At a glance: Eight central government agencies, led by the Ministry of Industry and Information Technology (MIIT), released a three-year plan for the construction of Internet of Things (IoT) infrastructure. The policy defines IoT as sensor and communications technology connecting people, machines and objects, which can offer services in the form of information sensing, transmission and processing. The following are listed as key goals for 2023:
- Advance the level and market competitiveness of key technologies such as high-end sensors, IoT chips, IoT operating systems and new short-range communications
- Promote the growth of 10 leading IoT enterprises, each with revenue of over CNY 10 billion and able to spur on the development of IoT SMEs
- Improve the IoT standard system, revise over 40 national or industry standards
MERICS comment: IoT technology falls under the scope of “new infrastructure” such as 5G, 6G, IPv6, big data, etc. China hopes to develop a competitive edge in these areas to accelerate the country’s modernization, boost innovation and productivity, as well as counter the looming challenges of an aging population and rising wages.
Drawing on China’s position as an electronics manufacturing hub, as well as its strong consumer demand, China’s IoT industry has developed in leaps and bounds. It has been estimated that China’s IoT connections account for 30 percent of the global total. Alibaba, Huawei, Xiaomi and Baidu have all rolled out large-scale consumer IoT platforms.
Chinese firms have also established numerous collaboration projects with European firms on IoT technology. Such cooperation is crucial for China's IoT enterprises as many still rely on foreign technology in key areas. Officials are most interested in developing local capacities in areas such as intelligent sensing technologies for multiple sources and massive data access, MEMS sensors and IoT operating systems. Foreign businesses will continue to play an important supplier role as the industry expands.
Policy name: Notice on Issuing the "Three-year Action Plan for the Construction of New Internet of Things Infrastructure (2021-2023)" (关于印发《物联网新型基础设施建设三年行动计划（2021—2023年）》的通知) (Link)
Issuing bodies: MIIT, CAC, MOST, MEE, MOHURD, MOA, NHC, NEA
Date: September 29, 2021