China pushes global 5G expansion as tech rivalry with US deepens

China is working to expand 5G connectivity on a global scale through its own technological systems, while the US takes a more security-focused approach amid rising demand for fast, low-latency internet infrastructure to support technologies like artificial intelligence (AI) and self-driving vehicles.

Fifth-generation, or 5G, networks offer faster speeds than 4G and enable real-time services across a large number of connected devices. The low latency and high bandwidth make 5G essential for processing large volumes of data and powering automation technologies.

The US and China's tech rivalry extends to 5G connectivity, as Beijing offers significant incentives to operators and manufacturers to pave the way for the technology's expansion, with over 4 million base stations currently operating in China, coupled with a target of reaching 4.5 million by the end of this year.

Chinese telecom giants such as Huawei and ZTE have deployed cost-effective 5G infrastructure both domestically and globally. By the end of 2024, China's 5G subscriber base had surpassed 1 billion, with a 71% penetration rate. Experts estimate that the global 5G economy will add more than $1 trillion in value by 2030 due to its efficiency and opportunities.

In contrast, the US 5G infrastructure is largely developed by private companies. Washington has prioritized network security and collaboration with allied nations. The Federal Communications Commission has banned several Chinese firms' equipment, including Huawei and ZTE, labeling them national security threats.

Countries such as Australia, Japan, the UK, and Canada have imposed restrictions on Chinese telecom equipment, further limiting Huawei's market access. Still, Huawei remains a major 5G player in numerous countries.

Alternative suppliers, such as Swedish Ericsson and Finnish Nokia, both of which develop 5G solutions, came to the fore in various markets, including the US. American operators seem to prefer these firms, as well as South Korea's Samsung, for their 5G infrastructure.

While US-based companies are less dominant in the base station segment, they contribute vital components to the 5G ecosystem. Chipmaker Qualcomm produces 5G modems for smartphones, while Oracle and Cisco develop infrastructure software.

Both countries are also looking ahead to sixth-generation, or 6G, technology. China launched the world's first 6G test satellite last year, while the US continues to invest in various 6G research and development programs.