China has set a national target for its core Internet of Things (IoT) industry to exceed 3.5 trillion yuan (US$505.8 billion) by 2028, under a new action plan issued by the Ministry of Industry and Information Technology and several other government departments. The plan outlines measures to expand connected devices, strengthen technical standards and accelerate innovation in sensing, networking and data technologies. Details of the initiative were published by the Chinese government on 31 March 2026.
The strategy reflects China’s broader effort to integrate digital technologies across industry and public services. IoT systems enable intelligent connections between people, machines and physical objects through sensing technologies and communications networks, helping bridge the digital and physical environments that underpin modern digital economies.
Targets for industry scale and device connectivity
According to the action plan, China aims to significantly expand the scale and capability of its IoT ecosystem by 2028. Alongside the economic target of more than 3.5 trillion yuan in core industry value, authorities plan to increase the number of IoT terminal connections nationwide to 10 billion.
The plan also calls for the development or revision of more than 50 advanced and practical industry standards. Policymakers view standardisation as a key mechanism for enabling interoperability between devices, platforms and applications across sectors such as manufacturing, logistics and urban infrastructure.
Five measures to strengthen the IoT ecosystem
The action plan identifies five priority areas intended to support the expansion of the IoT industry and its applications.
- Innovation in IoT devices: Encouraging the development and upgrading of intelligent sensors and connected terminals.
- Improved platform services: Enhancing the performance and capabilities of IoT platforms that manage data and device networks.
- Expansion of application scenarios: Promoting wider adoption of IoT technologies across industries and public-sector services.
- Stronger network infrastructure: Building more resilient communications networks to support large-scale device connectivity.
- Industry ecosystem development: Supporting collaboration among enterprises, research institutions and technology providers.
Focus on technological breakthroughs
The plan emphasises research and development in several core technologies, including sensing systems, networking and communications, data processing and security. Progress in these areas is expected to improve the intelligence and efficiency of IoT terminals and service platforms.
Officials expect continued emergence of new IoT products, services and business models as innovation capabilities improve across the sector. The approach aligns with broader regional trends in digital transformation and technology cooperation, including initiatives such as Singapore and China’s technology-driven economic collaboration and partnerships that link emerging technologies with public-sector priorities.
Across Asia, governments are increasingly integrating connected technologies, artificial intelligence and data platforms into national development strategies. For example, regional collaboration highlighted in Vietnam’s global AI partnerships driving digital transformation reflects a wider policy focus on digital infrastructure, innovation ecosystems and cross-border technology cooperation.
