A 5G-driven future
And while China’s data prowess is formidable, improvements in telecoms technology look likely to boost it in the future, particularly in the roll-out of 5G technologies.
5G technology is the next generation in mobile technology – it means more advanced telecommunications networks that can handle much larger and more diverse range of data communications.
5G networks offer the foundation to connect an unlimited number of machines and will significantly improve not only the amount of devices that a network can handle, but can offer significantly faster communications speeds.
And China is taking the lead in installing the infrastructure and developing the hardware that will give it an advantage in 5G technology. By mid-2018, China had 1.9 million 5G enabled wireless transmitters installed, compared with 200,000 in the US10, and had 14.1 installed transmitter sites per 10,000 people, compared with 4.7 in the US and 8.7 in Germany11.
New fuel will drive the new economy
What this all means is that Chinese companies capable of harnessing, processing, and analyzing new dataflows, as well as developing new products to suit them, will have a huge advantage in developing the tech products of the future.
So with China’s data superiority, and the prospect of growing it in the future as China’s online user base expands and companies innovate, is one of the key reasons why it will see good growth prospects for ‘new economy’ companies.
‘New economy’ sectors currently mining China’s rich seam of data and developing innovative products include healthcare, IT, insurance, and consumer discretionary spaces.