A massive spending spree to roll out 5G mobile network – China’s latest business and technology news

Business & Technology

A summary of the top news in Chinese business and technology for June 14, 2017. Part of the SupChina newsletter, which packages the top business, political, and cultural news about China into a 360-degree view of the country that you can read in just a few minutes a day. Subscribe here.

FILE PHOTO: The headquarters building of Anbang Insurance Group are pictured in Beijing, China, August 25, 2016. REUTERS/Jason Lee/File Photo

In December 2016, China Mobile announced it would begin testing a 5G (fifth-generation) mobile network in 2018 that would greatly speed up streaming and downloading to phones. The country currently has more than a billion mobile phone subscribers, around three-quarters of whom are on a 4G network. According to Caixin, a new report by the Ministry of Industry and Information Technology, China’s telecom regulator, says that the rollout of 5G will contribute nearly $1 trillion to the economy, create 8 million jobs, and result in a “massive spending spree”  that will “begin in earnest in 2020 when carriers and individual enterprises are expected to spend 274 billion yuan [$40.3 billion] before spending starts to recede in 2024.”

Caixin says that this spending “will directly benefit domestic manufacturers like Huawei and ZTE, as well as global giants like Ericsson and Cisco Systems,” but if China pioneers the global spread of 5G, it’s likely that Chinese companies will gain the most.