5G Contribute $1 Trillion to Chinese Economy

A new generation of 5G wireless networks is expected to directly contribute 6.3 trillion yuan （$927 billion） to Chinas economy by 2030， a new government report says.

A new generation of 5G wireless networks is expected to directly contribute 6.3 trillion yuan （$927 billion） to Chinas economy by 2030 as a boom in demand for high-speed services creates new companies and millions of jobs， and generates huge sales of networking equipment.

China is expected to start rolling out its commercial 5G networks in about 2020 following a recent announcement by leading carrier China Mobile Ltd. that it would start testing the technology next year.

The technology is up to 20 times as fast as current 4G networks， and should make applications like video streaming and the downloading of large files even faster. The high-speed technology is also expected to feed an emerging generation of smart devices that can talk with each other and their owners， and power a new host of functions and apps that feed off big data.

Within its nearly $1 trillion economic contribution， the new technology is expected to create 8 million jobs and economic added value of 2.9 trillion yuan by 2030， according to a report released by a research arm of the Ministry of Industry and Information Technology， Chinas telecom regulator.

The report said the build-out of 5G networks by Chinas main three wireless carriers and individual enterprises for their internal networks is expected to result in a massive spending spree of more than 520 billion yuan. That spending will begin in earnest in 2020 when carriers and individual enterprises are expected to spend 274 billion yuan before spending starts to recede in 2024.

That buying spree will directly benefit domestic manufacturers like Huawei Technologies Co. Ltd. and ZTE Corp.， as well as global giants like Ericsson and Cisco Systems Inc.

The build-out will also lead to an explosion in new services， which are expected to be worth 2.6 trillion yuan by 2030， or nearly half of the total figure of 5Gs economic contributions by that time， according to the research report.

China is the worlds largest mobile market， with one wireless account for nearly all of the nations 1.3 billion people. The nation was a relative latecomer to current 4G technology， launching services in 2014， or as much as three to four years later than major Western markets. Part of the delay was caused by Beijings desire to develop homegrown technology that it could sell to other developing markets， which required more time for testing.

Since then， China has largely abandoned that strategy and instead has joined the organization that helps to develop unified global standards in its own attempt to influence those standards. That effort bore some of its first fruit late last year， when a China-backed technology was selected as a core part of the global standard for 5G.

Xiongan Zone to Offer New 5G Network

Shijiazhuang Zhengding International Airport is the closest airport to the Xiongan New Area. The Civil Aviation Administration of China plans a new terminal in Xiongan where passengers whose flights take off from Shijiazhuang can obtain boarding passes and check in baggage before taking a shuttle or high-speed train to the airport.

Chinas leading telecom operators have promised to roll out their next-generation 5G network in the Xiongan New Area， the recently announced economic powerhouse near Beijing， as more infrastructure projects， including an airport terminal， are set to follow.

The decision comes just 10 days after the central government announced surprise plans to create the Xiongan New Area， 130 kilometers south of Beijing， to relieve pressure on the capitals infrastructure.

Two of Chinas three largest telecom corporations， China Mobile Ltd. and China Telecom Corp. Ltd.， said in statements that they would first trial their 5G internet service in the new zone， to help “develop it into a green and smart city.” A third major operator， China Unicom， announced it would construct a high-standard telecoms network and ensure the best resources would be put into the project.

All three communications giants have established teams specifically to deal with Xiongans development， according to their statements.

The move will be another major step forward in Chinas rollout of the 5G network， an upgraded telecoms technology that is faster， more efficient and stable. There has been no timeline to launch the network as yet， but China Mobile said it will start 5G trials in 2018， with a target to commercialize it by 2020， while China Telecom called for resource sharing among rivals to build the network.

As a future economic center， Xiongan， which was borne out of three once-obscure counties where only a feeder railway passes， requires a huge expansion in transport infrastructure.

Shijiazhuang Zhengding International Airport， in the capital city of Hebei province where Xiongan belongs， is so far the closest airport to the new zone， within two hoursdrive from the zone. Airport managers plan to build a new terminal in Xiongan where passengers whose flights take off in Shijiazhuang can obtain boarding passes and check in baggage before taking a shuttle or high speed train to the airport， according to a report in the Civil Aviation Administration of Chinas CAAC News.

The airport management team will also coordinate with the rail operator to increase trains between the airport and Xiongan， said Li Wu， general manager of Hebei Airport Management Holding Co. Ltd.， CAAC News reported.

Although details of the infrastructure plans havent been specifically outlined， especially regarding sources of investment， He Lifeng， the director of Chinas top economic planner the National Development and Reform Commission， said that the new economic zone will take in funds from the private sector.

China to Commercialize 5G Technology by 2020

Chinas major mobile network operators including China Mobile， China Unicom and China Telecom are to commercialize 5G technology by 2020， with basic research and testing to be complete by 2018， according to a report.

Leading Chinese telecom equipment providers like Huawei， and ZTE are accelerating their research in 5G technology， and cooperative efforts between Chinese companies and their European counterparts are also underway.

A joint working group between universities， research institutes and enterprises has been set up to promote the study of 5G in China and the formation of global standards， the chief engineer of the Chinese Ministry of Industry and Information Technology （MIIT）， Zhang Feng， said.

As the next generation mobile communication technology， 5G is expected to raise network speeds 1，000 times， bringing vast business opportunities， especially in the Internet of things industry. It may also transport virtual reality， holographic images and other new technologies direct to peoples lives.

At present， China has the worlds largest 4G mobile network， with 160 million users.