Economic

China widens access to value-added telecom services for foreign companies

China’s Ministry of Industry and Information Technology (MIIT) has approved 166 foreign-invested enterprises to participate in pilot programmes for value-added telecommunications services since the first approvals were issued in February 2025, according to Xinhua.

The approved companies are authorised to provide services across China, including internet data centre operations, internet access services and information services. The move forms part of broader efforts to expand access to the country’s telecommunications market.

The ministry said the reforms align with international trade and investment rules while building on existing policy frameworks, including China’s commitments under the World Trade Organization and regulations governing free-trade zones. Under the pilot measures, foreign ownership restrictions have been lifted for selected categories of value-added telecommunications services.

More than 3,100 foreign-invested telecommunications enterprises are currently operating in China, and authorities said additional measures are planned to encourage further participation in the sector. Pilot reforms are currently being implemented in Beijing, Shanghai, Hainan and Shenzhen.

Why does it matter?

China’s telecommunications sector has historically maintained restrictions on foreign participation, particularly in value-added services. Expanding pilot programmes and easing ownership limits could increase opportunities for international companies seeking access to one of the world’s largest digital markets.

The reforms also signal China’s broader efforts to attract foreign investment and align aspects of its telecommunications framework with international trade commitments, while testing market-opening measures in selected regions before potential wider implementation.

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UK regulator launches AI-assisted review of gambling advertising

The UK Gambling Commission has announced a new compliance initiative targeting gambling advertising, following an enforcement notice issued by the Committee of Advertising Practice (CAP). The measure aims to prevent gambling advertisements from having a strong appeal to people under 18.

From 11 June, CAP will conduct a monitoring exercise using its AI-powered Active Ad Monitoring System in collaboration with social media platforms. The review will assess whether gambling advertisements comply with rules intended to protect children and other vulnerable audiences.

Under the enforcement notice, businesses found to be in breach of the rules may be required to amend or remove advertisements without delay. Failure to comply could lead to sanctions, including referrals to hosting platforms or the Gambling Commission.

The Gambling Commission said operators must ensure that all advertising, including content published on social media, remains socially responsible and complies with CAP and Broadcast Committee of Advertising Practice (BCAP) requirements.

Why does it matter?

Regulators are increasingly using AI tools to monitor online advertising at scale, particularly in areas where consumer protection concerns are significant. Gambling advertising remains a sensitive issue because of its potential impact on children and other vulnerable groups.

The initiative signals a more proactive approach to enforcement, combining automated monitoring with platform cooperation to identify problematic content more quickly and strengthen compliance with advertising standards.

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Canada launches AI for All national strategy to accelerate adoption and digital sovereignty

Canada has launched AI for All, a new national AI strategy aimed at accelerating AI adoption, strengthening digital sovereignty, and positioning the country as a leading AI economy.

Announced by Prime Minister Mark Carney, the strategy combines proposed legislation, investments, and programmes intended to ensure AI is adopted responsibly and benefits businesses, workers, students, and communities across Canada.

The strategy targets an additional C$200 billion in economic growth, 250,000 new AI-related jobs over the next five years, and an increase in AI adoption from just over 12% today to 60% by 2034. The government also plans to provide up to 90,000 AI-related jobs and work placement opportunities for young Canadians.

The strategy is built around three principles: building trust, creating opportunities, and reinforcing Canadian sovereignty. To build trust, the government plans to modernise digital legislation, strengthen protections for personal information, address harms such as deepfakes and surveillance pricing, introduce an online safety regime, and expand the capabilities of the Canadian AI Safety Institute.

To create opportunities, the government will establish a National AI Literacy Initiative, provide access to trusted AI agents for post-secondary students, help small and medium-sized businesses adopt AI, support worker training, and launch an AI Missions Program with a flagship health mission focused on diagnostics, patient care, and system efficiency.

To reinforce sovereignty, Canada plans to build domestic AI foundations, including compute, cloud, connectivity, data, and talent. Measures include a world-leading public AI supercomputer, investments in sovereign compute and cloud infrastructure, better access to growth capital for Canadian AI companies, strategic public procurement, and expanded support for AI talent.

The government said the strategy is intended to ensure more AI value is created in Canada while strengthening privacy, data protection, public services, productivity, and economic security.

Why does it matter?

Canada’s AI for All strategy links AI adoption directly to economic growth, workforce development, public trust, and technological sovereignty. The strategy reflects a wider shift among governments: AI policy is no longer focused only on research excellence, but also on compute infrastructure, cloud sovereignty, data governance, safety institutions, business adoption, public procurement, and skills. Its success will depend on whether Canada can turn ambitious targets into measurable adoption across businesses, public services, and workers.

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UK Ofcom sets out AI safety and innovation strategy

Ofcom has outlined its approach to enabling safe and secure AI adoption across the UK communications sectors it regulates and within its own work.

The regulator said its approach is technology-neutral and outcomes-based, aligning AI oversight with its wider mission of making communications work for everyone while supporting innovation and growth.

Ofcom’s report uses case studies to show how AI is already shaping regulatory work and the sectors it oversees. Planned and recent initiatives include building a pilot data lake to make spectrum licensing and online safety data more accessible, engaging with innovators to identify regulatory uncertainty, and assessing public trust in AI chatbots.

The regulator is also examining the impact of AI on telecoms customer experience, exploring AI deployment in broadcasting, assessing AI use in cybersecurity for telecommunications networks, and considering how AI could support network management and optimisation.

Alongside innovation support, Ofcom said it is monitoring AI-related risks and emerging harms. Its work includes guidance on technology-led mitigation against deepfakes, research into chatbot-related harms, and action to address risks posed by AI systems to users.

Ofcom said it coordinated with the AI Security Institute and the National Cyber Security Centre to brief stakeholders on the frontier AI cybersecurity implications following Anthropic’s preview of Claude Mythos, which caused concern. It also said it launched a formal investigation into X’s Grok chatbot.

The regulator is also piloting responsible AI use internally, including tools to support policy development, research, consultation processes, tracking of technical standards, and operational efficiency. Ofcom said it will take a safety-first approach and roll out internal AI tools only once it is confident they are safe and secure.

Why does it matter?

Ofcom’s approach shows how AI governance is becoming operational inside sector regulators, not only debated at the government level. The strategy links innovation support with risk monitoring across online safety, telecoms, broadcasting, cybersecurity, spectrum management, and consumer protection. It also shows regulators experimenting with AI in their own workflows while trying to maintain safety, accountability, and public trust.

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EU and India deepen digital cooperation through Tech Business Forum

The European Union and India have concluded the first EU-India Tech Business Forum in New Delhi, advancing digital and trade cooperation under the framework of the EU-India Trade and Technology Council (TTC). The forum brought together businesses, policymakers, researchers, think tanks, and civil society to strengthen private-sector collaboration and identify opportunities for joint innovation.

The forum was organised by the EU Delegation to India and Bhutan and India’s Ministry of Electronics and Information Technology, with support from industry organisations including the Federation of European Business in India and the National Association of Software and Service Companies (NASSCOM).

More than 100 European and Indian technology companies participated in discussions covering semiconductors, AI, cybersecurity, data governance and digital public infrastructure.

Participants explored opportunities to strengthen interoperability, advance cooperation on technical standards and improve market access for companies operating in both markets. The forum also aimed to operationalise wider EU-India cooperation, including the recently concluded Free Trade Agreement and the Administrative Arrangement on Advanced Electronic Signatures and Seals signed under the Trade and Technology Council in January 2026.

Speaking at the forum, EU Ambassador to India Hervé Delphin said:

‘In today’s fragmented world, working with trusted partners like India is essential to diversify supply chains and reduce over-reliance on certain sources and geographies.‘

He said Europe brings strengths in advanced technology, innovation, and regulation, while India offers scale, talent, and technological applications.

The forum’s outcomes are expected to shape the next steps in EU-India digital and trade cooperation. The Trade and Technology Council remains the primary framework for EU-India cooperation on strategic technologies, digital governance and connectivity, covering areas such as digital public infrastructure, semiconductors, data governance and emerging technologies.

Why does it matter?

The EU and India are seeking to deepen cooperation on strategic technologies at a time when governments are prioritising supply chain resilience, digital sovereignty and secure technology partnerships. Closer collaboration in areas such as AI, semiconductors and cybersecurity could help both sides reduce dependencies and strengthen innovation ecosystems.

The forum also demonstrates the growing role of technology diplomacy in trade relations, with policymakers and businesses working together to address standards, interoperability and market access challenges that increasingly shape the global digital economy.

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France fines Shein over consumer protection breaches

France’s consumer watchdog has imposed two administrative fines on companies linked to Shein after finding consumer protection and environmental disclosure breaches on the retailer’s French website.

The Directorate General for Competition, Consumer Affairs and Fraud Control said an investigation carried out in 2025 on fr.shein.com found failures linked to the right of withdrawal, environmental product information, and order confirmation requirements.

Infinite Styles Ecommerce Co Limited, the seller of Shein-branded products on the French site, was fined €5.76 million. The investigation found that consumers were unable to cancel purchases under the legally required withdrawal procedures. It also found missing information on product traceability and the presence of plastic microfibres in certain textile products.

The watchdog said consumers must be informed when textiles containing more than 50% synthetic fibres release plastic microfibres into the environment during washing.

A second company, Infinite Styles Services Co Limited, which operates fr.shein.com, was fined €16.73 million for non-compliant order confirmations. The DGCCRF said confirmations sent to consumers were missing mandatory information, including the price of goods, delivery dates or deadlines, seller identity and contact details, legal guarantees, mediation options, and withdrawal forms and rights.

French authorities said the missing information weakened consumer protection by making it harder for customers to exercise rights such as cancelling purchases or seeking refunds.

Why does it matter?

The penalties show how consumer protection enforcement is increasingly targeting cross-border e-commerce platforms over both purchasing rights and environmental transparency. For fast-fashion platforms, compliance is no longer only about prices and delivery terms, but also about product traceability, withdrawal rights, order documentation, and disclosures on environmental impact.

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Unlicensed crypto exchanges to be barred from EU under MiCA rules

Crypto-asset service providers operating under national transitional regimes must obtain MiCA authorisation or stop serving the EU clients when the Markets in Crypto-Assets Regulation transitional period ends on 1 July 2026.

The European Securities and Markets Authority has said the transitional period will expire across the EU on that date. Under MiCA, crypto-asset service providers that were operating legally before 30 December 2024 could continue providing services until 1 July 2026, or until they were granted or refused authorisation, whichever came first.

ESMA has urged firms and national supervisors to ensure an orderly transition, with a focus on timely authorisation, client protection, and market integrity. Providers that do not obtain MiCA authorisation will need to stop unauthorised activities, wind down services, or transfer clients where appropriate.

Applications still under review do not, by themselves, give firms the right to continue operating after the deadline. Firms that continue offering crypto-asset services without authorisation risk enforcement action under national law.

The end of the transition marks a major shift from fragmented national registration regimes towards a single EU-wide licensing framework for crypto-asset service providers. MiCA authorisation allows firms to passport services across the EU, while also subjecting them to common requirements on governance, consumer protection, market integrity, prudential safeguards, and supervision.

Some member states shortened or did not fully apply the transitional regime, meaning certain national markets have already moved more quickly towards MiCA-only authorisation. From 1 July, however, the transitional period ends across the EU.

Why does it matter?

The deadline marks the point at which MiCA becomes the effective gateway to the EU crypto market. Firms that previously operated under national regimes will need full authorisation or lose access to the EU clients. In the short term, that could lead to service disruptions, client migrations, or consolidation among crypto providers. In the longer term, it strengthens the EU’s shift towards a single regulatory framework for digital asset platforms.

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European Central Bank warns banks to strengthen resilience as AI reshapes cyber threats

Europe’s banking sector must strengthen its operational resilience as AI transforms the cyber threat landscape and increases systemic risks, according to the European Central Bank (ECB). Speaking at a financial conference, Executive Board member Frank Elderson warned that technological disruption and geopolitical fragmentation are increasing pressure on financial infrastructure.

The ECB said Europe’s reliance on external providers for technology, energy and financial services creates vulnerabilities that could expose critical functions to operational disruptions. While banks remain financially stable, their ability to maintain critical services during cyberattacks or system failures has become key to long-term competitiveness and stability.

According to the ECB, AI is accelerating cyber risks by lowering barriers to sophisticated attacks, enabling faster identification of vulnerabilities and expanding the range of actors capable of conducting cyber operations. While supervisors have strengthened oversight through measures such as stress testing and the implementation of the Digital Operational Resilience Act (DORA), the ECB warned that cyber and operational risks continue to evolve rapidly.

Authorities are now urging banks to invest more heavily in systems, governance, and third-party risk management to ensure continuity of services under stress. The ECB emphasised that operational resilience should be viewed not only as a technical challenge but as a strategic priority for maintaining trust in financial services and supporting Europe’s wider economic transformation.

Why does it matter?

Financial stability increasingly depends not only on the financial health of banks but also on their ability to maintain critical services during cyber incidents, technology failures and operational disruptions.

As AI enables more sophisticated cyberattacks and financial institutions become more dependent on complex digital infrastructure and third-party providers, regulators are placing greater emphasis on operational resilience as a core component of financial stability, economic competitiveness and public trust.

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US SEC outlines roadmap for market growth, digital assets and investor protection

The US Securities and Exchange Commission (SEC) has released a draft strategic plan outlining its priorities for the coming years, with a focus on investor protection, market efficiency and capital formation.

The agency is seeking public feedback on the proposal, which also highlights the growing importance of digital assets and emerging technologies within the financial system.

Under the plan, the SEC aims to modernise its regulatory framework by supporting innovation while maintaining market integrity. Among its objectives is the development of a clearer and more consistent regulatory approach to digital assets and distributed ledger technologies, with the aim of providing businesses and investors with greater certainty.

The regulator also intends to strengthen engagement with market participants and review existing rules to improve compliance and effectiveness. The draft plan states that enforcement should focus on fraud, market manipulation and violations of existing laws, rather than relying on expansive interpretations of regulatory authority.

Technology modernisation is also a key component of the strategy, including plans to upgrade legacy systems and expand the use of technologies such as AI and blockchain. According to the SEC, these improvements could enhance oversight capabilities, reduce operational costs, and improve efficiency across the agency.

Why does it matter?

The SEC plays a central role in regulating the world’s largest capital market, making its approach to digital assets and emerging technologies influential beyond the United States. Greater regulatory clarity could affect how businesses develop blockchain-based services, how investors engage with digital assets and how other jurisdictions shape their own regulatory frameworks.

The proposal also signals a broader shift towards integrating AI and advanced technologies into financial supervision, reflecting growing efforts by regulators to adapt to increasingly digital and technology-driven markets.

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Australia issues guidance for government use of agentic AI

Australia’s Digital Transformation Agency (DTA) has issued an agentic AI addendum to its AI Technical Standard, providing guidance for government agencies exploring, developing or deploying agentic AI systems. The document provides best-practice guidance for agencies exploring, developing, or using agentic AI and states that existing requirements in the AI technical standard remain applicable.

The addendum says agentic AI systems may autonomously plan tasks, coordinate work, and trigger actions in real-world contexts. The addendum notes that agentic AI could improve the responsiveness, efficiency and consistency of public services, particularly in high-volume administrative environments, while also introducing new risks related to oversight, control and system behaviour.

The guidance defines agentic AI as systems capable of perceiving and interpreting their environment, maintaining an internal state, reasoning about objectives and autonomously executing actions within defined permissions and constraints. Agencies are advised to implement human oversight, operational safeguards, continuous evaluation processes and mechanisms that allow systems to be rolled back when necessary.

The addendum sets out guidance across the AI lifecycle, including governance and safeguards, memory management, workflow design, secure data exchange, technology selection, evaluation, tool integration, monitoring, and decommissioning. It also calls for clear human accountability, human-in-the-loop or human-on-the-loop oversight, auditable decision records, and orchestration layers.

The guidance recommends ongoing monitoring of agent behaviour, tool usage, memory functions, operational costs, latency, authorisations and changes in the operating environment. The addendum also recommends centralised oversight mechanisms, referred to as ‘control towers’, and calls for the secure decommissioning of agentic AI resources, including agents, associated data, memory stores, tools and system logs.

Why does it matter?

Agentic AI represents a shift from AI systems that generate outputs in response to prompts to systems capable of planning, coordinating tasks and taking actions with limited human intervention. While these capabilities could improve efficiency and service delivery, they also create new governance, accountability and security challenges.

Australia’s guidance reflects growing international efforts to establish safeguards for increasingly autonomous AI systems. The emphasis on human oversight, auditability and lifecycle governance highlights concerns that public-sector AI deployments must remain transparent, controllable and accountable as the technology evolves.

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