China to invest 1.2 trillion yuan in information infrastructure

BEIJING - China will invest big in information infrastructure in the next three years as a way to help develop the new economy and foster growth momentum.

About 1.2 trillion yuan (around $170 billion) will be channeled into internet projects, mainly broadband and mobile network improvement, according to guidelines released Thursday by the National Development and Reform Commission and the Ministry of Industry and Information Technology.

The document sets a number of goals.

By 2018, a total of 90,000 kilometers of high-speed fiber-optic trunk cables will be built, expected to expand the broadband network coverage to all urban areas and 90 percent of the countryside.

China will add 2 million 4G base stations, mainly for townships and villages, and boost the proportion of mobile network users to 75 percent of its population.

The number of points of presence connected to overseas networks will be increased to 120, up from the current 80, in a bid to enhance connectivity to the rest of the world and satisfy rising demand for international exchanges.

The country will also promote IPv6 networks, support R&D for 5G technology, and encourage businesses to use cloud computing and big data.

The government will cut red tape, strengthen financing support, and attract private capital to join the program.

Confronted with sluggish traditional sectors, China is vigorously developing and applying information technology to upgrade industrial models and create new growth points.

The "Broadband China" strategy was floated in August 2013 to improve internet service.