Skip to main content

China plans more ITS deployment despite economic slowdown

The Chinese government is turning to ITS to help solve urban traffic congestion in the majority of its large cities. Eugene Gerden reports. China is investing an estimated 3.5bn yuan ($551 million) per year in ITS and while the country’s current economic strategy may see this decline, the government plans to continue active development of the national intelligent transport system.
March 30, 2017 Read time: 4 mins
Chinese road in Bejing in peak hour

The Chinese government is turning to ITS to help solve urban traffic congestion in the majority of its large cities. Eugene Gerden reports.

China is investing an estimated 3.5bn yuan ($551 million) per year in ITS and while the country’s current economic strategy may see this decline, the government plans to continue active development of the national intelligent transport system.

A Chinese Ministry of Transport (CMoT) spokesman said the development of ITS in the country will continue in accordance with the existing state program: The development of transportation sector in China during the period of 2012-2020.

According to Hong Xiaofeng, deputy director of the Department of Science and Technology for CMoT, amid the country’s ever-growing number of cars, the government plans more active use of smart transport technologies to optimise the traffic network and lower carbon emissions.

Underlining the importance of implementation of these plans is a CMoT that forecasts the number of cars in the country will exceed 200 million by 2020.

Wang Xiaojing, chief engineer at the Research Institute of Highways (part of CMoT) said the initial stage includes plans to install electronic road signs on the streets of the largest cities. He added that these installations will show data collected through the use of intelligent traffic technologies.

As ITS International went to press, CMoT was completing the integration of new electronic toll collection (ETC) systems enabling free-flow tolling on the highways in Shanghai and other large cities.

According to Li Zheliang, deputy director of the Shanghai Road Administration’s road network monitoring centre, the city now has more than 220,000 vehicles using the ETC service with about 80,000 cars being equipped with the device every year since 2009.

The introduction of new ITS technologies is planned to take place in cooperation with foreign partners – one example being Chinese telecommunications equipment and network solutions supplier ZTE. It has signed a 1.2bn yuan (US$186 million) deal with Ruselectronics, one of Russia’s leading electronics organisations, for the supply of Russian ITS solutions for the Chinese transport system and local transport infrastructure.

Among the new products are an ‘intelligent antenna system’ and other ‘Smart City’ technologies.

According to Wu Zhongze, head of the China Intelligent Transportation Systems Association, last year the total value of the Chinese ITS market was 100 billion yuan (US$16 billion). The Chinese government has already planned and implemented the installation of ITS on the country’s 12,000 mile high-speed railway network.

The planned volume of investments in ITS has not been disclosed but the majority of funding is expected to come from state sources, with private investors providing the rest. To that end, the Chinese government has announced its plans to create conditions more conducive to private investments in the ITS field and to entice the country’s leading IT vendors to design new ITS systems for the country’s transport sector.

Currently, the leading ITS solutions providers in China include local companies United Electronics, Qiming Information Technology, Navinfo, Wanda Zixun and China Transinfo. There are also plans to attract Western vendors like German software company 7352 SAP which has been participating in the Chinese market for several years. 

However, analysts of the China Intelligent Transportation Systems Association say further development of China’s ITS market may be hampered by the lack of necessary infrastructure and a potential shortage of investments due to the beginning of the economic recession in China.

China has been investing an estimated 3.5bn yuan ($551 million) in ITS annually but the country’s current economic decline may see this level of investment fall significantly this year. 

CMoT also plans to install ITS applications on smartphones (particularly those produced by Chinese manufacturers such as 6787 Huawei). Smartphone use in China has already reached the level of 1.2 billion and the envisaged applications will help users make mode transfers.

 About the Author: Eugene Gerden is an international freelance writer, based in St. Petersburg, who specialises in current affairs.

Related Content

  • May 30, 2013
    SAP and China to cooperate on ITS
    German software company SAP plans to enter into a strategic cooperation with the Chinese government on the development of intelligent transportation systems to help manage traffic in China’s fast-growing urban areas over the coming decades. SAP and the Chinese High-Way Group plan to enter into broad collaboration for research on integrated solutions for transportation communications and the development of intelligent traffic management systems leveraging advanced software solutions from SAP for big data pow
  • May 30, 2014
    The Asia-Pacific poses a multitude of ITS challenges
    The Asia-Pacific ITS Forum and Exhibition in Auckland, New Zealand, provided a focus for the region’s ITS Associations. Mary Bell reports. In late April, ITS New Zealand hosted the 13th Asia-Pacific ITS Forum and Exhibition in Auckland. Around 350 delegates from 24 nations gathered to share and advance ITS applications on both strategic and technical levels and to discuss the differing and various challenges faced in the region.
  • November 5, 2012
    China may miss electric vehicles goals
    A new report from Bloomberg New Energy Finance suggests that China may miss its ambitious goals concerning alternative energy and clean transportation. The country’s economy is growing quickly and along with this, citizens are finding it possible to afford vehicles of their own. The Chinese government is not inclined to allow reliance on fossil fuels to linger longer than necessary, however, and recently launched an ambitious plan that would promote the adoption of electric vehicles. In July 2012, the Chine
  • March 18, 2020
    Moscow pins hopes on V2X
    A new transport strategy is aimed at creating conditions for the introduction of new ITS developments within Moscow – and 5G and V2X are on the agenda