Miao Wei, Minister of Industry and Information Technology (MIIT), stated on May 31 at the First Global 5G Conference that accelerating the development of 5G has become a strategic consensus among the international community. The Chinese government supports industry stakeholders in establishing the IMT-2020 (5G) Promotion Group to comprehensively advance 5G research and development, conduct 5G technology R&D trials, and establish broad 5G cooperation mechanisms with Europe, the United States, Japan, South Korea, and other regions.
Maturity of the 5G industrial chain is a systemic project—from foundational chips and modules to upper-layer core network equipment and infrastructure. A deficiency in any single link would impede rapid 5G deployment. Based on current 5G network rollout progress and user adoption trends, the maturity level of the 5G industrial chain continues to rise.
Chips constitute a critical foundation for 5G communications. Hou Mingjuan, Global Vice President of Qualcomm, stated at the World 5G Conference that over 230 5G devices powered by Qualcomm’s 5G solutions have either been launched or are under development—including 5G smartphones, 5G hotspots and CPEs, and 5G modules. By 2020, the 5G industry will enter a phase of large-scale commercialization.
Xiaomi Corporation is one terminal manufacturer benefiting from rapid 5G development. Lei Jun has repeatedly noted—in multiple public forums—that Xiaomi will launch more than ten 5G smartphones next year. At the World 5G Conference, Lei Jun expressed optimism about an imminent boom in the smartphone market, stating that the upcoming 5G device-replacement wave will significantly boost the entire smartphone market.
In fact, key players including Huawei, Samsung, MediaTek, and UNISOC have all achieved critical breakthroughs in 5G chip development—further supporting rapid 5G deployment. A comparative statistic illustrates this: during the first year of 4G deployment, only three terminal vendors launched products; in contrast, over 40 terminal vendors announced 5G product launches in the inaugural year of 5G.
Regarding network infrastructure, Chen Zhaoxiong, Vice Minister of MIIT, emphasized accelerating 5G network deployment to solidify foundational capabilities, promoting large-scale network construction, and prioritizing 5G coverage in key industries. Currently, major equipment suppliers—including Huawei, ZTE, Ericsson, and Nokia—offer comprehensive end-to-end equipment solutions, laying a solid foundation for telecom operators’ 5G network builds.
Xu Zhijun, Rotating Chairman of Huawei, believes China holds global leadership across multiple dimensions critical to 5G success: spectrum resources, base station site quantity and construction capacity, consumer awareness and demand, industry and enterprise participation, and governmental support. With the world’s most complete terminal industrial chain and globally leading 5G technologies, China is well-positioned to build the world’s best 5G network—if it fully leverages these advantages.
At the World 5G Conference, updates on 5G network deployment drew significant attention. Li Zhengmao, Executive Vice President of China Mobile, stated that in 2020, China Mobile will launch nationwide 5G commercial services across 340 cities—the largest 5G network rollout globally.
Wang Xiaochu, Chairman of China Unicom, highlighted that China Unicom and China Telecom are jointly building the world’s first 5G shared network. Through this joint construction and sharing model, customers will enjoy 5G services with doubled coverage, doubled data rates, and doubled bandwidth.
China Broadcasting Network (CBN)’s post-license actions also attracted market attention. Zhao Jingchun, Chairman of CBN, revealed that CBN is spearheading the formulation of an international standard for the 700 MHz 5G wide-band spectrum. Simultaneously, CBN has opted directly for a Standalone (SA) network architecture and is scientifically coordinating its network deployment strategy. CBN plans to officially launch commercial 5G services in 2020, offering both individual consumer services and vertical-industry applications.
Which 5G applications will become breakout hits?
Influenced by Google’s commercial cloud gaming service, A-share gaming stocks have exhibited sustained strong performance for several consecutive days. Following Google, Amazon plans to launch its own cloud gaming service next year. The company has already begun recruiting personnel from major game developers—including Microsoft—to accelerate this initiative and compete with Google, Microsoft, Sony, and others.
Cloud gaming’s maturity hinges on 5G’s high-speed, ultra-low-latency characteristics. Although cloud gaming is not a new concept, its widespread adoption depends critically on 5G infrastructure. Similarly, VR/AR industries—which previously struggled with mobile networks’ inability to meet stringent low-latency requirements—now find those constraints resolved in the 5G era.
Underlying cloud gaming and VR/AR lies a vast market potential for 5G applications. As 5G networks mature, 5G application development has become the next fiercely contested battleground for all participants across the industrial chain.
Wang Xiaochu, Chairman of China Unicom, noted that 5G will profoundly transform human-to-human, human-to-thing, and thing-to-thing interaction experiences—especially through high-definition video and VR/AR. China Unicom will establish a centralized, nationwide large-video operations platform, aggregating premium applications and content to deliver richer, higher-resolution, and smoother VR/AR viewing experiences, alongside diverse application services.
ZTE, in collaboration with Migu Video—a subsidiary of China Mobile—has commercially launched the 5G ‘New Perspective’ service. Its signature feature, ‘Free Viewpoint,’ enables users to swipe across their smartphone screens during video playback, causing the image to rotate freely around the sports arena—delivering immersive, full-scenario viewing experiences on demand. This capability represents a novel experience unique to the 5G era; Migu has designated it as one of the core capabilities for its ‘next-generation traffic monetization’ strategy.
Additionally, ZTE partnered with Guangdong Mobile and Tencent to deploy an end-to-end network slicing solution integrating Multi-access Edge Computing (MEC), demonstrating Tencent’s START cloud gaming service on this slice—accelerating the commercialization of new 5G business models.
Of course, 5G applications extend far beyond consumer-facing use cases. Broader opportunities lie in industrial internet applications—such as smart 5G factories and autonomous driving. To date, China Unicom has co-built a 5G smart factory with COMAC (Commercial Aircraft Corporation of China), achieving substantial improvements in aircraft manufacturing quality, efficiency, and productivity.
Autonomous driving remains another focal point. Cities including Beijing, Shanghai, Wuhan, and Changsha have established dedicated test roads for 5G-enabled autonomous vehicles. Leading automakers, top-tier internet companies, and telecom operators are each leveraging their respective competitive advantages to deepen engagement in the autonomous driving ecosystem.
Academician Yu Shaohua of the Chinese Academy of Engineering remarked during the World 5G Conference that three dimensions can help identify 5G’s landmark new applications and devices: (1) Human-to-human connectivity—exemplified by immersive virtual social platforms and games, with high-definition cloud VR/AR devices as representative hardware; (2) Thing-to-thing connectivity—exemplified by digital intelligent factories built upon industrial internet, with vertical-industry automatic control systems and robotics as representative hardware; and (3) Human-to-thing connectivity—exemplified by remote livestock breeding and grazing, supported by emerging biosensors and other novel devices.
What investment opportunities does 5G present?
Reporters observed that 5G’s impact spans an exceptionally broad industrial chain—including telecommunications, electronics, computing, and cultural media sectors. For industry analysts assessing sector outlooks, 5G has become an indispensable factor.
Regarding electronics sector beneficiaries, Dongwu Securities pointed out that accelerated 5G infrastructure deployment, strong consumer anticipation for 5G applications, and affordable 5G terminal pricing collectively reinforce the certainty of a 5G smartphone replacement cycle. Going forward, 5G smartphones will serve as a new growth engine for the global smartphone industry. This trend will drive increased demand for RF components—including RF switches, RF low-noise amplifiers, RF power amplifiers, RF filters, and antennas—as well as batteries. Relevant supply-chain companies stand to benefit substantially. Key recommended stocks include: ZOWEE (Shenzhen卓胜微), Sunway Communication (信维通信), and Lens Technology (蓝思科技).
Moreover, 5G’s high-speed, low-latency transmission capabilities are expected to significantly enhance VR/AR user experiences. The convergence of 5G and cloud rendering promises improved VR/AR visual fidelity while reducing hardware costs—facilitating broader VR/AR adoption. Additionally, edge computing—emerging from the 5G era—will inject fresh vitality into VR/AR applications, accelerating the sector’s takeoff. Key recommended stock: Goertek (歌尔股份); suggested watchlist includes Crystal Optoelectronics (水晶光电) and LCE (联创电子).
Shanghai Securities notes that as 5G networks expand, high-bandwidth consumer applications—including 4K/8K ultra-high-definition video, AR/VR, and cloud gaming—will progressively roll out. Ultra-HD video represents the next major technological revolution following digital HD video. The industry’s total scale is projected to exceed RMB 4 trillion by 2022, with user numbers reaching 200 million.
Meanwhile, 5G will gradually expand industry addressable markets: in the short term, it will improve download conversion rates for large-file mobile games; long-term, cloud gaming and VR/AR gaming hold enormous potential. Shanghai Securities specifically highlights that cloud gaming will significantly reshape the competitive landscape of the gaming industry.
Based on Shanghai Securities’ assessment, the firm assigns a ‘Buy’ rating to the media and entertainment sector for the next twelve months. Recommended stocks include: Enlight Media (光线传媒), Huace Film & TV (华策影视), G-bits (吉比特), Perfect World (完美世界), Youzu Network (游族网络), and Baotong Tech (宝通科技).
Of course, investors must accurately gauge timing when evaluating 5G’s impact on industrial chains and making investment decisions. Guosheng Securities observes that, according to the industry roadmap, 5G applications in broadcasting, education, culture, ultra-HD video, ubiquitous power IoT, and VR live streaming may be deployed earliest. Cloud gaming’s business model remains to be clarified, while autonomous driving and connected vehicles require multiple catalysts. Other areas—including VR/AR, video surveillance, and security—will need additional time before maturing.
Last updated: 2026-03-08