Market innovation key to building smart cities, say experts

The building of smart cities will increase the demand for infrastructure including the commercial application of 5G and bring value to cities, with experts saying the progress should be led by market innovation rather than by the government.

Li Tie, president of the China Center for Urban Development under the National Development and Reform Commission, said no matter how important and how advanced smart cities will be, the final goal is to achieve profit return in the market.

"Without taking economic cost into consideration, such projects will not be realized in society," he said, while giving an example of Beijing's online payment portal for parking fees.