Enterprises, rather than governments should be the key players in the construction of smart cities, according to a senior official from the National Development and Reform Commission.

Speaking on the sidelines of the ongoing Annual Meeting of the New Champions - also known as the Summer Davos - in Dalian, Liaoning province, Li Tie, head of the China Center for Urban Development at the NDRC, said that many companies are already pioneers in various fields such as Didi Kuaidi, China's largest mobile-based car-booking company.

The real challenge, Li said, is to transform the fragmented demand into systematic demand.