China's Internet of Things ecosystem is gradually being built, and vertical industry convergence is accelerating

Zhu Xi, the deputy director of the Department of Informatization and Software Services at China's Ministry of Industry and Information Technology, highlighted that the Internet of Things (IoT) ecosystem in China is gradually taking shape. He noted that vertical industry integration is accelerating, with a steady increase in patent applications over the years. Significant progress has also been made in the development of international IoT standards. These remarks were made during the 2017 China Internet of Things Conference, which kicked off in Fuzhou on the 9th, under the theme “Intelligent ICT and Smart Society.” The event brought together experts and industry leaders to discuss the future of connected technologies. In June of this year, the Ministry proposed a comprehensive plan to promote the mobile IoT infrastructure, emphasizing wide coverage, large-scale connectivity, and low power consumption. It also emphasized strengthening innovation within the IoT industry and advancing demonstration projects in areas such as public safety, healthcare, urban management, and people’s livelihood services. Zhu Xi pointed out that early-stage pilot applications have already shown promising results. The IoT is now being integrated into sectors like retail, transportation, logistics, environmental protection, healthcare, security, and power systems, with large-scale adoption beginning to take root. The country has started to form a spatial development pattern across four major regions: the Bohai Sea, the Yangtze River Delta, the Pearl River Delta, and central and western China. In 2015, the Fuzhou Economic and Technological Development Zone became the fourth national-level IoT park, leading the nation in the innovative application of narrow-band IoT technology. China’s IoT industry is also evolving rapidly. The scale of the industry grew from 17 billion yuan in 2009 to over 930 billion yuan by 2016. Zhu Xi explained that China has developed a relatively complete industrial chain, covering chips, sensors, terminal devices, application software, system integration, and communication networks. Over 100 million M2M terminals have been deployed on the world's largest mobile communications network. However, despite these achievements, the overall level of IoT application remains relatively low. Core chips, high-end sensors, and smart hardware still lag behind those of developed countries. Additionally, there are ongoing concerns regarding network and information security. Looking ahead, Zhu Xi said the Ministry of Industry and Information Technology will focus on strengthening key IoT technologies, accelerating the development of core standards, and promoting the internationalization of independent technologies. It will also aim to cultivate large enterprises with strong influence and support the growth of specialized small and medium-sized enterprises. Furthermore, the ministry plans to improve the top-level design for IoT security, establish an effective early warning and supervision mechanism, and enhance overall information security capabilities.

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