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F5G to be new driving force for Chinese economy

Author  :  WENG RONG     Source  :    Chinese Social Sciences Today     2019-11-25

F5G, or the 5th Generation Fixed Network, is the latest internet broadband network featuring full-fibre broadband and large bandwidth. A report on the potential socioeconomic benefits of F5G has been recently released by the “Internet Power” research group from the Institute of Industrial Economics at the Chinese Academy of Social Sciences.

Amid the rising trade protectionism and weaker global economic recovery, countries are beginning to take the high ground of the digital economy—a strategic move to boost their economy and win the global industrial competition, the report observed.

The new type of information infrastructure with F5G and 5G at its core is giving birth to technologies essential to a new round of scientific, technical and industrial revolution. The researchers explained that F5G is a low-investment technology endowed with high speed, high stability and low latency, and it should serve as the key to building China into an “internet power,” a strategy included in the 13th Five-Year Plan.

Since 2010, China’s economy has begun to grow at a medium-high growth rate, and the economic growth model has changed fundamentally. The report believes that the contribution rate of traditional investment and net exports has begun to decline, thus new types of investments and high-end consumption should become the new priority for China’s economic transformation. On the other hand, F5G, as a new type of infrastructure, can stabilize investments and stimulate consumption.

The report is convinced that F5G will empower the digital economy while remaining exempt from the disadvantages commonly seen in traditional infrastructure investments. Meanwhile, the fixed network will respond to the trend of consumption upgrading in China, and it will pave way for a booming new service industry consisting of VR, cloud gaming, HD video and more.

The building of F5G will also generate enormous economic benefits, and it will increase the total factor productivity. Researchers calculated that the economic value brought by F5G from 2019 to 2025 will exceed 2.27 trillion yuan, while creating about 5.03 million new jobs and adding 0.3 percentage points to China’s GDP growth.

What’s more, F5G supports the growth and sustainable development of the vertical application market. It will also strengthen China’s advantage in information communication equipment and technology. Optical communication is one of China’s strongest points in ICT. The researchers said the competition in optical communication techniques will determine the future of China’s communication network and digital economy. That’s why we need to accelerate the application and conversion of F5G to enhance our technical advantage.

Editor: Yu Hui

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