East-to-west transfer of data and cloud resources and many other new infrastructure projects are currently underway across China. Local governments have recently released their 2022 investment plans for key projects, which show expanding the coverage of 5G networks, starting the construction of big data centers and accelerating the industrial rollout of artificial intelligence (AI) have replaced traditional infrastructure as the new investment preference.

New infrastructure covers three sectors: infrastructure for information technologies such as 5G communications, the Internet of Things, industrial Internet, AI and cloud computing; infrastructure that helps upgrade traditional industries through the application of new technologies such as smart transportation and energy facilities; infrastructure that supports innovation, such as infrastructure for cutting-edge scientific and technological research.

The Central Economic Work Conference held in December last year vowed to invest in infrastructure in light of future needs, making new infrastructure a focus in 2022. The government work report this year has set the target of ensuring GDP growth of around 5.5 percent, and effective investment will be an important measure for ensuring this stable expansion. Under the guidance of government policy, new infrastructure also becomes a new favorite of investors.

The Chinese economy has been under pressure to achieve robust growth; thus new stimulus is badly needed. While traditional infrastructure has been greatly improved over recent decades, new infrastructure has become an equally worthy priority. New infrastructure is regarded as a new powerhouse for linking the huge investment and demand from businesses with the powerful and continuously upgrading consumption market.

What is more important is that, in addition to the role of ensuring stable growth in the short term, new infrastructure is vital to sustaining the momentum of the Chinese economy.

In the medium and long term, digital transformation will help optimize China's economic structure. Necessary for creating new opportunities for development and establishing future competitive advantages, new infrastructure is of high strategic value to both central and local governments.