China’s top industry regulator launched a pilot program on Oct 23 aimed at expanding access to value-added telecommunication services for foreign enterprises, with United States-based electric vehicle maker Tesla Inc among the first group of companies participating in the trial.
The latest move underscores China’s resolve to further open its key sectors to foreign investors, despite moves by some Western countries to curb Chinese influence in high-tech industries, industry experts said.
The pilot program, launched by the Ministry of Industry and Information Technology, will allow foreign companies to fully own and operate telecom utilities and services such as internet data centers, internet access facilities and online data processing.
Previously, foreign players in the sector were only allowed to own and operate limited services, and they could hold a maximum of 50 percent share in their businesses in China.
Jin Zhuanglong, minister of industry and information technology, said the launch of the pilot program has turned “a new page in opening-up for China’s telecommunications industry, driving the gradual expansion of services to foreign companies”.
“At the same time, it has further lowered barriers for foreign investment,” he added.
The program, which is part of a broader plan unveiled by the ministry in April to lift foreign ownership restrictions in specific telecom services, will be piloted in Beijing, Shanghai, the Hainan Free Trade Port and Shenzhen in Guangdong province.
Zhang Hongtao, deputy director of the Shanghai Commission of Economy and Informatization, told China Daily that apart from Tesla, HSBC Fintech Services (Shanghai), which is HSBC’s wholly foreign-owned financial technology subsidiary in China, and Siemens’ digital health subsidiary are among those participating in the pilot program in Shanghai.
Wang Zhiqin, vice-president of the China Academy of Information and Communications Technology, a government think tank, said that some of the areas where restrictions have been removed are strategically important for countries globally and are in the strong interest of foreign investors.
“China is enabling foreign players to share the dividends offered by the Chinese market. In return, such moves will help the country attract and utilize foreign investment more effectively, and enrich the variety of products and services for local consumers,” Wang said.
Apple pledges more investment
Tim Cook, CEO of Apple Inc, reaffirmed the tech giant’s commitment to increasing investment in China and contributing to the nation’s industrial and supply chains, as he met with China’s top industry regulator on Wednesday.
When meeting with Cook, Minister of Industry and Information Technology Jin Zhuanglong said that in recent years, China has expanded the opening-up of its telecommunications sector in an orderly manner, creating new opportunities for companies from all over the world to invest and operate in the country.
Jin said he expected that Apple will continue to explore the Chinese market, increase investment in innovation, grow together with Chinese companies and share the dividends of high-quality development.
,https://english.shanghai.gov.cn/en-Latest-WhatsNew/20241024/3f55069449074111a55c1144cd35bdb8.html