China Addresses Fragmentation and Imbalances in Infrastructure Development

BEIJING (Reuters) – China will tackle the risks of fragmentation and imbalances as it aims to develop new infrastructure to enhance its manufacturing sector, the government announced on Wednesday.

China has constructed the world’s largest 5G network and fiber-optic broadband systems, accompanied by increasing capabilities in artificial intelligence, as noted by various state agencies, including the industry ministry, finance ministry, and the central bank.

However, the government acknowledges that issues like lack of coordination, integration difficulties, and emerging imbalances are becoming more pronounced.

The notice emphasizes the challenges of uncoordinated development and regional disparities present in new information infrastructure.

The planned infrastructure aims to fuel the growth of “new productive forces” in the economy and aid in the industrial upgrade, with the goal of reinforcing China’s status as a strong manufacturing nation.

The term “new productive forces,” introduced by President Xi Jinping last year, highlights the necessity for economic growth driven by innovation in advanced sectors.

As traditional infrastructure investments such as roads and bridges show diminishing returns, China is focusing more on “new infrastructure” projects, including 5G telecommunications, artificial intelligence, and big data.

(This story has been refiled to remove an extraneous word in paragraph 1)