Societies today have entered an era driven by science and intensive innovation. The digital economy is flourishing, with the Internet of Things (IoT) as one of its foundations. When it comes to IoT, Wuxi in eastern China deserves special mention.
Wuxi is renowned as an "IoT City." Applications of IoT-based technology can be found everywhere in the metropolis. For instance, citizens commute on self-driving shuttles. Traditional factories have evolved into “dark factories”–fully automated with minimal work done by human hands. Wuxi has over 3,000 IoT companies employing the technology in more than 300 industries including transportation, environmental protection, healthcare and security. Wuxi is the birthplace and incubator of IoT development in China.
Wuxi is also playing a role in integrating global IoT development by hosting the annual World Internet of Things Expo. The expo is a communication and cooperation platform for the industry's new-generation IT innovation, progress and integrated development. Held this year from October 20–23, the expo also highlighted Wuxi’s 14-year journey of getting connected with the world through IoT.
Wuxi: Where China Starts its IoT Development
Under the theme of "Intelligent Connectivity and Integrated Empowerment," the World Internet of Things Exposition 2023 focused on how IoT is empowering the digital transformation of the manufacturing industry and efforts to build a world-class industrial IoT cluster in Wuxi. A total of 54 globally renowned companies took part, including ARM, Microsoft, Tesla, Siemens, Fanuc, and Huawei participated. Marc Tarragó, director of the organizing committee of the IoT Solutions World Congress (IOTSWC) held in Barcelona, Spain, also attended, marking the collaboration of two of the world’s premier IoT events. Over 500 enterprises participated in the expo, with an estimated offline attendance of over 200,000 people.
In 2009, when then Chinese Premier Wen Jiabao inspected Wuxi, he proposed building an Internet of Things center in the city. As a result, Wuxi embarked on the task of building the National Sensor Network Innovation Demonstration Zone, marking the beginning of the development of IoT in China. Since 2010, the World Internet of Things Expo has been held in Wuxi every autumn. Over the past 13 years, the number of participants and visitors has exceeded 1.1 million, with nearly 1,000 significant industrial investments or cooperative projects implemented.
In 2016, when Li Qiang, Premier of the State Council of China, was working in the province of Jiangsu, the Internet of Things Expo was upgraded to the World Internet of Things Expo. Li Qiang believes that Jiangsu, especially Wuxi, has a solid foundation, adequate demand, favorable opportunities and promising prospects for the development of the IoT industry. Accelerating the development of the IoT will inject new momentum into economic transformation and upgrading.
World-class IoT Industrial Clusters: How Wuxi Connected With the World
Over the past decade, Wuxi has undertaken IoT-related projects in more than 830 cities in 78 countries, including for the London Underground and BMW factories in Germany. In 2019, Cambridge-based biopharmaceutical company AstraZeneca became one of the key investors in the China Commercial Innovation Centre, the innovation incubation platform in the Wuxi International Life Science Innovation Park, situated in the Wuxi National Hi-Tech District. "Jiangsu's business environment, industrial support, and talent advantages, including Wuxi, have helped China's first-in-class drugs to benefit patients all over the world," said Wang Lei, AstraZeneca's global executive vice-president.
Wuxi has acquired new insights into the IoT industry after taking the lead in exploring its applications. Currently, Wuxi is seizing the development opportunities brought by the accelerating iteration and integrated empowerment of new-generation information technology. It is concentrating on achieving breakthroughs in key technologies, driving innovation and development of the IoT industry and deepening the application in key areas. By doing so, it aims to become an internationally competitive development base of IoT industry clusters, a preferred place for transformative scientific and technological achievements, and a source of application solutions in order to create a world-class advanced manufacturing cluster.
In 2022, the operating revenue of the core IoT industries in Wuxi reached 93.45 billion yuan ($12.7 billion), driving the scale of related industries to 401.1 billion yuan ($54.9), a year-on-year increase of 16.2%. The value added of the digital economy, represented by IoT, accounted for 11.7% of Wuxi’s gross domestic product (GDP). Wuxi is home to more than 3,000 IoT enterprises, including 82 listed companies, forming a complete industry chain covering chips, sensing, connectivity, platforms, applications, and security. Leading companies in the industry have progressed by leaps and bounds, including Envision Energy, LongShine Technology, Wayzim Technology, and Jiangsu Daway Technology.
"Wuxi will make the industrial chain of smart sensors, the internet of vehicles, and the industrial internet its main focus. We will actively engage in global communication and cooperation in IoT. We aim to build Wuxi as an internationally competitive development base of IoT industry clusters, a preferred place for the transformation of scientific and technological achievements, and a source of application solutions," said Wuxi Deputy Mayor Zhou Wendong.
Pioneering Spirit and Entrepreneurial Spirit: What Makes Wuxi Competitive
Wuxi has also been dubbed "Little Shanghai." The reason isn’t just geographical proximity. More importantly, Wuxi and Shanghai share a lot in terms of business culture. Located at the intersection of the Yangtze River, the Grand Canal and Taihu Lake, Wuxi's history dates back 3,000 years. Wuxi acquired its reputation as an entrepot for rice, clothing and silk many thousands of years ago and its reputation has endured.
Strong roots in industry and commerce have laid the foundation for rapid development. Wuxi continues to thrive, topping China's large and medium-sized cities in per capita GDP in 2020, 2021 and 2022. In recent years, Wuxi has become a center for biomedicine, IoT, integrated circuits and new energy.
Beyond its geographical advantage, what drives the ongoing prosperity of Wuxi? A pioneering and entrepreneurial spirit are the keys to the success of Wuxi's industry and commerce, observers say. A study of Wuxi's character rated the city as "good at seizing opportunities and playing with trends." The city highly values its favorable business environment. It's also a place where small entrepreneurs are respected as much as scientists.
