"In the era of data intelligence, data has become a new and most important means of production, while data intelligence has become a key infrastructure in the cities," said Su Meng, chairman and CEO of Beijing Percent Information Technology.

According to Su, China has seen a growing number of digital cities and e-government projects on the ground.

"The digital cities market is really huge," Su noted. "The government is aware of the importance of data assets and the social benefits brought by the data sharing and exchanges. And now, we are at a very early development stage."

The company mainly provides e-government, digital cities and safety services for governments.

Powered by Percent's AI and big data technologies, governments will be able to access more data related to citizens, cars and other details in the cities. With a comprehensive big data governance and sharing platform, the government will be able to better operate in areas like market supervision, social governance and offering public services.

In fact, Percent has expanded its services globally. The company has built a visual national center data analysis and decision-making system for the Angolan government.

Previously, most of Angola's population information was recorded on paper, which was difficult to access and manage. With the new platform, the Angolan government can accurately and dynamically record entire data of local population in terms of birth, education, marriage, social security, fingerprint, faces and more.

A firm called G7 (not to be confused with G-7, or the Group of Seven, the leading industrial nations) is another example of Chinese companies actively engaging in the construction of smart cities. Unlike most tech firms eyeing the digital government solutions, G7 aims to empower traditional industries to embrace the digital transformation, which will not only help boost the productivity of the companies, but help create a better life for local citizens.

"Technology is having a profound impact on various industries," said Zhai Xuehun, founder and chief executive officer of Beijing-based internet of things company G7. "Based on the IoT, big data and artificial intelligence, G7 has already helped connect 98 percent of logistics factors to the internet in China. It is just a small step. We are also using the internet of things to inter-connect traditional industries, injecting new impetus into those industries."

Powered by its own internet of things technologies and algorithms, G7 is able to access the truck driver's real-time conditions. With AI and artificial means, G7 helps reduce the number of driver deaths to one-sixth of the previously reported number.

The company also offers a whole batch of services to drivers. With the support of the internet of things, drivers can make oil and gas payments online.

Shan Feng from the Chinese Society for Urban Studies said next-generation technologies such as the ultrafast 5G and smart cities will see rapid development, and new applications will pop up gradually.

"However, we are still facing some challenges in the development of smart cities," Shan said. "Some cities only focus on software and hardware investment, while local people seldom engage in the process and lack the sense of gain. More efforts are needed to shift the focus to residents, innovation, integration of different sectors and refined management."