Infrastructure as power: China and its national connectivity strategy

The "Blue Book on the Development Status of Universal Telecommunication Services" (电信普遍服务发展状况蓝皮书), published by the China Academy of Information and Communications Technology (CAICT) on September 24, 2025, is much more than a simple technical report. While celebrating the success of providing connectivity to rural areas, it also lends itself to a deep reading in the context of great power competition. Beneath the stated goal of ensuring everyone has access to modern communication services at an affordable price, lies a cornerstone of Beijing's strategy to strengthen internal stability, stimulate the digital economy, and project its development model globally. Universal connectivity is viewed not just as a social right, but as a fundamental geoeconomic and geopolitical lever.

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Geoeconomic Analysis: The "National-Led System" Approach

The Chinese approach is a clear manifestation of geoeconomics, where economic power and national security are inextricably linked. The document highlights how the Chinese model has overcome "market failures" in rural and remote areas where private investment would have been insufficient. This centralized approach, known as the "national-led system" (举国体制), is presented as a decisive advantage over Western models, which are often fragmented and market-driven.

Funding and Key Players

China has mobilized vast resources for this strategic objective. Between 2015 and 2025, the central government allocated a total of 31 billion yuan in subsidies, creating a long-term compensation mechanism. The main telecommunication companies, all state-controlled, have been the engines of this transformation, with a clear mission that goes beyond profit.

• China Telecom has invested nearly 30 billion yuan and has built 27,000 4G base stations and over 4,000 5G base stations.

• China Mobile has invested over 16.5 billion yuan over a decade, building 34,600 4G base stations and 908 5G base stations in remote and rural areas.

• China Unicom has invested over 10 billion yuan to provide connectivity to about 20 million people.

• China Broadcasting Network (China Broadnet) began participating in the program in 2016.

• China Tower, the company that manages the transmission towers, has invested over 8.5 billion yuan, building over 65,000 sites for universal telecommunication services and reducing the need for duplicate constructions.

The Impact on the Rural Digital Economy

The document highlights how this infrastructure has activated "new dynamics" in rural areas, transforming villages into hubs of digital activity. The network has enabled the development of new business models and applications, such as e-commerce, livestreaming, smart agriculture, and digital public services. Statistics show a surge in online retail sales in rural areas, which grew from 353 billion yuan in 2015 to 2.5 trillion yuan in 2023. This approach not only strengthens the domestic economy but also extends state control over the network, bringing both economic and political benefits.

Geopolitical and Military Dimension: Connectivity as National Security

The "Broadband Border" (宽带边疆) Project

A crucial aspect of the report is the launch of the "Broadband Border" (宽带边疆) project, which has direct implications for national security and defense. The goal is clear and bold: by the end of 2025, border areas, inhabited islands, and settlements with more than 20 households must have 100% broadband coverage (including fiber, 4G, or 5G). This project, which involves 13 ministries and nine border provinces, is not just about civil development. A reliable communication network is vital for territorial control, border security, and military operations in remote and hard-to-reach areas. The document describes it as a "solid strategic support" for the "modernization of national governance".

Satellite Communications: Autonomy and Control

Although the document does not delve into satellite communications for civil purposes, it does mention a detail of great strategic importance. Starting in 2021, the universal telecommunication services program promoted the use of the BeiDou satellite navigation system as the primary timing source for communication base stations. This indicates a clear push for technological autonomy and a reduction in dependence on global navigation systems like the American GPS. Control over a national timing system is a fundamental requirement for the security and efficiency of telecommunication networks, with obvious implications for defense.

Data Control and Social Governance

The widespread construction of the communication network allows Beijing to monitor and manage the flow of information across the country. Applications such as "smart party building" (智慧党建) and "smart monitoring" (智慧监控) strengthen governance and security in rural areas. The rural surveillance network, the so-called "bright eyes project" (雪亮工程), and the use of artificial intelligence apps for home security and community management show how digital infrastructure is a powerful tool for social control that extends even to the most remote areas.

Comparative Analysis: The Chinese Model in a Global Context

The Blue Book offers a direct comparison with the universal telecommunication services models of other countries, positioning China as a global leader and an example to follow.

• United States: The report notes that, despite an annual fund of about 8 billion dollars, rural broadband coverage is still very limited. As of late 2023, about 80% of rural U.S. homes had access to a fixed speed of 100/20 Mbps, but only 44% had fiber to the premises (FTTP). It is also highlighted that over 14 million households and businesses still lack mobile 5G coverage.

• Germany: Broadband coverage in rural areas is "significantly lower" than in urban areas. In mid-2023, only 86.3% of rural homes had access to high-speed broadband (greater than or equal to 30 Mbps).

• United Kingdom: The report cites a survey from early 2025 showing that only 33% of farmers have access to a fiber optic network, and 21% have broadband speeds of less than 10 Mbps.

• India: Despite progress, the report notes that fiber optic coverage in rural areas is still under development. By the end of 2024, 95% of villages had 4G coverage, but only 214,000 villages (about a third) were connected to the high-speed fiber network.

The document concludes that China, thanks to its "systemic advantage" and "strategic foresight," has achieved results in a short time that remain distant goals for many other countries. The Chinese approach, characterized by a strong state role, massive investment, and long-term planning, is presented as the "Chinese solution" (中国方案) to the global digital divide.