• Farmers in rural areas stand to benefit from broadband access as e-commerce will allow them to better sell their crops.

Farmers in rural areas stand to benefit from broadband access as e-commerce will allow them to better sell their crops. (Photo : Reuters)

The State Council of the People's Republic of China announced on Wednesday its intention to improve broadband services in rural and remote areas.

Stronger telecommunication services will help attract investors and allow for coordinated development in rural areas, said the State Council in a statement released after an executive meeting led by Premier Li Keqiang.

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The meeting ruled that there should be an increase in input from the central budget, support from policies, and capital for telecom construction and maintenance.

The meeting also decided to better stimulate public-private partnerships and have stricter supervision of subsidies.

According to the plan, 50,000 more villages will gain broadband access and 30 million rural households will have upgraded services by 2020.

The total investment is estimated at around 140 billion yuan.

The State Council meeting also mentioned the value of e-commerce, with the idea that faster expansion of e-commerce in rural areas will feed consumption, support the economy and improve the lives of farmers.

Private investment through e-commerce will ideally allow for the exploration of channels for agricultural products produced in rural areas to enter the urban market. Poor rural areas will be given priority by the program as pilot e-commerce villages.

There will also be improved e-commerce training and infrastructure.

The meeting also expressed the need for the faster development of express couriers in order to lower costs and create jobs.

During the meeting, the State Council suggested ways to support the implementation of the program such as mergers of delivery companies, more seamless license acquisition and customs clearance, better cooperation between delivery and e-commerce, faster delivery services, and more mortgages for the industry.