On May 31, The State Council issued a Circular on the issuance of a Package of Policies and Measures to Stabilize the Economy. They include a package of policies and measures to Stabilize the economy, a total of 33 measures in six areas. We put forward a package of policies and measures to stabilize the economy in six areas: fiscal policy, monetary and financial policy, ensuring investment and consumption, ensuring food and energy security, ensuring the stability of industrial and supply chains, and ensuring basic people’s wellbeing.
Tao Xujun, digital director of Nomura Comprehensive Research, believes that the communication operation industry is the basic construction operator of the digital economy and the core participant of the operation of the digital society. The building blocks of the digital economy include: computing power, storage, transmission, data, software and hardware applications. The communication industry is dominated by three: computing power, storage and transmission; Full participation has one: data; Deep involvement has one: application. In the industrial chain of digital economy, the communication industry is the complete leader. The communications industry has three roles in an industry-wide drive to protect the economy.
One of the economic roles: the leader of cloud network infrastructure investment and operation
Before the introduction of economic policy, the “east and west calculation” plan has just come out. This top-level plan spanning the “digital” and “double carbon” fields pushes the communication operation industry to the public. In addition to the network, actually computing power and storage infrastructure, is also the main business of communication operators. Cloud network integration, digital infrastructure, has been clearly put forward by operators of the backbone nature of the main business.
The year 2022 started with a major epidemic, with the four first-tier cities of Shenzhen, Guangzhou, Shanghai and Beijing successively experiencing outbreaks of the virus. As the country fights the epidemic, the flow of logistics, trade and people has been hindered. Retail sales of consumer goods fell 11.1 percent in April and 6.7 percent in May. As a social basic service industry, the communication operation industry has also encountered some development difficulties. Under such circumstances, relatively aggressive network and infrastructure investment plans still need to be rationalized.
The direct effect is the economic benefits of the industrial chain brought by these investments. The entire telecommunications industry is actually driven by the investment of operators. Maintaining this scale of investment in infrastructure could be a boon to the industry as a whole.
The indirect effect is to lay the foundation for the development of a digital economy. Whether it is the metaverse theme, web3.0 theme, or the e-commerce theme that stimulates retail, in fact, it is related to the complete infrastructure and the quantity of supply. Providing an affordable market price for cloud access is critical to the development of the digital economy. The East-West arithmetic provides a good top-level solution guide to alleviate the tension of arithmetic power and the contradiction between power and carbon emission control in the developed eastern region. The uneven investment in computing power and the return on investment in the telecommunications industry can also be addressed. It can also contribute to the two carbons. In addition to the east and the West, the east also needs to transform the traditional computing power into new comprehensive energy, and the newly built computing power center undoubtedly needs new energy. Such investment has a good driving effect on the new energy industry.
Economic role 2: Strong enabler of social application of big data
The communications industry is a natural producer and user of big data. Communication operators have contributed travel codes in the fight against the pandemic, also based on users’ spatiotemporal data. Under the new epidemic situation, the application of big data that is more accurate and convenient and takes more account of personal privacy issues, and reduces the work intensity of streaming control can ensure the balance between the fight against the epidemic and development. Communications operators, which hold the most spatial and temporal data, are still the dominant force.
To ensure the effectiveness of the fight against the epidemic, the immediate need is to maintain economic development.
The third role of economic protection: the strong support of social operation application
The communication industry, especially the communication operators, has also contributed to the combination of software and hardware applications such as digital sentry, providing a strong guarantee for the resumption of work. Admittedly, the current major Internet applications are not contributed by the communication industry, but the Internet industry. However, the communication industry also actively participates in the construction of the mobile Internet society. Both operators and equipment providers have a deep layout in applications and the Internet of things in various industries. Even in terms of investment and incubation of innovative applications, there is a big positive effect.
Industrial Internet especially needs the combination of cloud, network and application. The communications industry has the capital, technology and operational experience to play a very positive role in forming a digital ecosystem with innovative companies in the industry. The development of digital industry is self-evident in promoting a new round of economic development.
The communication industry is the new foundation of the society and the new foundation of the economy. For the communication industry, the economic protection initiative is not only a great business opportunity to join the whole society in economic recovery, but also a social responsibility to do a good job in supporting the digitalization of all industries.