'Unprecedented opportunity': China's telecom pilot approval to 13 foreign-funded firms praised

In a significant move further opening up the telecommunications sector, China last month granted approval to 13 foreign-invested companies for pilot operations in value-added telecom services in Beijing, Shanghai, Hainan and Shenzhen.

Accordingly, the companies have been permitted to engage in value-added telecom activities such as internet access and information services, the Ministry of Industry and Information Technology (MIIT) said on Feb 28, 2025.

Among the approved companies are affiliates and parent companies of well-known multinationals such as T-Systems P.R. China Ltd. which is affiliated with Deutsche Telekom in China, Siemens Digital Technology (Shenzhen) Co., Ltd, Europe-headquartered aircraft manufacturer Airbus and more.

The move has effectively aligned the domestic industry management system and regulatory model with high-standard international economic and trade rules, said Shi Lina, director of the International Governance Department at the Policy and Economic Research Institute, China Academy of Information and Communications Technology, in an interview with China Media Group.

It promotes the continuous improvement of the telecom industry's regulatory system, she added.

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 added.

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 value-added telecom license, it is possible for us to provide corresponding digital support to airlines. In the field of maintenance engineering, we plan to introduce health monitoring at bases first, and in the field of flight and operations, we may have a flight plan that includes electronic data flight packaged which will then be launched in China," said Zhao Chen, vice president of Airbus China.

Xu Gang, CEO of Airbus China, noted 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. "With this new policy, we can introduce more sophisticated digital solutions for fleet management and operational efficiency" he said. 

According to the Beijing Communication Administration, the approval is set to inject new vitality into economic growth and offer a wider range of telecommunication services options and other differentiated services to users. It also continues China's ramped up efforts to expand its high-standard opening up and follows the unveiling of an action plan to stabilize foreign investment on February 19.  

By the end of February 2025, the number of foreign-invested telecom enterprises had increased by 30 percent year on year to exceed 2,400, latest data showed.

(With input from Xinhua)