Digital connectivity

China’s government has long considered the internet essential infrastructure to upgrade its industry, boost competitiveness and for potential military uses. A combination of industrial policy, protectionism and entrepreneurship have led to the establishment of important telecommunications companies – chief among them, Huawei.  

China was an early mover in 5G, currently the most modern mobile connection to the internet. Huawei and ZTE took part in early standardization meetings on 5G, and China deployed 5G in 2018, before most Western countries started their roll-out. Huawei’s technology rivals that of established equipment suppliers Nokia and Ericsson and is usually cheaper. 

Now, the world is watching 6G, for which 2025 will be an important year. Huawei is already set to play an important role in this future key technology.

China’s strategy of building infrastructure first, assuming demand will follow, has worked very well especially in mobile and broadband internet. In disruptive internet technologies, this strategy is not possible. For instance, Chinese companies still trail the US satellite internet provider Starlink, which pioneered low Earth orbit (LEO), high-bandwidth satellite internet. China launched the first satellites in 2024 for Qianfan, an eventual globe-spanning internet network to rival Starlink, one of three networks intended to be operational in China by 2025.

Other technologies have seen less innovation in recent years but are still a focus of US-China tech competition. Submarine communications cables, for instance, have an average life cycle of 17 years, with recent innovation mostly focused on cost effectiveness. Since most traffic passes through submarine cables, both the US and China are wary about spying, and have thus competed for the location and control of many of these cables.   

Graphics dashboard

US’s Starlink still dominates the satellite market around the world
US’s Starlink still dominates the satellite market around the world

China is hoping to compete with US SpaceX’s Starlink, which operates in over 120 countries. Chinese provider SSST, which operates the SpaceSail constellation and is currently active in only six countries, aims to expand to at least 30 more by the end of this year, 2026. At the moment, no Chinese satellite internet provider can deliver broadband speeds to even a small number of users worldwide, though China is set to launch a huge number of internet satellites in the coming years.

China speeds up launches despite hurdles
China speeds up launches despite hurdles

China is accelerating its space launches despite structural, operational, and technological constraints. Between 2018 and 2022, China had a higher number of successful launches than any other country. This started with the construction of the Beidou satellite navigation system, with ten Long March rockets placing 18 satellites.

The US dominates launches around the world
The US dominates launches around the world

The US dominates space launches and especially launched objects globally, in part due to reusable, high-capacity rockets like SpaceX’s Falcon series. China still relies on single-use Long March rockets with limited payload capacity. Without access to reusable, high-capacity rockets, China faces major challenges in scaling mega-constellations like its SpaceSail and Guowang to meet International Telecommunications Union requirements.

Digital Connectivity in China: Timeline of crucial events

Development
Policy/regulation

China's Big Three state-owned telecommunication operators (China Mobile, China Unicom and China Telecom) launch 5G networks in China, almost nine months before the launch of 5G in Europe.

Oct 2019

China establishes the SOE China Satellite Network Group (SatNet) to drive the internet satellite megaconstellation GuoWang (China Satellite Network), China's state megaproject for satellite internet.

Apr 2021

NDRC launches "Eastern data, Western computing" megaproject to make China’s computing power infrastructure more efficient &sustainable, moving data processing to inland provinces with cheaper land.

Feb 2022

Huawei presents 5G-Advanced (also called 5.5G) at the Mobile Broadband Forum in Doha. 5G-A is an innovation between 5G and 6G. Huawei was the first to develop a complete product portfolio for 5.5G.

Oct 2023

National Research Centre of Parallel Computer Engineering and Technology (Wuxi) discloses details on supercomputer Sunway OceanLight, built despite US sanctions, may be one of three exascale machines.

Dec 2023

China Mobile conducts the world's first low earth orbit (LEO) satellite test using 6G technology, driving forward its plans for an integrated terrestrial-space network with high speed and low latency.

Feb 2024

A team from Beijing University of Posts and Telecommunications says it has built the world's first 6G field test network, an important step toward commercialization which Beijing wants by 2030.

Jul 2024

China submits two spectrum allocation filings to the UN’s International Telecommunication Union (ITU), revealing plans for a megaconstellation of ca. 13,000 internet satellites.

Sep 2020

The powerful Central Commission for Cybersecurity and Informatization publishes Beijing’s most important strategic blueprint for the digital transformation, the 14th Five-Year Plan (2021-2025).

Dec 2021

Second Institute of China Aerospace Science and Industry Corporation (CASIC) tests real-time wireless transmission using terahertz technology, important for 6G achieving 100Gbps on a 10GHz bandwith.

Apr 2023

Details emerge about the supercomputer Tianhe Xingyi (Tianhe-3), developed by the National University of Defense Technology despite US export restrictions. May be it is the world's most powerful.

Nov 2023

China has 3.2 million 5G base stations, 87 percent of the goal set in the 14th FYP. At the end of 2021, the EU-27 had only 256,000 base stations, according to the EU's 5G Observatory.

Dec 2023

Shanghai Lanjian Hongqing Technology Company (link to private rocket maker Landsoft) files with ITU to launch Honghu-III, a network of 10,000 satellites, might be the third Chinese megaconstellation.

May 2024
Recent developments
  • China filed an ITU application for 203,000 satellites to expand its space programs, mostly driven by state and commercial actors. The new Institute of Radio Spectrum Utilization and Technological Innovation (无线电创新院) holds 95 percent of the applications, with the rest coming from Shanghai Spacecom (SpaceSail), China StarNet (Guowang), and China Mobile. (Source (CN): STDaily, January 11, 2026) 
  • The NDRC, together with the National Data Administration (NDA) and other ministries, released a roadmap for smart cities. The plan targets over 50 cities for full digital transformation by 2027. It requires them to build AI models for disaster and infrastructure monitoring, integrate data across state agencies, and expand digital services. (Source (CN): NDRC, October 31, 2025) 
  • After a seven-month pause, the Shanghai-backed mega-constellation SpaceSail (千帆) launched 18 satellites in October 2025, bringing the total to 108 SpaceSail satellites in orbit. The project is behind schedule (aiming for 648 satellites in 2025 and over 10,000 by the 2030s) due to challenges in manufacturing and launch capacity. (Source (CN): Innovation Academy for Microsatellites (CAS), October 17, 2025). [See also our latest CTO report “Orbital geopolitics: China's dual-use space internet” by Altynay Junusova, Rebecca Arcesati, and Antonia Hmaidi] 

Digital connectivity in China: Profiling the actors

A young person attempts to use the satellite network and satellite communication function of a mobile phone in Shanghai, China on August 28, 2025.

Laser Starcom (极光星通): A breakthrough for optical intersatellite communications?

The Chinese commercial aerospace firm Laser Starcom exemplifies how state and private capital, science and industry are working together to spur breakthroughs in satellite communications. Laser-based satellite communication offers several advantages compared to transmissions over radio waves, especially increased bandwidth. Starcom’s approach in this regard promises better cost control. 

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