166 foreign firms approved to operate telecom services in China

China has moved to open its value-added telecommunications sector to foreign investment, with 166 overseas-funded enterprises receiving approval to operate in key pilot zones, the Ministry of Industry and Information Technology (MIIT) announced on Wednesday.

The approvals, granted since the first batch of pilot licenses for value-added telecom services was issued in February last year, allow these companies to provide services such as internet data centers (IDCs), internet access services and information services in line with Chinese laws and regulations.

The move is part of a broader push by the MIIT to promote high-quality development of the telecom industry through high-level opening-up, building on China's World Trade Organization commitments and previous pilot programs in free trade zones and service expansion areas.

A key feature of the reform is the removal of foreign ownership caps for certain value-added telecom services — including IDC services — in four pilot regions: Beijing, Shanghai, Hainan and Shenzhen.

The total number of foreign-invested telecom enterprises operating across China is currently in excess of 3,100.

According to the ministry, the growing presence of international players is expected to bring more diverse telecom services and products to Chinese consumers, fostering an open, dynamic and competitive market ecosystem.

The MIIT has stated that it will continue to steadily expand telecom service openness in a well-planned manner, while ensuring market order and security.