China's 5G and AI-integrated boom

Editor's note: Muhammad Asif Khan, a special commentator on current affairs for CGTN, is a research intern at the China Pakistan Study Center at the Institute of Strategic Studies Islamabad. The article reflects the author's views and not necessarily those of CGTN.

History has shown that sanctions can either be circumvented or serve as a springboard to create opportunities for their targeted country. Similarly, the 2023 Washington sanctions on Chinese products proved to be a blessing in disguise for China, accelerating the already rapid high-tech-led development.

U.S. sanctions diverted Chinese focus from traditional manufacturing, agriculture and health industries to high-tech and AI-driven sectors. With crucial support from the government and business community, Chinese scientists and researchers integrated artificial intelligence (AI) and 5G into these sectors. Notable companies, such as Alibaba, Tencent and Huawei, played a pivotal role in this technological transformation.

China's tech boom can largely be attributed to the government's proactive stance and strategic foresight in policy formulation regarding tech investment. The successful AI integration has not only enhanced China's position in global competition but also solidified its influence in the global tech industry.

In the early 2000s, the rise of major tech companies, such as Alibaba and Tencent, marked the beginning of China's digital economy, spurring the development of related sectors and underlining the significance of digital transformation. The rapid urbanization and the rise of the middle-income group catapulted the progress cycle, creating a healthy environment for technology to flourish. Behind this progress lies a mindset prioritizing scientific knowledge and innovative ideas over financial gain.

This mindset has given birth to an environment where companies were not only competing with other tech giants but also collaborating on other domains through partnership and cooperation. Collaboration and innovation are at the heart of China's tech industry, inspiring all those involved in the sector with its progress and potential.

In 2023, China's scale of computing power reached 230 EFLOPS, ranking second in the world, and according to official figures released at the 2024 World Intelligence Expo, China is home to over 4,500 AI companies, showcasing not only China's rapid technological advancement but underscoring the vibrancy and dynamism of China's tech ecosystem as well.

China's tech industry progress was further highlighted by its burgeoning digital economy. In 2023, the value-added output of core industries in the digital economy reached 10 percent of the nation's GDP, as per the National Data Administration's latest report. This achievement met the digital economy development target of the 14th Five-Year Plan (2021-2025) two years ahead of schedule. The achievements underscore China's rapid technology growth to enhance its potential in the global tech industry.

Moreover, according to China's Ministry of Industry and Information Technology, the scale of China's intelligent manufacturing equipment sector has exceeded $450 billion. This rapid rise is evident in the cultivating of 421 national-level demonstration factories that apply intelligent systems and automation in their manufacturing processes.

Meanwhile, AI and 5G have transformed urban city management. China's tech giants, like Alibaba, Huawei and Baidu, have collaborated to transform urban cities. These initiatives gave birth to the concept of smart cities. Telecom Review Asia describes "Alibaba City Brain" as a state-of-the-art AI-led integrated infrastructure that "revolutionizes urban management." This includes the automation of traffic systems, the optimization of public transport routes and the identification of environmental issues.

In parallel, the textile industry in Xinjiang is integrating the 5G technology, which has reduced transmission delays and improved connectivity efficiency. Incorporating AI in textiles has curtailed energy consumption and enhanced quality, bolstering their market competitiveness in foreign markets. South China Morning Post reports that Xinjiang produces more than 90 percent of China's cotton, which is a quarter more than the United States' entire output. Furthermore, China uses modern automatic harvesting techniques in cotton-producing regions, improving the cotton yield.

Additionally, in the health sector, China's Tsinghua University has developed the AI hospital, "Agent Hospital," with AI doctors treating 10,000 patients in just a few days. The doctor agents are trained in a highly controlled and sophisticated environment and have an accuracy rate of 93.06 percent on the MedQA dataset (U.S. Medical Licensing Exam questions) covering major respiratory diseases.

The AI and high-tech-led boom has also been exposed to challenges and controversies. There is a consistent and significant voice in the U.S. and the West to restrict highly sophisticated and advanced technology exports to China. The motives of such moves are to acquire geopolitical advantages over China.

In essence, the technology revolution is sweeping across the globe and has changed the dynamic of global competition. States that possess the highest capabilities in AI and advanced technology will dominate the future.

China's high-tech boom has led to significant achievements in technological innovation, successfully setting new benchmarks for technological advancements. This surge has provided space for new startups and young entrepreneurs in the Chinese market. The future offers excellent opportunities; however, it also presents several challenges, including data privacy and security.

The achievements of China's high-tech boom, such as the successful integration of AI and 5G, the development of smart cities and the advancements in the health sector, are the pride of China's tech community. The leverage of setting the future guidelines for the world lies in the hands of those who lead AI, and China is acting on it fast.

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