IN a significant move to further open its telecommunications sector, China has approved pilot operations in value-added telecom services for 13 foreign-invested companies in Shenzhen, Beijing, Shanghai, and Hainan.

The companies are permitted to engage in value-added telecom activities, such as internet access and information services, in accordance with the approval, the Ministry of Industry and Information Technology (MIIT) said last week.

Another major step in the opening-up of China’s information and communications sector, the approval is an important move that will help actively align the country with high-standard international economic and trade rules, the MIIT said.

These firms are expected to provide Chinese consumers with a more diverse range of telecom services and products, which will further stimulate market vitality, enhance service quality and standards, and better meet the growing digital lifestyle needs of the public.

Among the approved companies are affiliates of well-known multinationals like Siemens Digital Technology (Shenzhen) Co. Ltd. and T-Systems P.R. China Ltd., an affiliate of Deutsche Telekom in China.

By the end of February 2025, the number of foreign-invested telecom enterprises had increased by 30% year on year to exceed 2,400.

This latest approval follows closely on the heels of an MIIT pilot program, launched last October, to further open up value-added telecom services in one designated area within each of the four cities.

The program allows foreign investors to operate wholly-owned businesses in several fields, such as internet data centers, online data processing, and transaction processing, within these designated areas.

It also grants them greater access to China’s cloud computing service and computing power service markets.

Despite simmering global trade tensions and a global surge in protectionism, China is ramping up efforts to expand its high-standard opening up and reinforce its foreign investment appeal.

On Feb. 19, an action plan to stabilize foreign investment in 2025 was released.

Under the plan, China will support pilot regions in effectively implementing opening-up policies in sectors such as value-added telecommunications and biotechnology, and for wholly foreign-owned hospitals, providing comprehensive support services for foreign-invested projects in these areas.

The country will also continue to expand pilot programs to open up sectors like telecommunications and medical services in a timely manner.

(Xinhua)