In its latest bid to commercialize 5G telecommunications technologies, Beijing has now set up a $724 million fund to bolster its development within the city.
The fund for 5G mobile technology is a joint project by Beijing Yizhuang International Investment, Beijing Science and Technology Innovation Investment Management Co Ltd, and the state-owned firm China Jianyin Investment Ltd.
The fund has a much broader reach than traditional science and technology development funds as it encompasses high tech firms involved all throughout the 5G industrial chain. According to the vice mayor of Beijing, Sui Zhenjiang, China does recognize 5G as a major driving force that will help the country's boost its innovation and development.
Sui made her statement at the recently held 5G industrial development and investment summit held in Yizhuang. During the event, Sui explained that Beijing is adamant in transforming itself into a leading national scientific and technological innovation center.
The city apparently has all of the necessary telecommunications infrastructure and an abundant amount of talent in the field. The official hopes that the fund will further spur innovation, which will eventually result in breakthroughs in 5G technologies.
The adoption of 5G technology in China has been quite rapid when compared to other nations. The country's three biggest telecommunications companies, namely China Mobile, China Unicom, and China Telecom, have all established a total of 4,700 5G base stations within the city of Beijing. According to the Beijing Municipal Bureau of Economy and Information Technology, the city's 5G network infrastructure should expand to the Fifth Ring road by the end of the year.
The announced 5G development fund is reportedly just the first of many similar funds, which the Beijing municipal government plans to invest. Beijing is reportedly looking to invest a total of $4.35 billion until 2020 to help build the city's 5G network.
The city also hopes to generate an income of over $29 billion from the development of 5G-related industries by 2022. This will include scientific research and enterprises involving artificial intelligence, the internet of things (IoT), big data, and other emerging technologies. According to the vice president of China Jianyin Investment, Huang Jianjun, 5G will drastically improve that way Chinese people will work and live as well as help the country become a leader in the global industry.
5G technologies also provide a huge investment and earnings opportunity for investors, which will spread throughout different industries. Huang stated that the enhancement of 5G infrastructures should positively affect industries such as manufacturing, cloud computing, materials, chips, automotive, and logistics.
