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The Ministry of Industry and Information Technology. Photo:VCG

The Ministry of Industry and Information Technology (MIIT) on Friday announced that it has granted pilot approvals for value-added services for 13 foreign-funded telecom operators in Beijing, Shanghai, Hainan, and Shenzhen, Xinhua News Agency reported. This move is part of China's ongoing efforts to expand market access and promote high-level opening-up in the telecommunication sector, according to an industry observer.

The move is a big milestone in China's information and communication industry opening-up, reflecting China's alignment with international high standards and efforts to deepen reform and advance institutional openness, the MIIT said on its official WeChat account on Friday.

The newly registered companies, including Deutsche Telekom (China) Communication Technology Co, and Siemens Digital Technology (Shenzhen) Co, will offer a range of services such as internet access and information services, said the report.

The expansion will bring more diverse and high-quality telecommunication services to Chinese consumers, further invigorate the market, and meet the increasing demand for digital living experience.

This pilot program marks a new phase in China's efforts to open up its value-added telecom services, Ma Jihua, a veteran telecom industry observer, told the Global Times on Friday.

"The approval is not only a fulfillment of China's commitment to open up its telecommunication market to foreign investment, but also a strategic initiative to improve digital connectivity," Hu Qimu, deputy secretary-general of the digital-real economies integration Forum 50, told the Global Times on Friday.

Hu highlighted that the gradual opening-up of the telecom market will ultimately enhance China's global competitiveness. "By attracting foreign investment and learning from our foreign counterparts, China aims to improve its telecom industry's efficiency and innovation capabilities," said Hu, adding that this will not only help Chinese firms expand into overseas markets but also attract more foreign investment in the future.

Information and communication, as the backbone of a digital society, drive globalization, enhance global enterprise connectivity, and boost economic growth and prosperity.  Data is becoming a key driver of economic growth, and China's proactive approach will help it stay ahead in the digital race, Hu said. As China continues to deepen its institutional opening-up, the telecommunication sector is expected to play a pivotal role in driving digital globalization and fostering a more interconnected world economy.

China saw the establishment of 2,400 new foreign-invested enterprises in the telecommunication sector, as of the end of February 2025, marking a 30 percent year-on-year increase, according to the report.

The fact that the number of foreign-funded telecommunication enterprises increased significantly indicates the high level of investment enthusiasm, Ma said, adding that the move further demonstrates China's continuous efforts to optimize its business environment for foreign-invested companies.

Foreign investment is a key aspect of promoting high-standard opening-up, and plays a significant role in fostering new quality productive forces and advancing Chinese modernization.

This initiative aligns with China's broader strategy to attract foreign investment and enhance market vitality, as outlined in an action plan to stabilize foreign investment in 2025 which was approved by a State Council executive meeting, on February 20.

China will support pilot regions in effectively implementing opening-up policies related to such areas as value-added telecommunication, biotechnology and wholly foreign-owned hospitals, providing whole-journey services for foreign-invested projects in these sectors. The country will continue expanding its pilot programs to open up fields such as telecommunication and medical services, per the plan.

In order to deepen reforms, create a market-oriented, law-based, and international business environment, and further open up the telecommunication sector, the MIIT will continue to support foreign-invested companies in participating in China's digital economy and contribute to the country's high-quality development.