The Ministry of Industry and Information Technology (MIIT) has approved pilot programs for value-added services (VAS) for 13 foreign-funded firms in Beijing, Shanghai, Hainan, and Shenzhen. This forms part of China’s ongoing efforts to expand market access and promote high-level entry in the telecommunications sector.
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Among the 13 approved companies are T-Systems P.R. China Ltd., an affiliate of Deutsche Telekom; Siemens Digital Technology (Shenzhen); and Airbus China. Past reports also indicated that Tesla and HSBC Fintech Services (Shanghai) were planning to apply for the pilot. The approvals include subsidiaries of major multinationals, reinforcing the initiative's global appeal.
Li Wenfang, Vice President of T-Systems P.R. China Ltd., said, “We can better integrate global resources, enhance technological innovation and service capabilities, and provide higher-quality solutions and services for multinational corporations, as well as industries operating in China such as the manufacturing and automotive industries; thereby leading more German companies to enter the Chinese market.”
This expansion aims to offer more diverse and high-quality telecommunication services to Chinese consumers, invigorate the market, and meet the growing demand for digital experiences. By attracting foreign investment and learning from international counterparts, China hopes to improve efficiency and innovation within its telecom industry. Information and communication are crucial for a digital society as it drives globalization, enhances global enterprise connectivity, and boosts economic growth.
"With this new policy, we can introduce more sophisticated digital solutions for fleet management and operational efficiency," added Xu Gang, CEO of Airbus China.
Data is increasingly becoming a key driver of economic growth, and China's proactive approach will help it stay ahead in the digital race. The establishment of 2,400 new foreign-invested enterprises in the telecommunication sector by the end of February, 2025, indicates a 30% year-over-year (YoY) increase, reflecting high investment enthusiasm. This demonstrates China's continuous efforts to optimize its business environment for foreign-invested companies.
China's broader strategy to attract foreign investment and enhance market vitality includes supporting pilot regions in implementing entry policies related to areas like value-added telecommunication, biotechnology, and wholly foreign-owned hospitals. In order to deepen reforms, create a market-oriented, law-based, and international business environment, and further expand the telecommunication sector, the MIIT will continue to support foreign-backed companies in participating in China's digital economy and contributing to the country's high-quality development.
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