At the 8th China Internet of Things Industry and Smart City Development Conference, held on December 20, Li Wei, Deputy Director of the High Technology Division at the Ministry of Industry and Information Technology (MIIT), highlighted the government's ongoing efforts to establish key technical standards in the IoT sector. He emphasized that the MIIT is actively promoting industrial applications and preparing to release the "IoT Comprehensive Standardization Guide" soon, which is expected to provide a clearer framework for the industry’s growth.
The Internet of Things is rapidly evolving and is considered one of the most transformative technologies of the future. According to McKinsey, by 2020, IoT adoption could generate up to $1.9 trillion in productivity gains and reduce production costs by $177 billion, significantly impacting the global economy. In China, the IoT industry has already taken shape, with a complete ecosystem covering chips, components, equipment, software, system integration, operations, and application services. The industry's scale has surpassed 930 billion yuan, with an average annual growth rate of 25%. M2M connections have already exceeded 100 million, showing strong momentum.
Li Wei also noted that China has developed a clustered IoT industry pattern across four key regions: the Bohai Sea, Yangtze River Delta, Pearl River Delta, and central and western China. The construction of demonstration bases in Wuxi, Chongqing, Hangzhou, and Fuzhou has made initial progress, with more such centers planned in the future.
Despite this progress, Wu Hejun, an academician from the Chinese Academy of Engineering, pointed out that China’s overall IoT platform is still in its early stages. While the industrial IoT is seen as the most promising application area—expected to account for about 70% of IoT use—China’s industrial IoT remains in its infancy.
According to the MIIT’s “13th Five-Year Plan†targets, by 2020, China aims to establish a globally competitive IoT industry. The total market size, including perception manufacturing, network communication, and intelligent information services, is expected to exceed 1.5 trillion yuan, with over 1.7 billion M2M connections.
However, challenges remain. Li Wei identified several bottlenecks, including weak core capabilities in areas like chips, sensors, and operating systems. For example, the import ratio of mid-to-high-end sensors is as high as 80%, and sensor chip imports reach 90%. Multinational firms dominate the MEMS sensor market in China, holding around 60% of the share. Additionally, there is a lack of synergy between different parts of the supply chain.
Security is another major concern. Qi Hexuan, an academician from the Chinese Academy of Engineering, warned that industrial IoT networks are often connected and vulnerable. Even if not directly linked to the internet, they can be compromised through human error or poor management. The 2017 ransomware attack that affected many internal networks serves as a stark reminder of the risks involved. A security breach in the industrial IoT could lead to severe consequences, emphasizing the need for stronger protection measures.
Standardization is also a critical issue. The lack of interoperability among IoT devices—such as sensors, interfaces, communication protocols, and management agreements—hinders widespread adoption. Li Wei noted that many organizations lack sufficient authority to drive standardization efforts effectively.
Looking ahead, the MIIT plans to expand IoT applications by integrating it with smart manufacturing and deepening its role in smart cities. This includes using IoT in urban management, energy efficiency, transportation, and other sectors. Yin Hao, an academician from the Chinese Academy of Sciences, emphasized that IoT is the nervous system of smart cities. Combined with big data, cloud computing, and AI, IoT enables cities to collect and analyze vast amounts of data, enhancing operational precision and enabling more efficient city management.
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