From the “Micius” satellite achieving space-to-ground quantum key distribution to financial institutions using quantum encryption to safeguard transaction security, quantum communication is moving from the laboratory to real-world scenarios, becoming the “guardian” of information security in the digital era. As the first field within quantum information technology to enter the stage of practical exploration, China’s quantum communication industry has formed unique advantages in technological breakthroughs, application deployment, and industrial layout. However, multiple hurdles still need to be overcome on the road to large-scale commercialization.
01 Continuous Breakthroughs in Technology R&D, Multi-Directional Achievements Leading Industry Progress
Quantum communication technologies—such as Quantum Key Distribution (QKD), Quantum Random Number Generators (QRNG), and space-to-ground quantum communication—have all achieved significant breakthroughs, laying a solid technological foundation for industry development. In the field of QKD, in 2024 the Jinan Institute of Quantum Technology achieved 502-km fiber transmission using a TF-QKD system without unified optical frequency reference, with an effective key rate of several bit/s, improving practical feasibility. Shanghai Jiao Tong University, using a novel passively prepared CV-QKD scheme, achieved a 1.09 Gbit/s key rate over 5 km of fiber, offering new pathways for high-speed access network transmission.
QRNG technology is also advancing rapidly: Shanxi University achieved a 580.7 Mbit/s random number generation rate, while USTC set a new record with a 23 Mbit/s MDI-QRNG rate, further expanding application scenarios for quantum random numbers.
(Information source: CAICT)
Space-to-ground quantum communication has become the key direction for breaking long-distance transmission bottlenecks. China’s “Jinan-1” micro-nano QKD satellite and multiple miniaturized ground stations have completed space-to-ground experiments. The satellite’s payload weighs 22.7 kg with a single-orbit key output of 595 kbits. The miniaturized ground station weighs about 100 kg and supports bidirectional laser communication and real-time post-processing key generation. Meanwhile, Germany and Canada are accelerating the development of satellite payloads, forming a global competitive landscape in space-to-ground quantum communication.
In addition, frontier research in quantum information networks is active. USTC achieved entanglement between independent storage nodes within a metropolitan three-node quantum network, with the longest point-to-point distance reaching 12.5 km—marking the world’s first metropolitan multi-node quantum network experiment. However, this technology is still at an exploratory stage and remains far from practical application.
02 Multi-Industry Application Deployment, Standardization Advancing in Parallel
Quantum communication continues to expand its applications across finance, energy, telecommunications, and other industries, while standardization efforts progress simultaneously, providing safeguards for regulated development.
In the financial sector, institutions such as HSBC (UK) and JPMorgan Chase (US) are using QKD to protect the secure transmission of financial trading data, building quantum-secure encrypted lines to enhance financial communication security.
In the energy sector, China Southern Power Grid, together with China Telecom Quantum, is working on quantum-secure communication for power dispatching data and transmission line monitoring, supporting the protection of power system data security.
(Information source: Quantum Information Network Industry Alliance)
In the telecommunications sector, China Telecom Quantum introduced the Huawei Mate60 Pro quantum-secure communication customized terminal, supporting SIM-based key injection and combining national cryptographic algorithms to enable HD VoLTE calling. South Korea’s SKT launched the Galaxy Quantum 5 smartphone with an integrated QRNG chip, using quantum random numbers for device authentication and encrypted data transmission—pushing quantum communication into the consumer market.
In terms of standardization, China has achieved remarkable progress. The China Communications Standards Association (CCSA) has released 13 industry standards for quantum-secure communication, forming an initial technical standard system covering devices, systems, networks, applications, and security. At the same time, research on standards for quantum computing cloud platforms and quantum measurement networks is actively advancing.
(Information source: CAICT)
03 Industry Structure Shows “Strong Get Stronger,” With Challenges and Opportunities Coexisting
The quantum communication industry is increasingly concentrated among leading enterprises, with technological and capital barriers becoming more prominent. Meanwhile, the industry faces multiple challenges on the path to large-scale commercialization, requiring breakthroughs from multiple dimensions.
China has the world’s largest number of quantum communication enterprises—over one-third globally—mainly focused on secure communication products, network construction, and demonstration applications. Leading enterprises dominate both technological R&D and market expansion.
In Q2 2025, bond issuance in the communications sector totaled 17.35 billion RMB across nine bond types, mainly medium-term scientific innovation notes. Issuers include top-tier AAA enterprises such as Huawei Investment & Holding and ZTE Corporation, while small and medium-sized firms were absent. Capital continues to flow into “hard-tech,” strengthening the dual barrier of “technology + capital” and pushing the industry toward a “winner-takes-all” structure.
(Information source: Dagong Global)
The industry still faces many challenges: lack of standardized QKD protocols, the need to evaluate real-world system security, limited key rates and transmission distances, reliance on traditional cryptography for network-scale device authentication, and high deployment and maintenance costs. Additionally, large-scale commercial applications of quantum-secure communication lack mature business models, and offline key injection has yet to fully demonstrate its advantages.
From theoretical verification in laboratories to real-world use in finance and energy, quantum communication has taken a critical step forward. But to truly become the “security foundation” of the digital economy, it must overcome technical, application, and industrial barriers. In the future, as technologies continue to improve and costs decline, scenario-based solutions mature, and quantum-resistant cryptography develops in parallel, quantum communication is expected to take root in more fields—building a “quantum shield” for data security and opening a new chapter in information protection.
