China is one step ahead and leading 5G innovation

The importance of strengthening the deployment of 5G is more than a matter of technological mastery; it is the new “steam engine” in the fourth industrial revolution due to its economic benefits.

(Expansion) - We are witnessing a series of geopolitical tensions affecting technology. Europe, but mainly by imposing restrictions on the use of equipment of Chinese origin among federal officials, and restricting the import and sale of equipment from Chinese companies, promoting a dynamic that threatens free competition.

What is the US really afraid of? Recently, US Treasury Secretary Janet Yellen said that decoupling the economies of both nations is impossible. This is because both countries are actually highly dependent on technology. But when it comes to 5G innovation, China is leading the way.

According to statistics from the World Intellectual Property Organization ( WIPO ) as of September 2022, 46.6% of global patent applications came from China, followed far behind by the United States (17.4%) and Japan (8.5%).

Chinese companies' patents were concentrated in three areas: first, computer technology; second, digital communication; and third, electrical machinery, appliances and energy.

Specifically regarding 5G technology, China leads the list of patents granted with 21% of the total worldwide - with the sum of the production of a small number of companies - according to data from IPlytics . The development of this mobile technology is also dominated by Asian companies, as five companies from that region are in the first eight places of granted patents.

In contrast, the United States has only one company with 12.9% of the patents for this technology among the top eight places in 5G patents in the world, two European (Nordic) companies sneak into that list.

Rather than a competition where China and the United States step on each other's toes and respond with equal magnitude of restrictions to each other's decisions, their cooperation will accelerate the development of industries, the expansion of effective connectivity and global economic benefit.

The importance of strengthening the deployment of 5G is more than a matter of technological mastery; it is the new “steam engine” in the fourth industrial revolution due to its economic benefits.

In fact, mobile technologies and services contributed 7.4% of Latin America's gross domestic product (GDP) in 2021; that is, more than 345 billion dollars (mdd), according to data from GSMA . In addition, the mobile sector generated approximately 1.6 million jobs and produced a tax collection of almost 30 billion dollars. This organization, which represents the world's mobile operators, expects that by 2025 the economic contribution of the mobile sector will be 365 billion dollars in added value.

Furthermore, the International Telecommunication Union (ITU) estimates that a 10% increase in fixed broadband penetration in the region would lead to a 1.9% increase in gross domestic product (GDP) per capita, according to a 2019 econometric report . Given the close relationship between connectivity, the growth of national economies and prosperity, the right path for the world to welcome the dragon's force of 5G is cooperation.