China to address risks from new infrastructure by Reuters

BEIJING (Reuters) – China will tackle risks of fragmentation and imbalances as it tries to build new infrastructure aimed at modernizing its manufacturing sector, the government said on Wednesday.

China has built the world’s largest 5G network and fiber optic broadband infrastructure with growing capabilities in artificial intelligence, according to a notice issued by state agencies including the industry ministry, finance ministry and central bank.

“However, development issues such as coordination and integration difficulties, lack of coordination and imbalances are becoming increasingly important,” the statement said.

It also highlighted the problems of uncoordinated development and regional disparities in the new information infrastructure.

The new infrastructure will lead to the development of “new productive forces” in the economy and support the modernization of industries with the objective of building a strong manufacturing nation, the agencies said.

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

With traditional infrastructure investments in roads, rail and bridges yielding diminishing returns, China is increasing its focus on “new infrastructure” projects, including 5G telecommunications, artificial intelligence and big data.