1、BEYOND COVID-19: THE RISE OF 5G IN CHINA MARKET INSIGHT REPORT Business Sweden 5G Opportunities in 5G in China after COVID-19 COVID-19 DID NOT PUT A BREAK ON THE 5G DEVELOPMENT PLANS The COVID-19 outbreak had a severe negative impact on the Chinese economy, leading to sharp reductionsin GDP growth e

2、stimations for 2020. However,theChinesegovernmentsinitial economicstimuluspackageswerenotbroad sweepingpolicies,insteadtheywerehighly targeted,andfocusedonspeedingupthe implementation of a handful of new development conceptscollectivelyreferredtoastheNew Infrastructure. Key among them, the governmen

3、t particularly highlighted 5G and 5G infrastructure as a way to boost economic growth and get the economy back on track. As the rest of the world continues its battle against COVID-19, China has already gained a head start in applying several 5G technologies as a way to help fight the spread of the

4、pandemic. As China looks to increase investment in 5G, there are emerging market opportunities, also for Swedish firms. KEY MESSAGES 1.The Chinese government has long considered 5G as a key industry of strategic importance for the development of the country, this focus remains strong even after COVI

5、D-19 2.China has successfully deployed several 5G-related technologies to help in the pandemic response and fight against COVID-19 3.In the wake of the virus, China is even more focused on using 5G as a way to drive high value growth in manufacturing and services, giving opportunities for foreign co

6、mpanies to supply solutions and to leverage 5G applications in China Sources: China Academy of Information & Communications Technology (CAICT), China Mobile official statement, 5G Deterministic Networking Alliance, www.C 2020 Spending on 5G by the major Chinese mobile companies Estimated value of 5G

7、 by 2025 1.1 Trillion yuan 3.2% of Chinas GDP NETWORK CAPACITY IS EXPANDING QUICKLY AS CHINA WANTS TO BECOME A WORLD LEADER IN 5G Investments in 5G in China are steadily increasing. Despite an initial dip in activity from the major telecoms in the beginning of 2020, they have been quick to get back

8、on their feet. Of the three big telecoms, China Unicom and China Telecom have announced that they are accelerating their rollout of infrastructure in 2020, planning to deploy 250,000 base stations by the end of Q3. The third and largest, China Mobile, has end-2020 target of building 300,000 base sta

9、tions. A lot of money is being put into this rollout, with China Unicom estimated to invest RMB 35 billion, China Telecom investing RMB 43.5 billion, and ChinaMobileinvestingRMB100billion. Equipment manufacturers are also getting ready for the big 5G push, with companies like ZTE raising RMB 11.7 bi

10、llion in a private share placement to boost 5G network development. China Tower is also expected to spend RMB 17 billion on 5G in 2020. China Mobiles 5G already covers 50 cities in China, and they reported having signed on 6.7 million 5G users since the launch in October to December. The goal is now

11、 to develop 70 million 5G customers this yearanddrivethesalesof100million5G terminals. CHINA MOBILE 5G TOWER ROLL-OUT With total investment of RMB 37.1 billion, the second stage of China Mobiles rollout is for 233, 442 towers. The majority (86%) of the contracts went to Chinese contractors Huawei an

12、d ZTE, but Swedish Ericsson also secured 11.5%, being the only foreign company that was granted licenses. China Mobile phase 2 5G tower rollout - number of towers by province in Mainland China 1 2 1 Source: China Mobile, Beltandroad.news, Xinhua News SHANGHAI IS ALREADY ONE OF THE MOST 5G COVERED CI

13、TIES IN THE WORLD, BUT IT PLANS TO GROW FURTHER The plan is for the suburban area of Lingang to be further promoted as a 5G free trade zone with 3,900 5G base stations by 2025, and 40,000 Internet of Things terminal connections. Development is being sped up in order to promote industrial internet an

14、d data centers. 2SHENZHEN IS THE INNOVATION POWERHOUSE OF CHINA The municipal government in Shenzhen is planning to build a total of 30,000 new 5G base stations in 2020 this after already having 15,500 5G stations in 2019. This will allow Shenzhen to continue to grow its influence as the prime tech

15、hub of China. OVERVIEW OF THE GEOGRAPHIC ROLLOUT OF 5G BY PROVINCES AND KEY CITIES MANY OTHER PROVINCES AND CITIES ALSO HAVE EXTENSIVE PLANS FOR 5G DEVELOPMENT HOW THE CHINESE 5G ECOSYSTEM ADAPTED TO COVID-19 AS AN OPPORTUNITY 5GUSECASESCARRIEDOUTINCHINA DURING THE COVID-19 OUTBREAK The outbreak of

16、COVID-19 saw all three mobile companies in China jump to action in terms of creating solutions to help fight the epidemic. Solutions for individuals to scan QR-codes to show verified travel history were created in order to facilitate quarantine rules and to track the spread of the virus across diffe

17、rent provinces. China Mobile cooperated with The First Affiliated Hospital of Kunming Medical University to launch the 5G-based “Online Platform for Free COVID-19 Diagnosis and Treatment”. China Telecom helped West China Hospital and SichuanUniversitytocompletea5G teleconsultationsystemforCOVID-19wh

18、ere doctors in West China Hospital could consult directly with 27 other hospitals transmitting large amounts of complex data at high speeds. China Unicom assisted with the provision of the 5G+4Klivestreamingofthe“Xiaotangshan Hospital”constructioninZhengzhou,allowing viewers and stakeholders all ove

19、r China to follow the development in real time. Swedens Ericsson was also quick to respond, building four base stations in two days to provide 5Gcoverageformissioncriticalhospitalsin Wuhan. Kunming Medical University Low latency video connection in a Sichuan hospital Sources: China Academy of Inform

20、ation & Communications Technology (CAICT), Ericsson website ADVICE FOR SWEDISH COMPANIES The COVID-19 outbreak acted as a catalyst in kick- starting 5G-trials in several areas that have become actual real-life implementations. The continued government support for the roll-out of 5G is perhaps an ind

21、icator that the battle against COVID- 19 will be a prolonged and gradual one, but it also indicates that the solutions and use cases that are being quickly implemented now will also find their continued use after the proverbial dust has settled. Telemedicineandbroadcastingtechnology implemented in h

22、ospitals around the country will remain also for future patients with other ailments. Image recognition technologies and processing powerthatwereappliedforcheckingthe temperature of large crowds of people could also be used for smart city and smart home applications. China is also ramping up the use

23、 of 5G in smart manufacturing and logistics two sectors that will becomethekeydriversofChinaseconomic recovery and future growth. AsthethreeoperatorsChinaMobile,China Telecom and China Unicom both cooperate and compete in identifying and developing the next essential use case, it is clear that solut

24、ions started in China will be expanded also to other markets abroad.Lookingforward,5Gwillbemore extensively applied to daily life, manufacturing and smartcitysolutions,alongwiththegradual perfection of 5G networks and the deepening of innovation in 5G applications. NEED FOR NEW 5G SOLUTIONS GOING FO

25、RWARD IN CHINA According to the Ministry of Industry and InformationTechnology,theChinese government is looking towards 5G solutions to address some of the following issues: Empowering healthcare and improving news broadcast 5G 4K/8K HD teleconsultation can be used on local level even in rural areas

26、, improving theabilityofcommunity-basedmedical organizations to cope with the outbreak and reduces the risk of cross-regional people-to- people spread. News can also be broadcast fromruralareaswithbetterquality. Strengthening pandemic control in public spaces 5G infrared thermal imaging temperature

27、measurement can be used to scan crowds of peopleinplacessuchashotelsand restaurants, entertainment venues, shopping mallsandsupermarkets,andinpublic transportation hubs. Infrared temperature- sensing precision detectors can also be used to record and track human faces and their corresponding body te

28、mperature, providing immediate diagnostics for large groups of people. Improving production and manufacturing 5GunmannedAGVs(AutomaticGuided Vehicles) can be widely applied to various scenariossuchasproducthandling, equipmentdetectionandautomatic identification.Withthemachinevision technology, 5G ca

29、n support unmanned fine control of product quality, increased testing efficiency, and provide protection for testing personnel. It will remove the need for people to be in close proximity to each other and avoid infections. If you are interested in discussing the possibilities of 5G in China, do not

30、 hesitate to contact us: E-mail: Joakim.Abeleenbusiness-sweden.se or Thomas.Larsenbusiness-Sweden.se Web: business-sweden.se/china Linked In: Business Sweden Asia-Pacific Inthemiddleofthisbigdevelopment, Swedish companies should: Evaluate if they have solutions within areas such as AR/VR, IoT, 8K vi

31、deo and drones that are relevant to the telecom industry in China Utilize the advanced stage of 5G roll-out in China as a test-bed for developing or trialling new solutions Monitor the developments in China and keep an eye on new future solutions and applications Sources: China Academy of Informatio

32、n & Communications Technology (CAICT), Ministry of Information and Technology Joakim Abeleen Market Area Director Greater China Thomas Larsen Project Manager Shanghai We help Swedish companies grow global sales and international companies invest and expand in Sweden. BUSINESS SWEDEN in Beijing 609,

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