Currently, the country's three major telecommunications carriers－China Mobile, China Unicom and China Telecom－are spending big and plan to invest more this year in 5G-related infrastructure construction.

Last year, total expenditure of the three major operators was 334.8 billion yuan. Of that amount, 5G-related capital expenditure accounted for 180.3 billion yuan. 5G-related expenditure accounted for 53.9 percent of the total and saw a 337.6 percent increase on a yearly basis.

Industry experts said that in addition to the huge government support for the telecommunications industry, social capital, including venture capital and private equity firms, is also playing a big role in investing in related areas.

JG Investment, one of China's emerging private equity firms, is looking to find its sweet spot in the country's rapidly developing emerging telecommunications sector, said Gui Zhaoyu, the company's founding partner.

Founded in 2017, JG Investment has successfully invested in leading companies in high-end manufacturing, technology, consumption and healthcare sectors. Chinese home appliance leader Haier Electronics Group, tech giant Alibaba Group Holding Ltd and online travel website Ctrip are among the companies in which the group has invested.

Gui said he was extremely bullish on businesses focused on the 5G small cell, which is basically a portable miniature base station with lower costs and a more convenient way of deployment compared with a macro base station.

"It is a promising business as consumers will have higher demand for data services with the onset of 5G," he said. "If their smartphones are closer to many small cells, they will enjoy faster data speeds and more reliable services."

Currently in China, most of the 4G base stations are equipped with traditional big cells, which often face traffic congestion due to the large number of users, said Diao Zhaokun from China Mobile Group Design Institute Co Ltd, a research institute of China Mobile.

"Yet a dense network of small cells is able to offer higher frequency bandwidths and increased data capacity. This 'new infrastructure' can be used in densely-populated areas where a lot of people are using data at a certain point in time," he said.

From the business perspective, Gui said that the 5G small cell will generate high returns with fewer costs for rooftop systems and operation fees. He added that JG Investment has already invested in a firm focusing on these technologies.