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Xuefei (Michael) Peng

An Update on China's Internet of Things

1/28/2010 17 comments
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Late in 2009, Chinese Premier Wen Jiabao called in a speech for the development in China of the “Internet of Things” -- the use of wireless sensor networks to manage a range of processes in industry and government. Wen’s speech was followed by an announcement from China’s Ministry of Industry and Information Technology (MIIT) making the Internet of Things a priority and establishing a working group on wireless sensor networks.

The basic application of Internet of Things in China can be traced back to the “Golden Card Project” in 2004 that initiated a number of trial industry uses of RFID technology in a range of applications, including the following:

  • Agriculture apps, such as pig and ox raising
  • Meat food processing
  • Mining industry applications
  • Supply chain management
  • Package delivery and luggage handling
  • Transportation
  • Electronic customs and border processing

Additionally, there have been new developments. In some trials, mobile payment applications have been combined with smart cards and “electronic wallets” to turn mobile phones into RFID-enabled readers for the automatic purchase of certain foods, drugs, liquors, and other retail items.

Also, in recent years, Shanghai Mobile has deployed about 100,000 chips managed by a central controlling system in taxicabs and buses to ensure orderly and safe transportation in metropolitan areas with data collection, transmission, processing, and management.

So even though in 2009, few people here knew the phrase the Internet of Things, and most people merely considered these applications as RFID apps, Premier Wen’s speeches and other initiatives have made the Internet of Things trendy almost overnight in China.

Internet-of-Things-concept companies are trading heavily in the stock market here, including chip design companies such as Shanghai Beiling Co. (China Shanghai: 600171) and Tsinghua Tongfang (China Shanghai: 600100); tag companies such as Eastcom Peace (China Shenzhen: 002017) and Jiangsu Changjiang Electronics Technology Co. 9 (China Shanghai: 600584); tracking system companies such as Invengo Information Technology Co. (China Shenzhen: 002161; intelligent power grid firms like Shenzhen Woer Heat-Shrinkable Material Co. (China Shenzhen: 002130); and intelligent transportation firms like Bright Oceans Corporation (China Shanghai: 600289).

In China, government will continue to be the major force driving the Internet of Things. There are still obstacles, however.

For one thing, the slow deployment of IPv6 is a big bottleneck for promotion of the Internet of Things. Compared with China’s huge population, China’s IP addresses are very limited. China currently has about 400,000 IPv6 users and plans to reach 1 million users totally in 2010. In comparison, China owns more than 200 million IPv4 addresses, but will use this quota up in 2012.

China Telecom Corp. Ltd. (NYSE: CHA) deployed China’s first IPv6 business network in December 2009 -- a crops greenhouse equipped with an integrated control system that can monitor and control temperature, humidity, light intensity, water in soil, etc., in real time to raise plants. The project was undertaken with Huawei Technologies Co. Ltd. ’s IPv6 equipment.

Regardless of obstacles, the government in China aims to push national industry to make a breakthrough in wireless sensor networking, a key technology in the Internet of Things. And the wireless sensor network will be first deployed in infrastructures, environmental detection, public security, industrial control, and healthcare.

— Xuefei (Michael) Peng is a freelance analyst with Light Reading.

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DHagar
Thinkernetter
Wednesday February 3, 2010 5:58:37 PM
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Interesting post, Xuefei.  The government is definitely making some smart moves in investing in the infrastructure that will serve the designated businesses and population of China.

It makes sense that they don't invest in the commercial applications that Western culture would use.  With the Internet of Things they are building, it will serve the core society and provide beneficial services to the people of China.  It takes that type of leadership and investment many times to take the lead in innovation and applications.

DHagar

Xuefei Peng
Rank: Web master
Monday February 1, 2010 9:14:12 AM
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I think, for Internet of Things, the impact will be big.

Carol
IQ Crew
Sunday January 31, 2010 9:50:57 PM
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with wireless sensors, it will be easier to put up the sensor and track people.

 

Also, there will be mashable applications where you fuse together a number of sensors.

Asad
Researcher
Sunday January 31, 2010 9:32:09 PM
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Thanks for sharing this post. It is very intersting to know that "internet of things" is hot in China. Although research in sensor networks in many applications has always been very facinating specialy when we consider the type of services that can be offered and its high profile impact on industry that is already out there. China's seriousness in taking up this research would defintely drag the world faster towards its porposed goals.

Alan Joch
IQ Crew
Sunday January 31, 2010 2:42:44 PM
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Peng, Thanks very much for your post. It's great to get an insider's perspective on technology developments in China. In that vein, I wonder if you could speculate a little on what the impact might be of having China's premier and the MIIT as active supportors of this effort. In the U.S., a high-level call for technology R&D might grab some initial headlines, but interest can wane, especially when it comes time to come up with funding. I suspect things may be different in China.

 

Xuefei Peng
Rank: Web master
Friday January 29, 2010 9:14:09 PM
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I agree, Ira. Thank you.

Xuefei Peng
Rank: Web master
Friday January 29, 2010 9:11:45 PM
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Hi, Ashish.

So far, no Chinese version of wireless sensor networks technology is proposed in public yet.

 

Xuefei Peng
Rank: Web master
Friday January 29, 2010 9:08:06 PM
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Hi, nasimson.

Google owns a large and loyal group of users in China. We don't want to see that Google leaves China. As Baidu and Bing aggressively take market shares right now, if Google quits, it will be too difficult for Google to get back to China's market. 

Ira Winkler
Thinkernetter
Friday January 29, 2010 11:01:55 AM

Peng, actually the point of my quote was that with a concept of networking everything, security better be embedded in everything at multiple levels, what version of IP you're running is irrelevant for example if you leave a wireless device wide open.

aum007
IQ Crew
Friday January 29, 2010 10:57:25 AM

Peng,

Could you elaborate a little on the Technology side of things-I majored in Wireless Sensor networks(although I currently work in Security),I find the field extremely fascinating.Could please tell us if they Use Zigbee in China or its some other implementation?

I know the Chinese Govt is very keen on homegrown technology solutions(like their own version of GSM/CDMA),do they do something similar here or simply use off the shelf stuff that is similar to what we manufacture in America as well?

Best Regards

Ashish.

 

 

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