In the context of smart city development, a representative from a construction enterprise group shared insights with the 21st Century Business Herald. He explained that companies assist the government in building big data platforms, which are primarily used by policymakers for decision-making and public administration. However, the initial investment in these platforms is substantial, and enterprises typically do not generate direct profits from them. Instead, they rely on other infrastructure projects to sustain their operations, as the main revenue comes from such ventures.
The concept of "smart cities" has gained traction, especially following the 2010 Shanghai World Expo, which carried the theme “Better City, Better Life.†This reflects China's ongoing urbanization and the challenges that come with it—how to improve quality of life in increasingly crowded cities. Smart cities are seen as a potential solution to urban issues, and the 2016 China Smart City International Expo in Beijing showcased various innovations and ideas from local governments, enterprises, and international institutions.
During the expo, companies demonstrated the potential of big data and VR (virtual reality) technologies, offering glimpses into future applications. However, challenges remain, including data silos, lack of coordination, and fragmented systems. Many companies admitted that while smart city initiatives are promising, there is still significant room for improvement. For instance, one company highlighted that the current profit margins from big data platforms are limited, and they depend heavily on infrastructure projects for financial sustainability.
Li Ying, deputy director of the Shenyang Big Data Administration, pointed out that many companies use generic smart city solutions to approach local governments, but without considering local conditions, these approaches may fail to address specific urban challenges. She emphasized the need for tailored strategies that reflect the unique characteristics of each city.
Smart cities are defined as urban environments that leverage information and communication technologies to sense, analyze, and integrate core operational data, covering areas like public services, environmental protection, safety, and economic activities. The goal is to enable intelligent responses to urban needs.
At the expo, VR technology was a highlight, with visitors experiencing immersive virtual concerts through VR headsets. Companies believe that VR could revolutionize industries such as gaming, movies, real estate, and e-commerce. However, domestic VR technology lags behind global standards, with lower image quality limiting its application.
Lutong Technology showcased how BIM (Building Information Modeling) can enhance construction site management. By analyzing rainfall data, the system can predict water accumulation and help implement targeted flood prevention measures. BIM also allows for 3D visualization of urban plots, aiding developers and government agencies in planning and decision-making.
Other exhibitors, including Huawei and Tencent, displayed innovations such as real-time heat maps showing population density. These tools are expected to boost city management efficiency by enabling better crowd control and safety monitoring.
Despite progress, some companies acknowledge that smart cities require more refinement. One firm aims to integrate essential services like healthcare, pensions, and utility payments into a single mobile app, focusing on community-based medical checkups. While the platform is still under development, it represents a step toward more accessible and integrated urban services.
Li Tie, former director of the China Center for Urban and Small Towns and chairman of the Smart City Alliance, emphasized that smart cities should not be driven solely by political goals. Instead, they should meet the diverse needs of residents through market-driven solutions. He noted that in many cases, private enterprises play a more active role than governments, as they are motivated by market demands and innovation.
To truly realize the potential of smart cities, Li Tie suggested that governments should adopt public-private partnership (PPP) models, leveraging the expertise and resources of the private sector. This approach would ensure sustainable and effective development.
Breaking down information barriers remains a critical challenge. Wang Jun of Guokai Oriental Town Development highlighted that most smart city projects are still in early stages, often focusing on isolated services rather than integrated systems. Zhang Wang of the Central Network Office stressed the importance of institutional innovation and technological advancement to overcome data silos and improve governance.
Efforts are underway to enhance data integration, with cities like Jinhua creating smart city leadership groups to coordinate data sharing across sectors. National efforts have also been made to strengthen inter-departmental cooperation, with the National Development and Reform Commission and the Central Network Office outlining roles for 22 departments in smart city development.
Ultimately, the success of smart cities depends on collaboration between governments, enterprises, and communities. As the industry evolves, the focus must shift from isolated projects to comprehensive, integrated solutions that truly enhance urban living.
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