China approves pilot operations in value-added telecom services run by 13 foreign firms

China's Ministry of Industry and Information Technology (MIIT) has issued approvals to the first batch of 13 foreign-invested enterprises in Beijing, Shanghai, Hainan and Shenzhen for pilot operations in value-added telecommunications services, marking another major step in the opening-up of China's information and communication sector.

It was learnt from the ministry on Friday that the companies are permitted to engage in value-added telecom activities such as internet access and information services in accordance with the approval.

The related businesses by these firms, which have been approved for pilot operations and are predominantly affiliates of well-known multinationals, are expected to provide Chinese consumers with a more diverse range of telecom services and products. This development is anticipated to further stimulate market vitality, enhance service quality and standards, and better meet the growing digital lifestyle needs of the public.

By the end of February 2025, the number of foreign-invested telecom enterprises increased by 30 percent year on year to exceed 2,400, latest data showed.

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.