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.

For more information on companies in this article

Related Content

  • Economic stimulus packages - shift in emphasis on exit strategies
    July 19, 2012
    Jack Short of the International Transport Forum discusses the role of stimulus finding and the path in and out of recession. The US Government has grabbed many headlines with the American Recovery and Reinvestment Act (ARRA), its response to the need to do something to prevent stagnation in the face of the recent economic downturn.
  • The Middle East takes lead in urban mobility
    November 24, 2017
    Ralf Baron, Thomas Kuruvilla, Morsi Berguiga, Michael Zintel, Joseph Salem and Mario Kerbage from Arthur D. Little explain why there is much to be learned from the Middle East about the rapid evolution of transport systems. The rapid urbanisation across the globe is leading to mobility challenges as cities struggle to ensure their populations can move around freely using both public and private transport. Solving these issues is critical to ensuring that cities thrive and attract the investment and
  • Big data and open governments ‘will spur developments in smart cities’
    March 23, 2015
    Smart cities are going to be amazing community hubs that will be more sustainable, efficient and supportive of citizens, according to a new report, Australia - Smart Cities - People, Transport, Cars, Buildings from reportbuyer.com. The concept of smart communities is based on intelligent infrastructure such as broadband (FttP) and smart grids, so that connected and sustainable communities can be developed. However, they cannot be built within the silo structure that currently dominates our thinking; a holis
  • Inrix and CenNavi to deliver premium traffic services in China
    January 8, 2013
    US-headquartered traffic information and driver services provider Inrix is to partner with China’s traffic information services provider CenNavi to deliver premium real-time, predictive and historical traffic services across China. The companies say the collaboration leverages Inrix’s sophisticated traffic intelligence platform, vertical market expertise and connected services technologies with CenNavi’s real-time traffic information and advanced technologies, domestic experience and automotive relationship