Smart City Initiatives in China

Overview & OutlookLi Tie, Chief Economist

The China Center for Urban Development

73.3

73.3% Urban Users 26.7% Rural Users

Internet Users

98.6% of Total Internet User

Users in China:0.829 billion

Global Users4.1 billion

Mobile Internet Users in China

0.817 billion

Rapid Penetration of the Internet

Rapid Penetration of the Internet

1 billion yuanCCTV New

Year Gala "Red Pockets"

Online Banking0.151 billion

Scale of Yu Ebao

1.86 trillion

3.681 million"Dataobao" created jobs

Bike-sharing Users

0.235 billion

“Dataobao”Merchandise

1 billion

0.61 billionMobile Online

Shoppers

59.6%Internet

Penetration Rate

28MBBroadband D/LAverage Speed

0.772 billionInternet Users

0.583 billionMobile NetworkPaying Users

56.53 millionAnnual Growth

of Internet Users

SmartCity

0.59 billionMobile Network

Video Users

0.817 billionMobile Internet

Users

3.94 hoursAverage Time Spent Online

per Day

0.4 billionOnline TourismMobile Users

0.406 billionOnline Takeout

Users

0.484 billionOnline Gaming

User Scale Innovative Municipal Governing

Internet+

A.I.

Sharing Economy

While smart cities are still fragmented, systematized applications in individual areas are gaining speed..

Smart E-commerce

Smart Transportation

Smart Healthcare

Smart Government

Smart Safety Control

Smart Public Security

Restricted

in individual areaaand lack

of organic integration

Integration of a systematized internet within each area is currently being explored.

The systemization of the internet within certain areas has been completed.But in relatively segregated areas, the internet is still fragmented.

To resolve various emergencies with intelligent solutions

While smart cities are still fragmented, systematized applications in individual areas are gaining speed.

iFlytek, TencentsMunicipal Governmental System

Inspur, ZTEUrban Big Data Center

HaierSmart Home

Government-sponsored smart city initiatives are slowing down due to concerns of increased government cost.

More than 500 cities in China are either in the middle of constructing or have announced their own Smart City initiatives.

Investment Scale close to 1 trillion yuan

39MIIT and NDRC's

"Broadband China" 277

Housing Systems

80NDRC's

Information to Benefit the People

Pilot Program

68MIIT Consumption

Pilot Programs

20MOST and

SAC

More than 500 cities

have launched their

own smart city

initiatives

Local cities continue to explore the possibility of a smart city: Wei County's Case

Integration of Application Systems2InterconnectivityCreating and Sharing of Resources

3The Smart Wei County Command and Control Center integrated a comprehensive management center, a network management center, and a 12345 hotline service center.

4

Utilization of Mobile Functionality1

The local government spends 1.5million yuan each year on services and management of the center

5

Local cities continue to explore the possibility of a smart city: Wei County's Case

37 million yuan invested in an optical cable network, data center, CCD cameras, local red-light cameras, etc.

15 million is allocated for 10 years' maintenance and other fees

Smart Community

Project(Top Floor

Design)

Hardware System(Infra-

structure)

Integrated Software

Development(Application

Platform)

Operation and

Maintenance(Operation,

Maintenance, & Update)

One-time Investment

Continuous Investment

40 million yuan invested in softwaredevelopment

Total Amount Spent on Smart City infrastructure in Wei County: 0.134 billion yuan

Local cities continue to explore the possibility of a smart city

Smart City continues to explore new ideas:(1) Sharing Economy

Bike-SharingDidi Taxi, Hitch, CarpoolCar-sharing

"Car-sharing" Active Users 2.0633 million

2018 User Scale

Realtime Ride-sharing

0.333 billion

Realtime Taxi-hailing

0.33 billion

As of April 30th 2018 ,Mobike recorded 48.1million active members and 7.1 bicycle in use in 4 months.

0.28

2.05 2.35 2.76

2016 2017 2018 2019Projection

0.1 billion ppl.Bike-sharing users in China 2016-2019

Smart City continues to explore new ideas:(1) Sharing Economy

Door-to-door ServiceTakeout & Catering Express Delivery

Smart City continues to explore new ideas: (2) Smart Parking

V5.0 High-elevation Visual SensorsV1.0

Meters+ManualV3.0

GeomagneticV4.0

Vision-sensor poles

V2.0PDA

Conventional Parking SolutionLow coverage. Need manual interception. Lack of back-end

algorithm support and effective monitoring platform

Smart City continues to explore new ideas: (2) Smart Parking

Smart Parking in Beijing

• In 2018, a total of 12,245 parking spaceswere covered by the on-street parking initiative in the Dongcheng, Xicheng, Haidian, Tongzhou, and Chaoyang districtsin Beijing.

• In 2019, 7,000 parking spaces are to be added to the Shijingshan and Fengtai districts.The city of Beijing is planning to achieve full coverage of all suburban areas by the end of the year.

Challenges

• Ongoing Fragmentation

• Technical Issues•Funding

• High Cost• ROI

Outlook(1) With the penetration of the internet, a smart city is the inevitable path.

Outlook(2) 5G technology will be intricately integrated with the smart city initiative

Internet of Everything

5G

Smart TransportationSmart Home

Smart Energy

SmartHealth-care

Smart Tourism

Smart Security

Smart Government

Driverless CarDrone……

Mobile VideoAR/VR

Smart Eco

Emergency Rescue

Smart Community

This year, China Mobile will launch its 5G data service in 40 mainland cities and will gradually open the service to the public.

China Unicom has started 5G pilot programs in 16 mainland cities.

It is expected that 29 global markets will kick-off their 5Gservices by the end of this year.

Outlook(3) Learn from the local smart city experience to perfect, popularize, and promote the innovative smart city initiative!

1.0 2.0 N.0

Smart City is an ongoing process of innovation and updating.The key of advancing from v.1.0 to v. 2.0 and beyond is system integration.

Thank You!