. By mid-2025, China had constructed over 4.55 million 5G base stations and achieved widespread urban 5G coverage, supported by massive government and telecom investments exceeding $58 billion in 2023. This expansive infrastructure underpins China’s leading position in digital transformation, enabling smart factories, autonomous vehicles, and other intelligent industrial applications.
According to the National Development and Research Institute, China's data industry is projected to maintain high growth in the coming years, contributing about $2 trillion or 8.3% of GDP by 2030. Manufacturing alone is expected to account for 40% of this impact due to integration with AI and IoT technologies.
Looking forward, China plans to intensify digital infrastructure development by accelerating data element market reforms and building a national integrated data market to enhance data circulation, utilization, and value extraction. The government prioritizes computing power expansion, gigabit broadband access (with 226 million users already), and breakthroughs in core technologies such as AI, chips, and homegrown operating systems, all fueling a "Digital China."
The Eastern region, due to its strong economic base, is slated to expedite new infrastructure investments, including further 5G deployment and AI computing power centers. Xia Bing, the deputy director of the National Data Bureau, stated that China will foster a market-driven ecosystem in its data industry.
The data industry output in China has increased by 117% in the past year, reaching 5.86 trillion yuan (US$816.4 billion). China trails only the US in global computing power, a testament to the rapid progress made in this area. The country will continue to deploy large-scale facilities to support the digital economy and scientific and technological innovation.
In conclusion, China's multi-pronged strategy, focusing on 5G, data infrastructure, and technological advancements, illustrates its commitment to leveraging digital transformation as a foundation for broader economic growth and technological leadership.
Read also:
- Rapid Expansion in Organic Rice Protein Market Projected at 15.6% Through 2034
- Kenya broadens economic zones featuring Olkaria's geothermal energy advantage
- Century Lithium Announces Production of Battery-Grade Lithium Metal Anodes from Angel Island Lithium Carbonate
- Truck manufacturers directed to cease enforcing immediate limp mode for low DEF emission regulations, according to EPA.
