Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
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The tech investment push is part of a fiscal package waiting to be signed off by the National People’s Congress, which convenes this week
This initiative will reduce China’s dependence on foreign technology, echoing objectives set forth previously in the ‘Made in China 2025’ programme
A conductor rehearses the military band on the sidelines of the National People’s Congress in Beijing’s Great Hall of the People in March of last year. China’s legislature is expected to sign off on a massive tech-led stimulus plan. Photo: AP
Beijing is accelerating its bid for global leadership in key technologies, planning to pump more than a trillion dollars into the economy through the roll-out of everything from next-generation wireless networks to artificial intelligence (AI).
In the master plan backed by President Xi Jinping himself, China will invest an estimated 10 trillion yuan (US$1.4 trillion) over six years to 2025, calling on urban governments and private hi-tech giants like Huawei Technologies to help lay 5G wireless networks, install cameras and sensors, and develop AI software that will underpin
and Huawei to SenseTime Group at the expense of US companies.
As tech nationalism mounts, the investment drive will reduce China’s dependence on foreign technology, echoing objectives set forth previously in the “Made in China 2025”
programme. Such initiatives have already drawn fierce criticism from the Trump administration, resulting in moves to block the rise of Chinese tech companies such as Huawei.
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“Nothing like this has happened before, this is China’s gambit to win the global tech race,” said Digital China Holdings chief operating officer Maria Kwok, as she sat in a Hong Kong office surrounded by facial recognition cameras and sensors. “Starting this year, we are really beginning to see the money flow through.”
The tech investment push is part of a fiscal package waiting to be signed off by China’s legislature, the National People’s Congress, which convenes this week. The government is expected to announce infrastructure funding of as much as US$563 billion this year, against the backdrop of the country’s worst economic performance since the Mao era.
The nation’s biggest purveyors of cloud computing and data analysis Alibaba, the parent company of the South China Morning Post, and Tencent Holding will be linchpins of the upcoming endeavour. China has already entrusted Huawei, the world’s largest telecommunications equipment supplier, to help galvanise 5G. Tech leaders including Pony Ma Huateng and Jack Ma are espousing the programme.
Maria Kwok’s company is a government-backed information technology systems integration provider, among many that are jumping at the chance. In the southern city of Guangzhou, Digital China is bringing half a million units of project housing online, including a complex three quarters the size of Central Park in New York City. To find a home, a user just has to log on to an app, scan their face and verify their identity. Leases can be signed digitally via smartphone and the renting authority is automatically flagged if a tenant’s payment is late.
China is no stranger to far-reaching plans with massive price tags that appear to achieve little. There is no guarantee this programme will deliver the economic rejuvenation its proponents promise. Unlike previous efforts to resuscitate the economy with “dumb” bridges and highways, this newly laid digital infrastructure will help national champions develop cutting-edge technologies.
“China’s new stimulus plan will likely lead to a consolidation of industrial internet
providers, and could lead to the emergence of some larger companies able to compete with global leaders, such as GE and Siemens,” said Nannan Kou, head of research at BloombergNEF, in a report. “One bet is on industrial internet-of-things (IoT) platforms, as China aims to cultivate three world leading companies in this area by 2025.”
China is not alone in pumping money into the technology sector as a way to get out of the post-coronavirus economic slump. Earlier this month, South Korea said AI and wireless communications would be at the core of it its “New Deal” to create jobs and boost growth.
Nothing like this has happened before, this is China’s gambit to win the global tech raceMaria Kwok, COO at Digital China Holdings
The 10 trillion yuan that China is estimated to spend from now until 2025 encompasses areas typically considered leading edge, such as AI and IoT, as well as items such as ultra-high voltage lines and high-speed rail, according to the government-backed China Centre for Information Industry Development. More than 20 of mainland China’s 31 provinces and regions have announced projects totaling over 1 trillion yuan with active participation from private capital, a state-backed newspaper reported on Wednesday.
Separate estimates by Morgan Stanley put new infrastructure at around US$180 billion each year for the next 11 years – or US$1.98 trillion in total. Those calculations also include power and rail lines. That annual figure would be almost double the past three-year average, the investment bank said in a March report that listed key stock beneficiaries including companies such as China Tower Corp, Alibaba, GDS Holdings, Quanta Computer and Advantech Co.
Beijing’s half-formed vision is already stirring a plethora of stocks, a big reason why five of China’s 10 best-performing stocks this year are tech plays like networking gear maker Dawning Information Industry and Apple supplier GoerTek. The bare outlines of the master plan were enough to drive pundits toward everything from satellite operators to broadband providers.
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It is unlikely that US companies will benefit much from the tech-led stimulus and in some cases they stand to lose existing business. Earlier this year, when the country’s largest telecoms carrier China Mobile awarded contracts worth 37 billion yuan for 5G base stations, the lion’s share went to Huawei and other Chinese companies. Sweden’s Ericsson got only a little over 10 per cent of the business in the first four months. In one of its projects, Digital China will help the northeastern city of Changchun swap out American cloud computing staples IBM, Oracle and EMC with home-grown technology.
It is in data centres that a considerable chunk of the new infrastructure development will take place. Over 20 provinces have launched policies to support enterprises using cloud computing services, according to a March research note from UBS Group.
Tony Yu, chief executive of Chinese server maker H3C, said that his company was seeing a significant increase in demand for data centre services from some of the country’s top internet companies. “Rapid growth in up-and-coming sectors will bring a new force to China’s economy after the pandemic passes,” he told Bloomberg News.
From there, more investment should flow. Bain Capital-backed data centre operator ChinData Group estimated that for every one dollar spent on data centres another US$5 to US$10 in investment in related sectors would take place, including in networking, power grid and advanced equipment manufacturing. “A whole host of supply chain companies will benefit,” the company said in a statement.
There is concern about whether this long-term strategy provides much in the way of stimulus now, and where the money will come from. “It’s impossible to prop up China’s economy with new infrastructure alone,” said Zhu Tian, professor of economics at China Europe International Business School in Shanghai. “If you are worried about the government’s added debt levels and their debt servicing abilities right now, of course you wouldn’t do it. But it’s a necessary thing to do at a time of crisis.”
Digital China is confident that follow-up projects from its housing initiative in Guangzhou could generate 30 million yuan in revenue for the company. It is also hoping to replicate those efforts with local governments in the northeastern province of Jilin, where it has 3.3 billion yuan worth of projects approved. These include building a so-called city brain that will for the first time connect databases including traffic, schools and civil matters such as marriage registry. “The concept of smart cities has been touted for years but now we are finally seeing the investment,” said Kwok.
This marks the latest mobile network upgrade on Mount Everest, where Chinese carriers had previously installed 2G, 3G and 4G equipment
China Mobile plans to deploy Huawei 5G gear at an altitude of 6,500 metres, providing network coverage to the mountain’s summit
A team from China Mobile shows off the initial 5G base stations, supplied by Huawei Technologies, that the telecoms carrier deployed on Mount Everest this April. Photo: Weibo
Huawei Technologies has teamed up with wireless network operators China Mobile, China Unicom and China Telecom to roll out advanced 5G infrastructure on
The deployment of 5G base stations on the famous Himalayan mountain, with an elevation of 8,848 metres, has extended the reach of the next-generation mobile technology, which has been held up as “the connective tissue” for the Internet of Things, autonomous cars, smart cities and other new applications – providing the backbone for the industrial internet. The new 5G infrastructure roll-outs were announced by Huawei in a post on Chinese microblogging site Weibo on Monday and confirmed by its spokeswoman on Tuesday.
China Mobile, the world’s largest wireless network operator, said its 5G project on Mount Everest marked “not only another extreme challenge in a human life exclusion zone, but also laid a solid foundation for the later development of 5G smart tourism and 5G communications for scientific research”, according to the company’s post on Weibo on Monday.
The Hong Kong and New York-listed carrier set up three 5G base stations – radio access gear that connects mobile devices to the broader telecommunications network – on April 19 in two camps at altitudes of 5,300 metres and 5,800 metres, which provide online download speed of about 1 gigabit per second.
China Mobile plans to install two more 5G base stations, supplied by telecommunications gear maker Huawei Technologies, on Mount Everest before April 25. Photo: Weibo
Installation of two more base stations are expected to be completed by China Mobile before April 25 in another camp at an altitude of 6,500 metres, providing 5G network coverage to the summit of Mount Everest. The international border between China and Nepal is 1,414 kilometres in length and runs across that summit.
More than 150 China Mobile employees are taking part on the construction and maintenance of the new 5G base stations as well as upgrading existing infrastructure on the surrounding areas, according to the company. It said 25 kms of new optical cables have also been laid out to support this project.
China Telecom confirmed its Mount Everest project on Tuesday in a statement, which said its 5G base stations were installed on April 13 at an altitude of 5,145 metres. It partnered with state-run China Central Television to broadcast a 24-hour live-streamed programme on April 14 from Mount Everest, which had an audience of more than six million people.
China Mobile did not immediately respond to a request for comment. China Unicom did not immediately reply to a separate request for comment.
Mobile network operators in China launched initial commercial 5G services last year. The country has already deployed more than 160,000 5G base stations, covering more than 50 cities, according to a report published last month by the GSMA, the trade body which represents mobile operators worldwide.
While initial commercial 5G mobile services were launched in countries like South Korea, the US, and Australia, the scale of China’s market is likely to dwarf the combined size of those economies, negating any first-mover advantage.
The steady annual deployment of new 5G base stations is critical to meet future demand in the world’s second largest economy and biggest smartphone market. China is expected to have 600 million 5G mobile users by 2025, which would make up 40 per cent of total global 5G subscribers, according to the GSMA.
Project will examine whether earthquake and changing wind speeds have affected peak’s snowcap
Survey team hoping the BeiDou satellite navigation system and other Chinese technology can help them find the answer
A Chinese team is preparing to determine the exact height of Mount Everest. Photo: AFP
China is sending a surveying and mapping team to the summit of Mount Everest this month in a bid to end the long-running debate over the precise height of the world’s tallest mountain.
The mission was announced on Wednesday at one of the mountain’s base camps in Tibet, where a team of 53 surveyors has been making technical preparations since March 2. The team will use China’s BeiDou navigation satellite system and Chinese surveying instruments for the project.
Mount Everest – known as Sagarmatha in Nepal and Qomolangma in Tibet – lies in the Himalayas on the border between China and Nepal. The two countries have long disputed whether measurements of the mountain should include its snowcap or be limited to the rock base.
Nepal suspends Everest permits over coronavirus
In 2005, a Chinese expedition assessed the peak and measured the height from both the rock base and from the top of the snowfall. The result, a rock height of 8,844.43 metres (29,017.2 feet), was declared by China to be the most accurate and precise measurement to date.
Nepal has long held that Everest’s snowcap should be included, putting the iconic peak at 8,848 metres, a height which is widely accepted. However, geologists believe the snowcap may have shrunk by several centimetres after the magnitude 8.1 earthquake in 2015. Changing wind speeds are also believed to have affected it.
Chinese President Xi Jinping visited Nepal in October. Photo: EPA-EFE
Following a state visit to Nepal by Chinese President Xi Jinping in October, the two countries agreed to jointly launch a scientific research project to determine the exact height of Everest, recognising the peak as “an eternal symbol of the friendship between the two countries”.
China’s natural resources ministry said the project indicated a new step in the friendship and highlighted the historical significance of the mission, which coincides with the 60th anniversary of the first Chinese ascent of the mountain’s north side as well as the 45th anniversary of China’s first precise measurement of the peak.
The results of the survey will be used for geodynamics research and the precise depth of the summit’s snowcap, meteorological and wind speed data will offer first-hand materials for glacier monitoring and biological environment protection.
In a separate development, China Mobile said on Thursday that the entire peak now had 5G coverage.
In a joint project with Huawei, 5G antennas were installed at the mountain’s advance base camp, at a height of 6,500 metres. Antennas were installed earlier in April at the lower base camp, at 5,300 metres and at 5,800 metres.
HEFEI, Sept. 21 (Xinhua) — Chinese top telecom operators have shown their latest achievements in 5G applications at the World Manufacturing Convention 2019 in Hefei, capital of eastern China’s Anhui Province, according to the organizer.
The operators, including China Unicom and China Mobile, showcased 5G applications in education, health and other fields.
“China Unicom has focused on 5G applications in finance. We will also provide 5G communication services for the 2022 Beijing Olympic Winter Games,” said Tao Xian, industry director of China Unicom Anhui branch.
The World Manufacturing Convention 2019 opened Friday in Hefei, setting a platform for industry insiders to showcase cutting-edge technologies and develop business contacts.
The four-day event brings together more than 4,000 representatives from over 60 countries and regions, including senior managers from Global Fortune 500 companies, said the organizing committee.
URUMQI, March 2 (Xinhua) — Farmers at a small village in western Xinjiang hardly had any days off this winter. Production at a walnut processing factory is going full throttle to meet demand.
Yusup Tursun and his wife are walnut farmers in Kupchi Village in Yecheng County on the edge of the Taklimakan Desert. The couple has been hired by a new walnut processing facility in the village, with the husband a quality inspector and his wife working part-time cracking nuts.
As a main base for walnut production, Yecheng has over 38,000 hectares of high-quality thin-shell walnut groves.
“It used to be quite difficult to sell the walnuts. The factories, with so many products, have made it easier for the sales,” Yusup said.
Seven companies make products from the nuts — walnut milk, walnut candies and edible oil. The shells are made into coloring agent and pollutant-absorbing carbon.
Diversity in the walnut products pushed the industry output to a new high of 2 billion yuan (about 299 million U.S. dollars). Three in every five people work in the walnut industry in Yecheng, where 550,000 people live.
Across Xinjiang, processing facilities are established to add value to agricultural products. Transport and logistical services are improved to boost the sales of Xinjiang’s signature agricultural products such as Hami melons, Korla pears and Turpan grapes.
UP THE VALUE CHAIN
Xinjiang is also moving up the value chain in two of its traditional industries — cotton and coal.
As one of the main cotton production bases in China, Xinjiang holds sway in the textile industry. By making full use of its cotton resources and geographical advantages as a portal for opening up, the region no longer sees itself as just a production base for raw materials. Starting from 2014, China’s leading garment and apparel makers including Ruyi Group, HoDo Group, and Huafu Fashion Co. Ltd invested in the region and built factories.
These factories have produced added benefits and created jobs for the local people. Xinjiang produces 1.5 million tons of yarn and over 40 million ready-made garments every year. More than 400,000 people work in the industry.
In the eastern part of the coal-rich Junggar Basin, workers have found that the snow is cleaner than before. The Zhundong Economic Technological Development Park, about 200 km west of Urumqi, is home to China’s largest coal field.
A stringent environmental requirement is applied to the park, said Ren Jianpin, director of the management committee of the park. Coal enterprises are required to control coal dust, install equipment to recycle water and coal slags are processed into construction materials, he said.
The park is focused on boosting high-end industries in aluminum and silicon materials, which generate more value and have less impact on the environment, he said.
GOING HI-TECH
Last year, a large-scale bio-based plant went into operation in Usu City to turn corn into nylon. The Cathay Industrial Biotech, a Shanghai-based biotech company, is the investor.
Nylon is usually made from petroleum, and the use of crops such as corn and wheat to make recyclable and environment-friendly nylon has promising business prospects, said Wang Hongbo, vice general manager of the company’s Usu branch.
The Usu branch will have an annual output of 100,000 tons of bio-based polyamide, and it is expected to boost the development of downstream industries in the future, he said.
The oil-rich city of Karamay has also received a hi-tech boost as cloud computing firms eye the dry and cold weather in the area. Karamay is home to many key state-level projects and IT-industry leaders, including a global cloud service data center for Huawei, data centers for the China National Petroleum Corp. (CNPC) and China Mobile.
Xinjiang is making new breakthroughs in precision machining, new materials, manufacturing and textiles.
Data from the regional statistics bureau show that the value added of the hi-tech manufacturing in Xinjiang rose by 32.1 percent year-on-year in 2018.
FURTHER OPENING UP
As a core area on the Silk Road Economic Belt, Xinjiang has maintained solid growth momentum in foreign trade. Foreign trade volume between Xinjiang and 36 countries and regions along the Belt and Road (B&R) totaled about 291.5 billion yuan (43.5 billion U.S. dollars) in 2018, up 13.5 percent year on year.
Economic observers say that there is still much room for Xinjiang to scale up its processing trade to raise the level of imports and exports.
Xinjiang will further develop an export-oriented economy in 2019 and participate in economic exchanges with neighboring countries, according to the regional government’s work report released in January.
CHINDIA ALERT: You'll be living in their world, very soon 