en.Wedoany.com Reported - The Ministry of Industry and Information Technology disclosed on June 3 that since the issuance of the first batch of approvals for value-added telecom services pilot operations in February 2025, a total of 166 foreign-invested enterprises nationwide have received approval to conduct value-added telecom services such as internet data centers, internet access services, and information services. This move is seen as a positive step by China to proactively align with high-standard international economic and trade rules and promote the high-level opening of the telecommunications industry.
Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, believes that telecom services are a key area in the opening of the service industry, and expanding foreign investment access in the value-added telecom sector is an important step in promoting the opening of the service industry. He pointed out that China's value-added telecom sector is already at the forefront globally, from various applications to a rich application market environment, forming a highly attractive digital ecosystem, which constitutes an important foundation for attracting foreign investment. The participation of foreign service enterprises can enrich market supply, make services more diversified, and provide consumers with more choices, which is a mutually beneficial and win-win option for both China and foreign parties.
In 2024, the Ministry of Industry and Information Technology issued the "Notice on Carrying Out Pilot Work for Expanding the Opening of Value-Added Telecom Services," proposing to take the lead in pilot projects in the Beijing Comprehensive Demonstration Zone for Expanding Service Sector Opening, the Lingang New Area of the Shanghai Pilot Free Trade Zone and the Leading Zone for Socialist Modernization, the Hainan Free Trade Port, and the Shenzhen Pilot Demonstration Zone of Socialism with Chinese Characteristics, removing restrictions on foreign equity ratios in value-added telecom services such as internet data centers. In February 2025, the first batch of 13 foreign-invested enterprises received approval to conduct related businesses.
The latest data shows that the number of foreign-invested telecom enterprises nationwide has exceeded 3,100, with business scopes covering all 10 value-added telecom services listed in the "Telecom Business Classification Catalog," which will bring more diverse telecom services and products to Chinese consumers and further build an open and active market ecosystem. Nie Pingxiang, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, stated that 166 foreign-invested enterprises have received approval for value-added telecom services pilot operations, covering all 10 types of services, which is an important milestone in the opening of the telecom sector. She analyzed that foreign enterprises excel in cross-border supporting and high-end customized services, while local operators focus on domestic sinking markets and inclusive government-enterprise services. There is broad space for cooperation between the two sides in jointly exploring markets and participating in the formulation of international standards. The entry of foreign capital will strongly promote product diversification, lower service prices, and improve service levels in China's cloud computing market.
The service industry has become the "main battleground" for China's attraction of foreign investment. Data shows that in the first four months of this year, the manufacturing sector actually utilized 78.88 billion yuan of foreign capital, while the service industry actually utilized 204.15 billion yuan of foreign capital. Among them, actual foreign capital utilization in research and design services, computer and office equipment manufacturing, and electronic and communication equipment manufacturing increased by 108.4%, 22.9%, and 20.2%, respectively.
Multiple policy benefits are expected to be implemented successively. The government work report proposes to actively expand independent opening, focus on the service industry to expand market access and open areas, further expand pilot openings in value-added telecom, biotechnology, wholly foreign-owned hospitals, and other fields, orderly expand opening in the digital field, and reduce the negative list for cross-border service trade. The Ministry of Industry and Information Technology stated that it will continue to promote the opening of the telecom sector, actively create a market-oriented, legalized, and internationalized business environment, and support more qualified foreign-invested enterprises to enter the Chinese market. The Ministry of Commerce pointed out that the service industry accounts for more than 70% of the total actual foreign capital utilized nationwide, and the next step will be to focus on the service industry to expand market access and create new advantages in attracting foreign investment.
Experts believe that the entry of foreign capital will inject new vitality into the telecom market. The "Artificial Intelligence+" initiative and the rapid development of the digital economy have created new demands for software and hardware infrastructure. The participation of foreign capital can enrich application scenarios, enhance basic support capabilities, and promote the optimization and upgrading of related rules and standards. At the same time, mutually beneficial cooperation between Chinese enterprises and foreign enterprises can quickly respond to changes in market demand, transforming technology and innovation achievements into new opportunities for enterprises and the market.
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