China Telecom Invests CNY 3B To Set Up A Quantum Information Group

China Telecom said Tuesday on its official WeChat account that it has invested 3 billion yuan ($434 million) in the China Telecom Quantum Information Technology Group Co.

According to the statement, the new entity, which will be based in the eastern Chinese province of Anhui, will focus on developing quantum technology, speeding up quantum product updates, and promoting the industry nationwide.

The investment is the latest attempt by a Chinese telecommunications behemoth to tap into quantum technology, and it reflects Beijing's desire to gain a competitive advantage in the global race to harness the power of quantum computing.

"This is a practical action to thoroughly study and implement the spirit of General Secretary Xi Jinping's important instructions on the development of quantum technology," China Telecom stated.

For years, governments and businesses around the world have touted the potential of quantum computing – a type of very high-speed calculation that uses subatomic particles at extremely cold temperatures – to aid in the solution of complex statistical problems.

China Telecom's move follows China Mobile, the world's largest telecom carrier with 900 million mobile subscribers, signing a deal with Chinese startup Origin Quantum last December to use quantum computing to overcome computational bottlenecks in 5G and 6G technologies.

Current real-world quantum computing applications are still very basic and limited to a small group of clients.

According to market researcher IDC, global governments and corporations will invest approximately $16.4 billion in quantum development by the end of 2027.