Restrictions on Foreign Investment Access to Telecom Sector Relaxed
Recently, the Ministry of Commerce, in conjunction with relevant departments, formulated and issued the "Comprehensive Pilot Work Plan for Accelerating the Expansion of Opening-up in the Service Sector" (hereinafter referred to as the "Work Plan"). It has put forward multiple pilot tasks in the telecommunications sector, opened more policies, and further relaxed restrictions on foreign investment access.
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Expand the pilot scope
On the basis of 11 provinces and cities including Beijing, Tianjin, Shanghai, Hainan Province, Chongqing, Shenyang, Nanjing, Hangzhou, Wuhan, Guangzhou, and Chengdu, 9 cities including Dalian, Ningbo, Xiamen, Qingdao, Shenzhen, Hefei, Fuzhou, Xi'an, and Suzhou will be included in the pilot scope.
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Support the opening-up development of telecommunications services and related digital industries
(1) Open domestic Internet virtual private network services to foreign investors (foreign shares shall not exceed 50%) and attract overseas telecom operators to provide domestic Internet virtual private network services to local foreign-invested enterprises in relevant provinces and cities by establishing joint ventures.
(2) Cancel the foreign shares restriction on the application store service business (excluding areas prohibited from foreign investment).
(3) The restriction on the proportion of foreign shares in Internet access services (limited to providing Internet access services to users) will be lifted.
This series of policies is driven by institutional innovation and scenario openness, not only breaking down the long-standing barriers to entry in the telecommunications industry but also leveraging the deep coupling between global innovation resources and the Chinese market through cross-border data flow and application testing fields. With the implementation of policies in Beijing, Shanghai and other pilot cities, it is expected to form a virtuous circle of technology introduction - local innovation - international output, providing replicable and promotable open samples for high-quality development of the digital economy.
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