Communication equipment manufacturing encompasses two main categories: communication system equipment manufacturing and communication terminal equipment manufacturing. Communication system equipment manufacturing involves the production of equipment necessary for the construction of fixed or mobile communication access, transmission, switching equipment and other communication systems. This sector includes the provision of solutions for operators and enterprise customers, such as transmission networks, access networks, and transport networks. Communication terminal equipment includes various types of devices used for communication purposes, such as audio communication terminals, graphic image communication terminals, video communication terminals, data communication terminals, and multimedia communication terminals.

In 2021, the operating revenue of China’s communication equipment manufacturing industry above a designated size reached approximately 4.177 trillion yuan ($596.9 billion), marking a year-on-year increase of 5.1 percent. Communication terminal equipment manufacturing remains the primary focus of the communication equipment manufacturing industry, with its proportion showing relative stablility over the years. The revenue of communication terminal equipment manufacturing has consistently accounted for more than 60 percent of the total communication equipment manufacturing industry, reaching approximately 64 percent in 2020, while communication system equipment manufacturing comprises the remaining 36 percent.

According to the 14th Five-Year Plan for the Development of the Information and Communication Industry, the construction of a new type of digital infrastructure that is high-speed, ubiquitous, integrated, intelligent, green, safe, and reliable has emerged as a crucial task for China’s communication equipment manufacturing industry during the 14th Five-Year Plan (2021-25) period.