China’s government plans to invest Yn140bn (US$22bn) to upgrade its internet infrastructure and connect about 98% of its rural areas by 2020.
China’s government plans to invest Yn140bn (US$22bn) to upgrade its internet infrastructure and connect about 98% of its rural areas by 2020.
Between 600 million and 800 million people are thought to live in the country’s rural regions, and the State Council said yesterday that its plans will provide at least 50,000 villages with internet access.
The decision to allocate more central government funds for telecoms, and also more funding from local governments and social organisations, was made during an executive meeting of the State Council that was presided over by Premier Li Keqiang.
The government pledged to improve internet speeds, and expand e-commerce apps in rural areas as part of efforts to boost online spending amongst rural residents.
Online shopping revenues soared 24.7% year-on-year to reach Yn9.8trn (US$1.54trn) between January and August, according to Zeng Chen, an e-commerce expert at the Ministry of Commerce.
“There is a large market for e-commerce in rural areas and small and medium-sized cities in western China, where residents need the same goods as their urban counterparts but have limited access to such products,” Zeng said in a statement on the State Council’s website.
“E-commerce revenues in third- and fourth-tier cities have shown stronger momentum than in big coastal cities, and we expect increased growth in these areas when local logistics are improved.”
China sees cross-border e-commerce and shopping via mobile devices as new sources for growth amid a slowdown in its wider economy.
The government also aims to tap into this potential by boosting its domestic delivery industry, through measures including opening it up to social investors, encouraging M&A, and streamlining customs procedures for cross-border deliveries.
