Smart Cities in China

Smart Cities Overview

• Smart cities utilize real-time data and high-speed networks to enhance urban living.
• These systems aim to improve traffic flow, conserve energy, and enhance safety.
• China is a significant adopter of smart cities, viewing the concept as a national strategy championed by Xi Jinping.
• Beijing has invested an estimated $800 billion in related infrastructure.
• Key infrastructure includes high-speed rail, autonomous vehicles, smart grids, and 5G networks
• China is currently piloting over half of the world's smart cities.

Concerns and Trade-offs

• High-tech surveillance is a widespread practice in China and a growing concern for countries importing these systems.
• China exports surveillance technology to other countries under the guise of "smart cities".
• By 2030, China is projected to become the world's largest economy, with smart cities playing a crucial role.

Urbanization in China

• China's urbanization is occurring at an unprecedented rate, with approximately 20 new cities built annually.
• More people live in Chinese cities and towns than in rural areas.
• Economic reforms in the 1970s led to mass migration from rural areas to cities for work, fueling economic growth.
• Over 10% of the world's population resides in Chinese cities.
• China has over 100 cities, each with a population exceeding one million.
• Urbanization is projected to reach 80% by 2050 as part of Beijing's plans.
• The National New Type Urbanization Plan in 2014 designated smarter urbanization as a national priority.

Smart City Initiatives

• The Communist Party’s five-year plan includes rolling out five interconnected city clusters by the mid-2030s.
• These clusters are projected to house up to 100 million people each.
• Xiongan is designed to relieve Beijing of non-essential functions and offer a Chinese solution to urban issues.
• Smart cities align with China's economic transformation by promoting innovation, technology, and economic upgrades.
• Shenzhen, in the Pearl River Delta, exemplifies an advanced smart city.
• Shenzhen's population has grown 40-fold.
• Shenzhen's GDP has increased at 11,452-fold over the past 40 years.
• Between 2015 and now, Shenzhen's population increased from approximately 13 million to nearly 20 million.

Technological Infrastructure

• Huawei, headquartered in Shenzhen, is a major tech firm supporting global broadband infrastructure.
• Shenzhen deployed next-generation 5G and high-speed broadband in 2020, with Huawei playing a key role.
• Huawei achieved downlink peak throughput of over six gigabytes per second for a single user in 5G tests.
• Shenzhen's average broadband speeds are about one gigabyte per second.
• Smart traffic lights and surveillance cameras optimize traffic flow and capture violations.
• Mobile, broadband, and fixed technologies connect various city functions.
• Citizens can access government services, taxation, and utilities online, reducing the need to visit city hall.
• Such digital access reduces traffic and improves efficiency.

Surveillance and Privacy Concerns

• China's smart cities are associated with a surveillance state, raising privacy concerns.
• Discussions in China focus on protecting personal data from companies, with draft laws for data security.
• However, there is limited discussion or protection against government intrusion on personal privacy.
• Chinese social media and blogs actively discuss AI intrusion on personal lives.
• Local governments can monitor citizens in real-time using advanced technology.
• Under the Cyber Security Law, companies must store user data on local servers and decrypt data upon request.
• A new data security law was enacted on June 11th.
• Concerns exist that Chinese companies may share sensitive information with Chinese intelligence services.
• Huawei has been accused of potentially using its telecom equipment for espionage, allegations the company denies.

International Relations

• The UK's decision to exclude Huawei from its 5G network has been criticized by the Chinese ambassador.
• China suggests the UK should have an independent foreign policy.
• Chinese vendors have secured smart city infrastructure contracts in about 50 cities worldwide, mainly in less democratic countries.

Economic and Market Factors

• Chinese CEOs have pledged support for President Xi Jinping's "common prosperity" policy.
• Regulation of technology giants and the use of personal data for commercial purposes remain global concerns.
• Smart cities present huge market opportunities in China.
• Overdevelopment has led to ghost towns and financial strain on developers like Evergrande Group.
• If China's economy weakens, smart city projects could face challenges.

Benefits and Future Directions

• Smart city apps aided in containing the spread of Covid-19, allowing China to recover economically faster.
• Edwin Diender at Huawei believes these technologies are crucial for the future, especially in energy transition.
• Smart cities should prioritize livability, sustainability, and public good over technology-centric approaches.
• Future urban development should focus on infrastructure upgrades that address challenges from rapid urbanization.
• China aims to lead in smart city technology, both domestically and globally.
• China's urban landscape is poised for significant transformation in the coming decades.