New Infrastructure Investment Will Reach CNY 15 Trillion Within Five Years
COVID-19 and China
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Under the support of 5G, cloud and IIoT, China’s manufacturing value chain will promote industrial upgrading by integrating deeper data capability. According to Goldman Sachs, New Infrastructure’s investment scale will be CNY 2 trillion in 2020; it also expects investment in the sector to reach CNY 15 trillion from 2020 to 2025. Specifically, most of this investment comes from the subway, IIoT and AI.

Regarding the new infrastructure’s development processes, there will be three phases. The first period is from 2019 to 2022, building 5G internet. Compared to the last four years, the next four year’s total investment in 5G Internet will reach CNY 153 billion, due to the increasing costs in 5G equipment. As for the second phase, deploying digital infrastructure from 2020 to 2025. The rapid growth in manufacturing and the mature phases in cloud computation, IoT and big data will act as triggers to accelerate IoT investment.

When it comes to the last stage, it is time to enjoy the potential economic effect from 2023. To be more precise, the new infrastructure’s economic influence is reflected in the savings from the vertical application field, about CNY five trillion. In the future, IoT technology will be popularized in broader areas, and new business modes would emerge in the form of new after-sales service and data consulting.

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