A view of 5G base stations built by China Mobile at Mount Qomolangma. Photo: Courtesy of China Mobile

With the largest share of patent applications in information and communication technology (ICT), China has played a significant role in boosting global digital economy, according to a report released by the World Trade Organization (WTO) on Tuesday.

The report detailed China's efforts to use digital technology to develop its economy and fight COVID-19, spur innovation and create a vibrant e-commerce market supported with advanced mobile payment solutions.

The report explains how ICT can help people avoid COVID-19 infection whilst keeping economies running. Since the start of the pandemic, governments have introduced a wide range of mobile solutions to mitigate the spread of COVID-19, and to assist health professionals treat patients and optimize hospital logistics, said the report.

Since the pandemic began, China has made use of ICT technology to check on people's health status, effectively reducing infections and allowing the resumption of work. 

By typing "Health Kit" into the WeChat or Alipay search bar, a mini-program appears allowing users and business owners to assess an individual's health status when entering a residential neighborhood or office buildings, or visiting a restaurant. 

China has distributed digital vouchers through WeChat Pay to encourage spending, helping to fast-track stimulus funds to consumers more rapidly. Chinese e-commerce giant Alibaba reported that its sales grew by 22 percent in the first three months of 2020, despite the virus.

The report pointed out that the number of ICT-related patent applications saw strong growth compared with other patent applications. But in recent years, this trend has been strongest in China, the report says.

And, 5G mobile networks are expected to be a game-changer for the sector, as many new technologies such as the IoT (Internet of Things) depend on a fast and stable data transmission network.

To date, China has built the world's largest 5G network, with 700,000 5G base stations, accounting for 70 percent of the world's total, and connecting more than 180 million terminals, Liu Dehong, vice minister of Industry and Information Technology said at a recent conference.

The report adds that in terms of market structure, a data-driven economy gives rise to superstar firms, resulting in high market concentration across a wide swath of industries and a low share of labor in value-added sales.

Alibaba is estimated to occupy close to 60 percent of the Chinese e-commerce market, while WeChat app, owned by technology giant Tencent, has more than one billion active users. Together with Alipay, they are offering mobile payment solutions for virtually the entire Chinese market, said the report.

The rise of China as a technological leader in many domains has pushed governments in the United States and Europe to take a more active role in planning their industrial and innovation strategies. 

But there is an even greater need for international cooperation and a set of rules to ensure that modern industrial policies are designed and implemented in  ways  that would  encourage healthy competition and discourage zero-sum rivalry.

Global Times