Background:

l   The scale of IoT industry in China had increased from ¥489.6 billion to ¥1.5 trillion between 2013 and 2019 (according to China Communications Industry Association).

l   There are currently more than 30,000 enterprises related to IoT in China, with SMEs accounting for over 85% of the total.

l   The Outline of the 14th Five-Year Plan has incorporated IoT into seven key industries of digital economy.

Current Status and Main Contents:

Recently, eight departments including the Ministry of Industry and Information Technology (MIIT) have jointly issued the Three-year Action Plan (2021-2023) for the Construction of New Types of Infrastructure for the Internet of Things, clarifying several major concerns of the IoT industry:

l   The future of the IoT industry:

     1)  Better technologies: breakthroughs for key and core technologies, and the integration of IoT technology with new technologies such as 5G and AI.

     2)  Broader applications: key industries including agriculture and manufacturing will embrace deployment of the IoT to promote digital transformation.

     3)   More standards: new standards and active participation in international standards will facilitate the development of the IoT industry.

l   Specific Targets:

   1)  the development and revision of more than 40 national standards and industry standards

     2)  build up 10 leading enterprises with an output value of ¥ 10 billion each in the IoT industry

     3)  IoT connections reaching 2 billion

Possible Impact and Suggestions:

l   Traditional sectors in China will experience faster transition to embrace high-tech like the IoT.

l   Further compliance and specific goals by sector are very likely to be published as a follow-up.

l   MNCs or foreign stakeholders can participate in cooperation programs (such as Belt and Road initiative) for the IoT; keep track of the release of new standards and China's involvement in international standards, to ensure their compliance.

l   More competition in the global IoT market: with the potential rise of Chinese IoT giants.

l   Enterprises with or that are implementing cutting edge technologies in the IoT would gain advantage in the Chinese market.

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