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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