New Measures Unveiled to Further Open China’s Telecommunications Sector
April 21, 2025 – The State Council Information Office held a press conference, where officials from relevant ministries and commissions introduced the Work Plan for Accelerating the Comprehensive Pilot Program to Expand the Opening-Up of the Service Sector (hereinafter referred to as the "Plan").
The Plan focuses on key areas such as opening up service industries, promoting innovative industrial development, institutional improvements, and risk prevention, proposing a total of 155 pilot tasks.
Notably, the opening-up of telecommunications services and related digital industries was prioritized. The Plan proposes expanding foreign access to value-added telecommunications services, further opening up the software and information services sector, and accelerating the industrial application of artificial intelligence. It also encourages innovative exploration in data resource utilization, data trading, and data security, while improving supporting market service systems and fostering the development of related businesses and formats.
Specifically, the Plan introduces several new measures in the telecommunications sector. These include:
Lifting foreign equity caps in app store services (excluding sectors prohibited for foreign investment).
Removing foreign ownership restrictions on internet access services (limited to providing internet connectivity to end-users).
Allowing foreign investment in domestic internet virtual private network (VPN) services (with foreign ownership capped at 50%).
These measures will be implemented in 20 cities, including Beijing, Tianjin, Shanghai, Hainan, Chongqing, Shenyang, Nanjing, Hangzhou, Wuhan, Guangzhou, Chengdu, Dalian, Ningbo, Xiamen, Qingdao, Shenzhen, Hefei, Fuzhou, Xi’an, and Suzhou.
This move marks another significant step in China’s efforts to open up its telecommunications sector, following last year’s initiative by the Ministry of Industry and Information Technology (MIIT) to expand foreign participation in value-added telecommunications services. By the end of February this year, MIIT had granted pilot approvals to 13 foreign-invested enterprises, allowing them to operate value-added telecom businesses such as internet access and information services. According to MIIT officials, the next step will involve supporting more foreign companies in joining the pilot program, exploring new business models, and stimulating market vitality.
Beyond telecommunications, the Plan also outlines specific measures to widen market access in healthcare, finance, commerce, culture, tourism, and transportation.
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