Today, October 23, the Ministry of Industry and Information Technology announced the launch of a pilot program to expand foreign access to value-added telecommunications services in four locations: Beijing, Shanghai, Hainan, and Shenzhen.
Starting now, foreign-invested companies in these pilot areas will be allowed to operate independent internet data centers and other value-added telecommunication services.
This initiative will remove equity restrictions for foreign investment in key areas, including internet data centers, content delivery networks, internet access services, and online data processing and transaction services. Foreign enterprises can apply to operate in these telecommunication sectors, and the management of these foreign-invested telecom companies will adhere to the principle of “equal treatment for domestic and foreign investments.”
Value-added telecommunication services encompass the provision of additional telecom and information services utilizing public network infrastructure, such as internet data centers, e-commerce, and various information services.
Earlier this year, in April, the Ministry of Industry and Information Technology released a notice and pilot plan for expanding foreign access to value-added telecommunication services. By the end of September, a total of 2,220 foreign enterprises had received approval to conduct telecommunication business in China.
Experts believe that this initiative will enrich market offerings, stimulate innovation, and promote the integration of computing power and artificial intelligence with various vertical industries. It is seen as a way to foster new forms of the digital economy and align the industry’s regulatory framework with international trade standards, thereby enhancing China’s competitive edge in an increasingly open economy.
