Shanghai strikes agreement with CETC for new IoT company

Shanghai municipal government inked a cooperation deal with China Electronics Technology Group Corp (CETC), a state-owned enterprise specializing in electronic information systems,on May 19, in a move to develop its digital economy.

According to the deal, a company specializing in the Internet of Things (IoT) and electronic information systems is set to be established, with an initial investment of 10 billion yuan ($1.57 billion).

CETC will use their knowledge in the fields of electronics and technology to collaborate with the Shanghai municipal government in building the electronic information service systems.

Seven innovation centers will also be constructed as part of the deal, namely centers specializing in mimic defense, the security of industrial control systems, cognitive computing, a 5G mobile network, urban safety projects, optical transmission and optical sensing.

Ying Yong, mayor of Shanghai said  that the city is working on building a smart city, a smart government, and an ultra-modern IoT, therefore it welcomes the arrival of companies like CETC to help the city realize its goals.

Ying also vowed that Shanghai will create a better environment and provide better services to help its companies grow stronger and to nurture more unicorn enterprises (startup company valued at over $1 billion).

Xiong Qunli, chairman of CETC, said that the company will integrate its scientific resources to enhance innovation in technology and electronic information systems, and work with Shanghai to promote the construction of a new-generation information infrastructure and build a software and information service industrial hub.

Shanghai municipal government and China Electronics Technology Group sign a strategic cooperation deal on May 19. [Photo/chinanews.com]