BEIJING -- China has more smart city pilots than any other country, but still has room to improve, according to a report.

Over 1,000 smart city pilots are ready for or under construction worldwide, and China is home to about 500 of them, covering big and small cities, according to a report by international auditing and consulting firm Deloitte.

China is keen to build smart cities, and the industry will enjoy more policy and investment support, according to Ma Jionglin, a senior Deloitte partner.

China started piloting national smart city development in 2012 to encourage use of the latest technology, such as artificial intelligence and Internet of Things, to help the flow of traffic, improve law enforcement and make public buildings more energy efficient. Three groups of cities have been listed as national pilot projects so far.

However, Chinese cities should improve their strategy, design, operations and maintenance in developing smart urban areas, along with technology and infrastructure, to ensure residents' needs can be met efficiently and in a timely manner, the report said.

China aims to nurture 100 new smart cities from 2016 to 2020 to lead the country's urban planning and development.