China launches new telecom pilot for foreign investors

Following the initial announcement in April, the mainland Chinese Ministry of Industry and Information Technology has now formally launched its long-awaited pilot scheme to expand foreign participation in value-added services in the world’s second largest economy (see our previous blog for more details). 

By permitting foreign investors to set up wholly-owned entities within the four pilot regions (Beijing, Shanghai, Hainan, and Shenzhen), the PRC authorities hope to boost investment from sophisticated overseas operators in six designated categories of  telecom services that should, in turn, broaden user experience and increase revenues in a traditionally tightly controlled industry.

The pilot scheme has received enthusiastic market feedback since its announcement in April. Major industry players such as Tesla, Trafigura, HSBC Fintech, Siemens Healthineers, Kyndryl, Equinix, Unity and Global Logistic Properties have launched their pre-applications in Shanghai, and Airbus also indicated its willingness to join the pilot in Beijing, according to news reports. 

Despite wider uncertainty in the global economy, the possible influx of these prominent companies reflects substantial foreign investment interest in China's telecom sector.

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