China Telecom has made a 3bn yuan ($434m) investment to set up a new entity to harness the power of quantum technology, reported Reuters.

The newly formed unit, called China Telecom Quantum Information Technology Group, will be based in Anhui province in eastern China.

According to China Telecom’s statement on its official WeChat account, the new entity will prioritise the advancement of quantum technology, accelerate the development of quantum products, and drive the growth of the industry across China.

“[This] is a practical action to thoroughly study and implement the spirit of General Secretary Xi Jinping’s important instructions on the development of quantum technology,” China Telecom was quoted by the news agency as saying.

The investment marks a Chinese telecommunications giant’s most recent effort to tap into quantum technology.

Last December, China Mobile joined forces with Chinese startup Origin Quantum to leverage quantum computing to bypass computational limitations that 5G and 6G technologies face.

Quantum computing is said to outperform conventional supercomputers, enabling rapid problem-solving in various domains, such as drug design, material development, transportation, energy, and finance.

The development also coincides with rising tensions between Washington and Beijing over technology.

The US government is considering new rules to limit the flow of US capital and expertise into Chinese firms engaged in the development of advanced semiconductors, artificial intelligence, and quantum computing.

Last month, China’s cybersecurity regulator barred domestic operators of critical infrastructures from purchasing products from Micron, a US-based semiconductor manufacturer.