On May 25, 2020, it became known that the Chinese leadership decided to invest in its economy, namely in the country’s scientific and technological development, over $ 1.4 trillion over 10 years.
According to official data from China alone, the country’s reserve fund exceeds $ 3.2 trillion.
China plans to seize world leadership in the technological sphere, the country plans to spend up to $ 1 billion only on advanced 5G technologies, as well as subsidize the development of Internet of things and 5G technologies.
The main reason for such huge investments is to unfasten your dependence on technology and software in the USA, as well as to conquer more world markets. As we all remember, the United States imposed sanctions on several high-tech corporations in China.
According to the plan, China plans to invest up to 1.4 trillion dollars by 525 for the deployment of 5G networks, as well as more dynamic development of the Internet of Things, the installation of cameras and sensors and the development of artificial intelligence that will be used in unmanned vehicles in automated factories and for mass surveillance of people. The construction of data centers, the laying of high voltage lines and high-speed rail lines are also planned.
In the development of the country’s technological sphere, not only the country’s leadership and ministries will be involved, but also medium and large corporations from Huawei, ZTE to Alibaba, as well as telecom operators.
The main goals of the Middle Kingdom
With such large-scale investments, China plans to achieve the following results:
- Become more independent from American software and hardware.
- The dynamic development of high technology in the country
- Conquest of new markets by companies from China
- The development of the domestic economy, improving the economic condition of the country, increasing the rate of GDP growth, the development and application of “smart technologies” for citizens and the state.
- Strengthening control of streets, cities by installing hundreds of thousands of high-quality smart cameras on streets, yards, roads, smart software will allow you to calculate robbers, find wanted people online, determine where traffic jams are planned, where there are accidents.
“Nothing like this has happened before, it’s China’s gambit, with which he plans to win the global technology race,” says Digital China COO Maria Kwok. – “Starting this year, we begin to see this cash flow.”
The technological breakthrough project is designed so that in 5 years the country will achieve significant results in high-tech sectors of the economy.
Alibaba, Huawei and Tencent should become the locomotives of the new technological breakthrough, and the development of 5G networks is entrusted to Huawei, Lenovo, ZTE. Active participation in the program will also be personally attended by Ma Huateng (Tencent) and Jack Ma (Alibaba).
According to Morgan Stanley forecasts, China will invest hundreds of billions of dollars annually in various high-tech sectors of the economy over the next 11 years. Data centers, laboratories, silicon valley analogues, research centers of artificial intelligence, etc. will be created.
“The new stimulus plan is likely to lead to the consolidation of leading Chinese technology companies, resulting in some even larger corporations that can compete with world leaders such as GE and Siemens,” Nunnan Ku, chief analyst at BloombergNEF, predicts. “One of China’s bets is on the Internet of Things industrial platforms, and the country is aiming to grow three such global companies by 2025.”
The Chinese breakthrough will obviously be more real than our Russian breakthroughs promised since 2010, as Heavenly Empire not only invests $ 1.4 trillion in high technology, but also supports high-tech companies in the country, land will be allocated, communications to laboratories, data centers, research centers will be summed up, there will be subsidies for corporations that will invest in high technologies and their development . For their part, Chinese high-tech corporations patriotically decided to support the state and the economy, plan to allocate their money for the development of future technologies, as well as the opening of additional departments, centers for the development of “Internet of things”, artificial intelligence, 5G.
“The rapid growth of new sectors will breathe new life into the economy of the Middle Kingdom after the pandemic,” the expert said in an interview with Bloomberg News.
Such jerks and investments in the economy will bring to the country not only millions of jobs, new technologies, but the country’s independence from Western countries, their technologies. The Chindata Group (data center operator) predicts that for every $ 1 invested in data centers, there will be another $ 5- $ 10 invested in related sectors, such as the construction of Internet infrastructure and electricity networks, as well as the production of high-tech equipment.