China's Silicon Valley Shenzhen revealed its expansion plans to boost internet connectivity and digital economy activity. As part of the plan, the wealthiest city in southern Guangdong province aims to add 10,000 5G base stations this year.
Infrastructure Expansion Plan
Shenzhen Municipal Government's Industry and Information Technology Bureau published a digital infrastructure plan. According to South China Morning Post, the plan involves upgrading 5G mobile services and aims for broader adoption of the Gigabit Ethernet fiber optic network. This will enable the southern tech hub to become China's top city in terms of internet speed.
This will also include formulating 5G service industry standards to help companies upgrade their content delivery network (CDNs), which consists of servers distributed to different locations to reduce latency and load times.
Companies are encouraged to use CDNs to improve the speed and experience of the customers. The municipal government noted that the city plans to give away free cloud storage and internet data to citizens in some areas or key digital economy districts.
Around 40% of the residential household in Shengzhen is targeted by the authorities to adopt 5G connectivity with speeds of 1 gigabit per second or higher. This move is a significant upgrade, especially since only 15.6% of all broadband users in China had a connection higher speed than 1Gbps, as per the Ministry of Industry and Information Technology.
Prioritizing Development
Chinese President Xi Jinping revealed his vision for the digital economy last year, with 5G connectivity as its primary purpose. The country aims to claim to become the world's biggest market for the most prominent internet, smartphone, and e-commerce.
As of now, Shenzhen is focusing on the primary tasks of high-quality development and seizing every minute in making every effort to become the largest tech market in the world. Sierra Leone Times reported that these plans draw a multi-dimensional picture of the city's high-quality development.
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Just last month, Shenzhen increased its effort for China's high technology self-sufficiency drive as the city built an international procurement network for semiconductors and electronic products.
As China plans to turn Shenzhen to become a semiconductor and electronics powerhouse, a new Electronics Components and Integrated Circuits International Tradio Center were built in the city's Qinahai economic zone.
The company registered last January 3 with the local market authorities and has already received its business license since December 30, 2022. The trading center's initial capitalization is 2.1 billion yuan or $304 million.
The National Development and Reform Commission and the Ministry of Commerce last January of last year first announced this. It was anticipated to attract many international manufacturers and distributors in the industry of chips and electronics.