China’s State Council Sets Agenda on Networks, Payments, Air Quality
Chinese Premier Li Qiang chaired a State Council executive meeting on August 21, addressing five key policy areas: new-generation communication network construction, clearing overdue enterprise payments, air quality improvement, and two regulatory reforms. The meeting, reported by Xinhua News, reflects Beijing’s ongoing focus on infrastructure modernization and economic governance.
New-Generation Communication Networks Take Center Stage
The meeting’s first agenda item focused on accelerating the construction of new-generation communication networks, a cornerstone of China’s “six networks” infrastructure framework first proposed at the Central Political Bureau meeting in April 2026. The framework encompasses water networks, new-type power grids, computing power networks, new-generation communication networks, urban underground pipeline networks, and logistics networks.
The State Council called for seizing opportunities in new-generation communication network construction, emphasizing application-driven and appropriately forward-looking approaches while coordinating the development of basic, space, international, and converged networks.
According to an analysis by the Economic Information Daily, the new-generation communication network is expected to drive approximately 7 trillion yuan in total output across upstream and downstream industries over the next five years. Research estimates suggest China will achieve large-scale commercial deployment of 6G by 2035, potentially cultivating a trillion-yuan-level 6G industry and application market.
China has already built the world’s largest 5G network, with 5.102 million 5G base stations as of the end of June 2026, according to Xinhua’s interpretation article. More than 80,000 5G industry virtual private networks have been established, and 5G and gigabit optical network applications have been integrated into 94 categories of the national economy.
Zhang Haiyi, Director of the Technology and Standards Research Institute at the China Academy of Information and Communications Technology, described the new-generation communication network as “not a simple expansion of the existing network, but a systematic reconstruction led by technological innovation and demand-driven forces,” covering 5G, 5G-A, 6G networks, 10-gigabit optical networks, satellite internet, and low-altitude intelligent networking.
Clearing Overdue Enterprise Payments
The meeting also deployed further work on clearing overdue enterprise payments, calling for the implementation of an accelerated and intensified action plan. The State Council urged local governments to make good use of special bonds, special relending, and other policy tools to unblock the chain clearing mechanism.
This follows the July Central Political Bureau meeting, which clarified the goal of normalizing the resolution of enterprise payment arrears. Zhang Xiaolan, a researcher at the National Information Center under the National Development and Reform Commission, noted that the latest meeting “further refined and implemented relevant requirements, reflecting policy continuity and governance determination.”
The meeting specifically targeted large enterprises that abuse market dominance to delay payments to small and medium-sized enterprises (SMEs), calling for improved industry payment rules, clearer payment terms by sector, and stricter enforcement against payment delinquency.
Economist Pan Helin, interviewed by the National Business Daily, explained that the key to breaking the chain of arrears lies with enterprises that hold bargaining advantages: “The key to chain clearing is the source of arrears, or enterprises with bargaining advantages should be the first to repay.”
Air Quality, Power Safety, and Market Supervision
The meeting also studied work on continuously improving air quality, calling for the continued “Blue Sky Defense War” with strengthened target guidance, enhanced governance in key regions, and improved fiscal, financial, and pricing support policies.
Additionally, the State Council approved the revised draft of the Regulations on Emergency Response and Investigation of Electric Power Safety Accidents, emphasizing pre-incident prevention, source control, and improved emergency response capabilities. The meeting also approved the draft Regulations on Market Supervision and Administration Offices, aimed at strengthening the grassroots foundation of market supervision through technology empowerment and resource allocation to the front line.
Broader Infrastructure Coordination
Just two days before the State Council meeting, the National Development and Reform Commission held a “six networks” major project coordination meeting, establishing a “2+3+N” coordination mechanism for computing power networks, new-type power grids, and new-generation communication networks, as reported by Securities Daily. This mechanism brings together two power grid companies, three telecom operators, and N computing-related enterprises to coordinate major infrastructure projects.
Looking Ahead
The State Council meeting signals China’s continued commitment to modernizing its digital infrastructure while addressing structural economic challenges. The emphasis on new-generation communication networks aligns with broader efforts to build a digital economy, while the focus on clearing enterprise payments aims to improve the business environment and support SMEs.
Observers will be watching for concrete implementation measures, including how local governments deploy special bonds for payment clearing and how the “2+3+N” coordination mechanism translates into accelerated infrastructure projects. The revised power safety regulations and new market supervision rules will also require detailed implementation guidance in the coming months.