On October 23, the Ministry of Industry and Information Technology (MIIT) of China officially launched a pilot program for expanding the openness of value-added telecommunications services in four locations: Beijing, Shanghai, Hainan, and Shenzhen.
During a seminar held on the same day to discuss this pilot initiative, the MIIT issued formal notices to the four cities to proceed with the pilot program. Once implemented, foreign companies will be allowed to independently operate Internet Data Centers (IDCs) and online data processing as well as transaction processing services in the pilot regions. This move is intended to enhance foreign participation in China’s computing power and cloud services markets, contributing to the development of China’s digital industry.
Minister Jin Zhuanglong of the MIIT emphasized that the launch of the pilot program in Beijing, Shanghai, Hainan, and Shenzhen signifies a new phase in the opening up of China’s telecommunications sector.
In an interview, Wang Zhiqin, the deputy director of the China Academy of Information and Communications Technology, shared that following the issuance of pilot approvals to these four regions, they will begin the application process for value-added services. Foreign enterprises can apply for trial approvals according to the specified requirements, and upon receiving these approvals, they will be able to commence substantial operations in the designated free trade zones.
As of September 2024, the number of foreign companies permitted to operate telecommunications services in China is expected to reach 2,220. A number of well-known international firms are investing in and running telecom operations in China, playing a vital role in enhancing the vitality of the domestic telecom market and significantly promoting the development of the global digital economy.
