A visitor experiences a gadget at the Internet of Things expo.

The sales revenue of the company was 80 million yuan last year. Ruan thinks the figure will reach 150 million yuan this year and increase to 240 million yuan next year.

Ruan also admitted that State-owned enterprises should focus more on IOT's uses in the most critical markets and push breakthrough research of key technologies, since the government recognizes IOT's importance.

Ruan added that the Wuxi government has created a good environment for IOT enterprises and actively serves citizens with new applications.

"The new applications can also promote technology innovation," Ruan said.

The Wuxi government requires districts and counties to spread IOT uses in infrastructure construction, social governance and public affairs.

It is easier for IOT enterprises to get bank loans in Wuxi. And the city government invited the main State-owned telecommunication companies and key universities to build their IOT applications and research branches in its 7.5-square-kilometer IOT model industrial zone.

The government has an ambitious plan for the IOT industry. By 2020, overall government investment in the industry will hit 10 billion yuan, and there will be 1,500 IOT enterprises in Wuxi with 150,000 employees.

The whole industry's output will hit 150 billion yuan in 2020, accounting for more than 10 percent of the city's projected economy then.