China is expected to invest about 160 billion yuan ($25.71 billion) in fourth-generation mobile network construction this year, according to officials from the Ministry of Industry and Information Technology.

Han Xia, head of the telecommunication management department of MIIT, said on Wednesday that the number of 4G base stations in China is likely to hit 500,000 by year-end. The 4G network will cover 300 cities across the country, with a possible user base of 30 million, Beijing Business Today quoted Han as saying.

Compared with 3G, 4G will drive China's economy with greater force, Han said. He expected the 4G business to drive economic investment of more than 900 billion yuan in China, while 3G projects brought in investment of 750 billion yuan in the first year after 3G licenses were issued in 2009.