The country's three state-run telecom operators launched services for the next generation of wireless technology on Friday.
5G commercial services are now available in 50 cities, including Beijing, Shanghai, Guangzhou and Shenzhen, according to Chinese state news agency Xinhua. In Shanghai, nearly 1
"The scale of its network and the cost of its 5G services will have a pivotal impact throughout the supply chain, "Bernstein analyst Chris Lane said in a research note earlier this week.
China has more mobile internet users than any other country, with about 850 million people using their smartphones to surf the internet, According to Xinhua.
Analysts at Jefferies predict that China will have 110 million 5G users – about 7% of the country's population – by 2020. South Korea launched its 5G network in April, and roughly 3% of the country's internet users subscribe to it, according to Jefferies.
Huawei, the world's largest telecommunications equipment maker and leading smartphone brand, is playing a major roll in China's 5G network rollout.
Huawei has been under pressure from a US campaign against its business. Washington has been urging countries to ban Huawei equipment from their 5G networks, alleging that Beijing could use it for spying. Huawei denies any of its products poses a security risk.
Despite the pressure, Huawei has found customers for its 5G products. The company said in an earnings report earlier this month that it had signed 60 commercial 5G contracts with carriers around the world, beating out rivals Ericsson and Nokia.
Several Chinese smartphone makers have already started selling 5G devices in China.
But Huawei is in pole position to dominate the market, "given its tight operator relationships in 5G network deployment, and controlling over key components," according to Nicole Peng, an analyst with research firm Canalys.
Peng said in a research note on Wednesday that local rivals including Oppo, Vivo and Xiaomi will "find it very hard to make any breakthrough."
CNN's Yong Xiong contributed to this story.