BEIJING, Feb. 28 (Xinhua) -- In a significant move to open its telecommunication sector further, China has approved 13 foreign-invested companies for pilot operations in value-added telecom services in Beijing, Shanghai, Hainan and Shenzhen.
The companies are permitted to engage in value-added telecom activities such as internet access and information services in accordance with the approval, the Ministry of Industry and Information Technology (MIIT) said on Friday.
Another major step in the opening-up of China's information and communication sector, the approval is an important move for the country to align actively with high-standard international economic and trade rules, the MIIT said.
The related businesses by these firms are expected to provide Chinese consumers with a more diverse range of telecom services and products. This development is anticipated to further stimulate market vitality, enhance service quality and standards, and better meet the growing digital lifestyle needs of the public.
Among the approved companies are affiliates of well-known multinationals such as T-Systems P.R. China Ltd., which is affiliated with Deutsche Telekom in China, and Siemens Digital Technology (Shenzhen) Co., Ltd.
By the end of February 2025, the number of foreign-invested telecom enterprises increased by 30 percent year on year to exceed 2,400, latest data showed.
For firms like Deutsche Telekom, the approval will promote the iterative upgrading of various products within China's data center industry, and help establish a more comprehensive data center service system.
"It brings unprecedented opportunities for us," said Li Wenfang, vice president of T-Systems P.R. China Ltd.
"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," Li said.
Similarly, Airbus China, which operates a large digital platform for the analysis of global aircraft performance data, sees the approval as a crucial step in enhancing its offerings for China's aviation industry.
"With this new policy, we can introduce more sophisticated digital solutions for fleet management and operational efficiency," said Xu Gang, CEO of Airbus China, noting that the approval will simplify the time and resources required for business operations in the country significantly, and accelerate the introduction of digital products and services.
"This will not only lead the digital transformation of the aviation industry to new heights, it will also support the entire sector in achieving more efficient and safer development amid the digital wave," he added.
Airbus China has completed the initial development and local deployment of its first digital products and services for Chinese airlines, and plans to launch them later this year, responding to the Civil Aviation Administration's strategy for smart civil aviation that aims to provide intelligent technical support for airlines.
Friday's approval came not long after the MIIT launched a pilot program in last October to expand opening-up in value-added telecom services in four designated areas in Beijing, Shanghai, Hainan and Shenzhen.
It allows foreign investors to operate wholly-owned businesses in fields such as internet data centers, and engage in online data processing and transaction processing within designated areas. They can also gain greater access to China's cloud computing service and computing power service markets.
Despite simmering global trade tensions and a global surge in protectionism, China is ramping up efforts to expand its high-standard opening-up and reinforce its appeal to foreign investment. On Feb. 19, an action plan to stabilize foreign investment in 2025 was unveiled.
Per the plan, devised by the Ministry of Commerce and the National Development and Reform Commission, China will support pilot regions in effectively implementing opening-up policies related to such areas as value-added telecommunication, biotechnology and wholly foreign-owned hospitals, providing whole-journey services for foreign-invested projects in these sectors.
The country will also continue expanding its pilot programs to open up fields such as telecommunication and medical services in a timely manner.
According to the Beijing Communication Administration, Friday's approval will inject new vitality into economic growth and offer a wider range of telecommunication services options and other differentiated services to users.
"It will also encourage local enterprises to actively innovate and grow through healthy competition and collaboration in the market, enhancing their competitiveness and influence in the international market," the administration said. ■
