China Galaxy Securities has released a research report indicating that the pace of 6G technology development in China is accelerating, supported by a dense rollout of industrial support policies. The sector is being driven forward by satellite communications, space-air-ground integrated networks, and ubiquitous all-domain connectivity, which together unlock substantial long-term growth potential. The report suggests investors focus on three key industrial chain investment themes: (1) telecom operators, which are deeply involved in 6G R&D and the deployment of satellite-terrestrial integrated services while continuing to increase capital expenditure; (2) core 6G equipment manufacturers, which stand to benefit from network upgrades and rising demand for integrated communication-sensing-computing-intelligence devices; and (3) the space-air-ground integrated and satellite internet sector, where accelerating satellite constellation deployment is expediting the rollout of integrated terminal-satellite services.

Computing power and communication networks form the core of next-generation infrastructure, and the deployment of new-generation networks is progressing steadily, paving the way for large-scale commercial use. The report highlights that it is essential to actively respond to the trends of the latest technological and industrial revolution, seize the opportunities presented by next-generation communication network construction, and adhere to principles of application-driven development and appropriate forward-looking planning. Efforts should coordinate the advancement of foundational, space-based, international, and converged networks to solidify and enhance the competitive edge of China's information and communication industry. Strengthening innovation-driven and intelligence-led growth is also crucial, involving the widespread adoption of new intelligent terminals, the cultivation of high-value scenarios such as smart cities and intelligent manufacturing, and the continuous expansion of the industrial ecosystem.

Regarding communication network construction, as of the first half of 2026, the number of 5G base stations reached 5.102 million, with 32.86 million 10G PON ports capable of supporting gigabit network services. The commercial deployment of 5G-A networks is being actively advanced, with 10-gigabit optical networks undergoing pilot deployment in communities, factories, and industrial parks. China's intelligent computing power capacity has reached 2185 EFLOPS, a year-on-year increase of 177%. Overall, the current focus is on accelerating the large-scale deployment of 5G-A and 10-gigabit optical networks, expediting the construction of new industrial networks, and establishing an infrastructure system that meets the demands of the intelligent economy and society.

The expansion of connected entities, all-domain coverage, capability upgrades, and functional convergence are steadily enhancing the innovation strength of the communication industry. The new-generation communication network represents a critical innovation in digital information infrastructure for the intelligent era. In terms of innovative applications, connectivity capabilities have achieved significant improvements in certainty and stability, with connection targets expanding from traditional individual users to a diverse range of entities including people, machines, objects, and embodied intelligence. Coverage is continuously broadening, breaking through traditional ground limitations to achieve integrated space-air-ground-sea all-domain connectivity. Network functions are evolving towards greater intelligence, transitioning from simple information transmission to a deep convergence of communication, sensing, computing, intelligence, and security capabilities, better catering to differentiated industry application requirements.

The innovation strength of the communication network industry is steadily improving, with an ever-growing variety of 5G-based intelligent terminals. Products such as AI-enabled phones and computers, intelligent robots, AI glasses, and AI toys have emerged as new hotspots in information consumption. The 6G communication network is opening a new construction cycle, with solid reserves of key technologies and 5G application innovations driving empowerment. The Ministry of Industry and Information Technology has approved the use of the 6GHz band for 6G trial frequencies, accelerating the second phase of 6G technology trials and resulting in a reserve of over 300 key 6G technologies. Operators are leading 6G R&D efforts, with the number of international 6G standard proposals placing them in the top tier globally among operators.

In terms of industry application empowerment, information and communication technology is deeply empowering the real economy. Over 80,000 5G industry virtual private networks have been established, with 5G and gigabit optical network applications integrated into 94 categories of the national economy. More than 26,000 "5G + Industrial Internet" projects are under construction nationwide, and 1,260 5G factories with distinct classifications and characteristics have been established. Overall, the new-generation communication network continues to serve as a digital foundation, with intelligent connected vehicles integrating with 5G-A/6G and satellite internet for converged development. Risks to monitor include the potential for 6G technology R&D and iteration to fall short of expectations, delays in satellite internet constellation deployment, intensifying industry competition, and uncertainties in domestic and international policies.