China has earned a greater say in the development of global telecom standards, but how far will the rest of the country go?



A report from the Economic Information Daily Wednesday said China has set a timetable for the development of fifth-generation (5G) wireless communication and that Chinese telecom operators would likely invest more than 500 billion yuan ($72.5 billion) into the network construction starting in 2019. The ambitious plan comes several days after the Polar Code, backed by Chinese telecom giant Huawei, was selected as a part of the global standard for 5G.



Telecom enterprises from the US and the EU have long been the leaders in building global standards, which gives them competitive advantages in the market. Despite the fact that the China-backed technology makes up only a small part in the 5G standard, the success of the Polar Code has some symbolic implications for China. Some observers have suggested the victory could serve as a prelude for Huawei to defeat US-based Qualcomm Inc.



However, in that regard, China should stay cool-minded. One question few people have asked in the wake of the success of the Polar Code is why Chinese enterprises in industries, other than telecom, appear to be weak in writing rules in the global market. Beijing is aiming to transform the country from the world's factory into a leading high-end manufacturing power over the next decade. There is no doubt that having a greater say in building global standards will play a key part in this effort.



Chinese Premier Li Keqiang called for more effort last month to provide a nurturing environment for innovation and entrepreneurship in a fresh show of support for the country's startups. Almost everybody in China is talking about innovation at the moment, but not everyone takes it seriously, and it is still not easy for most Chinese firms to play a role in setting global standards in the short term.



In 2013, while still working on 4G network capabilities, Huawei announced it would invest at least $600 million on research and innovation for 5G technologies and pledged to set up innovation centers in at least nine countries. As part of this drive for innovation, the telecom giant teamed up with foreign companies like Japanese mobile operator NTT DOCOMO to develop 5G radio access technology and now some of its technologies have caught up to the most advanced levels in the world. Chinese firms in other industries should learn from Huawei and increase investment in research and development regardless of any deficits they may suffer in the short run.



The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn