Analysis of the Current Status of Smart City Development in China: Government Vigorously Promotes Planning and Construction

2022-05-16


In recent years, China has accelerated the development of digital cities. According to available information, more than 100 new prefecture-level digital cities have been established, bringing the total number of ongoing prefecture-level digital city projects to over 300, with more than 150 already completed and deployed across over 60 application areas. In addition, work has been initiated on more than 100 digital county-level projects and three pilot smart city initiatives. In 2012, the National Administration of Surveying, Mapping and Geoinformation revised the goal from “building digital cities” to “building smart cities.”

On April 7, 2015, the Ministry of Housing and Urban–Rural Development announced the list of national smart city pilot projects for 2014, designating 84 cities (including districts, counties, and towns), such as Mentougou District in Beijing, as new national smart city pilots for 2014, and 13 additional cities (districts, counties), including Zhengding County in Shijiazhuang City, Hebei Province, as expanded‑scope pilots. In response to the demands of the times and to promote distinctive urbanization, the Chinese government has in recent years vigorously advanced the planning and construction of smart cities. From 2012 to 2016, China selected hundreds of cities and towns to serve as national “smart city” pilots. According to relevant data, as of March 2017, 95% of sub‑provincial cities and 83% of prefecture‑level cities—totaling more than 500 cities—had included smart city development in their government work plans. It is expected that the number of completed and under‑construction smart cities in China will exceed 500 this year.

From a supply-chain perspective, the development of smart cities involves a range of stakeholders, including governments, telecom operators, solution providers, content and service providers, and end users. In terms of smart-city solutions, the upstream and downstream segments of the value chain encompass various technology-driven enterprises, such as RFID and other chip manufacturers; sensor and IoT-terminal manufacturers; telecommunications-network and IT-equipment suppliers; developers of end-user application software; system integrators; operators of smart-city-related services; and providers of high-level planning and consulting services.

Among these, the roles of various stakeholders in the process of smart city development and the outcomes experienced by users are key considerations. Forward-looking recommendations for China’s smart city development suggest that, for a country currently in an economic recovery phase, the introduction of the “smart city” concept presents enormous opportunities for growth. By seizing this opportunity, China can not only accelerate its development and mitigate the impact of the economic crisis but also leverage new forms of intelligence to pioneer emerging industries and markets, thereby charting a path of leapfrog development. Therefore, China should capitalize on this opportunity, fully harness the benefits of smart cities, and effectively address the associated challenges. In pursuing smart city development, China must first place paramount importance on the implications of smart cities for the nation’s information industry and information security. From a formal perspective, the “smart city” initiative may appear to be a marketing tactic and product-promotion strategy employed by IBM as part of its self-help measures in response to the financial crisis; however, its strategic foresight and forward-thinking nature are undeniably significant and cannot be overlooked.

China’s development of smart cities should also accelerate the establishment of an IoT system with independent intellectual property rights. The IoT is not only a critical infrastructure for smart-city construction, but it is especially important because it involves the collection of dynamic security-related information across sectors such as transportation, energy, and finance. Only by building an IoT system with independent IP can we confidently address the various impacts that IoT systems may pose during the construction and operation of smart cities.

To develop smart cities, China must promptly master the core technologies underpinning them. At present, China remains highly dependent on foreign sources for advanced information technology, with the core technologies in most industries still controlled by multinational corporations. Only by strengthening independent R&D in critical technological fields, achieving breakthroughs in core technologies, and enhancing integrated innovation in related technologies can China build smart cities that are independently controllable.