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

China’s focus on home-grown software

In 2016, various domestic units formed an committee with one mission: Systematically replacing foreign technology from China’s IT systems, starting with government and military infrastructure and later moving to state-owned enterprises. The campaign that unfolded, known as “xinchuang” (信创, loosely translated as IT innovation) has nurtured domestic champions not only in hardware sectors, but also in software segments like databases, cloud services and operating systems.

China maintains dominance in telecoms patents since 2016

China’s globally registered invention patents grew sharply in telecommunications from 2010 to 2021. China surpassed the US in 2016 and has maintained its leading position, but its growth seems to have plateaued, suggesting that innovation in slowing down. Patent publications have fallen slightly in the EU, despite being home to two of the largest equipment vendors in the world, Nokia and Ericsson, after starting at a level close to China and the US in 2011.

Venture capital to internet companies peaked between 2016 and 2018

Between 2014 and 2018, many Chinese startups offered internet-based services, like the Internet of Things. With China’s tech crackdown of 2020-2021 and the reorientation of the economy toward the “real economy,” fewer startups focused on providing internet-enabled services.

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

Tech progress

Chinese telcos have launched the “Computing Power Internet” test network, part of a state-led national project spearheaded by the China Academy of Information and Communication Technology (CAICT), under the MIIT. The project aims to connect diverse, scattered computing resources via standardized identifiers and protocols, primarily to fuel AI development. (Source (CN): STDaily, May 17, 2025)
Zhejiang Lab has launched the first phase of a constellation of interconnected “computing satellites” for in-orbit data processing. With 100 satellites planned by 2027, this space-based computing network aims to bypass terrestrial data bottlenecks, enhancing connectivity and enabling near real-time insights for smart cities and disaster response, boosting space-to-ground digital infrastructure. (Source (CN) STDaily May 19, 2025)
Huawei launched its first personal computers running on its proprietary HarmonyOS, contributing to China’s xinchuang (信创) initiative to replace foreign technology. The launch completes Huawei's “all-scenario” ecosystem, integrating its mobile and PC platforms to create a unified domestic alternative to foreign competitors. (Source (CN): Science and Technology Daily, May 19, 2025)

Domestic dynamics

Local governments are struggling to turn data centers into drivers of growth and innovation, despite subsidized electricity. In Zhongwei, one of the nationally designated computing power clusters and the “data warehouse” of Ningxia Province, tech giant Meituan uses 60-70 percent of its data processing and computing, but local officials complain about the limited impact on the development of local technology industries. (Source: (CN): China Environment News, May 9, 2025)
Beijing has officially elevated 6G to a national strategic priority, targeting commercialization around 2030. At this year’s “Two Sessions,” the concurrent sessions of the National People’s Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC), 6G made its first appearance in a Government Work Report. International standardization work has begun, and China is accumulating technical experience, with AI-native architectures and integrated space-air-ground networks envisioned to drive “new productive forces” and transform industries. (Source (CN): 21Jingji, March 31, 2025)