BEIJING -- Beijing is building a national-level cybersecurity industrial park to boost the industry and tap into the potential of domestic tech companies.

Over 10 companies specialized in internet security have signed a contract to move into the park, which has two branches respectively in Haidian district and Tongzhou district, according to the Beijing Municipal Bureau of Economy and Information Technology.

Construction on the park started at the end of 2017. By 2020, the industrial output is expected to reach 100 billion yuan (about $14.5 billion).

"We are actively advancing the project. Leading firms in cybersecurity from home and abroad will establish their headquarters in the park," said Jiang Guangzhi, an official with the bureau.

As smart cities' initiatives using information technology are rolling out in many cities in China, the demand for internet security infrastructure is high.

"The fact that many agencies and organizations are exploring digitization and information technology without sufficient security creates a lot of risks," said Qi Xiangdong, a member of the Beijing municipal committee of the Chinese People's Political Consultative Conference. The committee is currently holding its annual session.

"Beijing is the center for political activity, culture, international exchange and technological innovation, but it is also a big target for cyber attacks," said Qi.

The 360 Enterprise Security Group said it found security loopholes in over half of the one million websites in Beijing. On a daily basis, over 9.55 million malware are detected and blocked from PC users.

The global average of security spending in IT is about 3.7 percent of the total IT spending, but the Chinese average is only 1.1 percent, Qi said.

Insufficient investment in cybersecurity may lead to serious consequences, said Tong Liqiang, also a member of the committee and former director of the Beijing cyber information office.

"A full-fledged internet security shield is still not yet in place, but it is needed to service the development of the IT industry, tackle the security challenges and meet the public demand," said Tong.