China’s biggest economic buzzword this year could be the “six networks”, as Beijing aims to use infrastructure investment to inject fresh momentum into an economy facing persistent headwinds such as weak domestic demand and a prolonged property downturn. The scale is substantial, with investment expected to exceed CNY7 trillion this year alone, according to the National Development and Reform Commission (NDRC). During the five years through 2030, combined investment in just three of the six networks – water, power grids and underground utility pipelines – is projected to exceed CNY16 trillion.
The program covers the national water network, power grid, computing network, next-generation communications network, urban underground pipeline network and logistics network. While some of these involve traditional infrastructure, others are closely tied to China’s push into artificial intelligence and other hi-tech industries. Expanding data centers require reliable electricity, while computing hubs need high-speed communications links. Upgrading the power grid is also critical as China adds large amounts of solar and wind capacity. Investment in the water network alone is expected to create more than three million new jobs in the coming years, while funding for power-grid improvements is projected to unlock more than CNY10 trillion in total supply-chain investment.
“Over the longer term, China’s ‘six networks’ should be understood primarily as an effort to upgrade and replace existing infrastructure, rather than simply build more of it,” said Xing Zhaopeng, Senior China Strategist at ANZ Research. This would help stabilize investment without adding excessive new capacity, he added. China’s overall fixed-asset investment, covering major areas such as infrastructure, manufacturing and property construction, fell by 6.7% year-on-year in the January-July period.
Among major milestones, China’s intelligent computing capacity reached 1.882 million petaflops, 2.5 times the level of a year earlier. The country is also deploying an upgraded version of 5G, known as 5G-Advanced, with enhanced capabilities such as higher speeds, while key 6G technologies have entered testing, the report said. In logistics, the Pinglu Canal is on track to open to navigation later this month, supporting surging trade with Southeast Asia. The 134 km canal links Nanning, capital of Guangxi, to the Gulf of Tonkin, also known as the Beibu Gulf, between China and Vietnam. With climate risks and natural disasters becoming more pronounced, urban underground infrastructure could receive greater attention in the near term, while computing and transport were likely to remain longer-term priorities, Xing said, as reported by the South China Morning Post.
