China Telecom Launches $434M Quantum Technology Group

State-owned telecommunications company China Telecom is investing $434 million to establish the China Telecom Quantum Information Technology Group Co.

China Telecom announced the move in a WeChat post, adding that the new company would focus on developing quantum technology, accelerating quantum product development and promoting the quantum industry.

“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,” the company said in the statement.

The new company will be based in the province of Anhui in eastern China, which is home to several technological development zones.

The move comes after China Mobile, the world’s largest mobile carrier with over 900 million subscribers, announced last December that it had signed a deal with startup Origin Quantum to explore whether quantum computing could help overcome the computational demand associated with 5G and 6G networks.

An Omdia report found that China leads in government funding of quantum technology and ecosystem development, estimating that the Chinese government has committed $15 billion to R&D to date. This compares with $7.2 billion spent by the EU and $3.7 billion by the U.S. government.

This article first appeared in IoT World Today's sister site, Enter Quantum.