China’s Ministry of Industry and Information Technology (MIIT) has issued approvals to the first batch of 13 foreign-invested enterprises in Beijing, Shanghai, and the southernmost island province of Hainan and the tech hub of Shenzhen for pilot operations in value-added telecommunications services.
These companies are permitted to engage in value-added telecommunications activities such as internet access and information services in accordance with the approval, according to the MIIT on Friday.
“Most of the 13 foreign-invested enterprises approved for the pilot program are affiliates of well-known multinationals, such as Airbus, Siemens, Deutsche Telekom and HSBC. The pilot businesses include internet access, internet information services, and the Internet of Things (IoT). These developments will offer Chinese consumers a more diverse range of telecommunications products and services, further stimulating market vitality,” said Zhang Chunfei, deputy director of the policy and economic research institute of the China Academy of Information and Communications Technology (CAICT).
Data shows that by the end of February 2025, there are over 2,400 foreign-invested telecommunications companies operating in China, marking a 30 percent year-on-year increase.
“The further opening up of value-added telecom services will enable pilot areas to lead in aligning their rules, regulations, management and standards with international practices. It will also accelerate the development of more mature, replicable, and scalable models, advancing the opening-up process in due course,” Zhang added.
Last October, the MIIT launched a pilot program to expand opening-up in value-added telecom services in four designated areas in Beijing, Shanghai, Hainan and Shenzhen.
It allows foreign investors to operate wholly-owned businesses, such as internet data centers, and engage in online data processing and transaction processing within designated areas. They can also gain greater access to China’s cloud computing service and computing power service markets.
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