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5G Expected to Drive China's Direct Economic Output to Over USD900 billion by 2030

By Editing NAI
06/14/2017 8:57 p.m.

The next generation of mobile networks and wireless systems, known as 5G, is to lift China’s direct economic output, economic added value and job opportunities substantially, claims a white paper on economic and social impact of 5G mobile technology.

‘White Paper on Economic and Social influence of 5G’ officially released by China Academy of Telecommunication Research (CATR) says 5G mobile technology is expected to drive China’s direct economic output to CNY6.3 trillion (USD920 billion), economic added value to CNY2.9 trillion and job opportunities to 8 million by 2030. It also calls on all relevant departments should take precautionary measures and deploy network infrastructures ahead of time.

5G, as one of general purpose technologies, will help construct the core infrastructure for digitalization transformation of economy and society in an all-round way, and push China’s digital economy development to a new stage, including from online to offline, from consumption to production and from platform to ecology, the white paper pointed out.

Liurong Wei, director of development and economic research department at CATR’s policy and economics research institute stated that the manufacturing sector would be an essential growth driver in 2020. The 5G network investment by telecom operators and the terminal purchasing expenses of all kinds of users are estimated to account for 80 percent of total 5G contribution to GDP. By 2030, the services sector would become the key growth driver. Revenue flow from telecom operators and all sorts of information services added value would feature highly, up to 90 percent, in 5G contribution to GDP in 2030, the CATR’s white paper predicts.

In terms of indirect contribution, 5G would drive total output to CNY10.6 trillion, economic added value to CNY3.6 trillion and job opportunities to 11.5 million in the next 13 years. For fully releasing the development potential of 5G, the white paper calls for China to deploy overall policy planning, accelerate the 5G industrialization process, set up advance network infrastructure and deepen 5G’s integrated applications in various walks of life.

Source: yicaiglobal.com



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