China Eases Foreign Ownership Rules in Telecoms to Attract Investment Amid US Tensions
China combats US carrier restrictions by opening telecoms pilots to foreign outfits – Beijing drops 50% foreign ownership cap to attract new investment
Techradar
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China has lifted the 50% foreign ownership cap on telecom value-added services in select regions, allowing foreign companies to operate independently. This move contrasts with US restrictions on Chinese telecom firms, highlighting a divergence in approaches amid ongoing tensions.
- 01China's pilot scheme allows foreign telecom companies to operate without needing a local joint venture.
- 02The 50% foreign ownership cap has been removed in regions like Beijing, Shanghai, and Shenzhen.
- 03Since February 2025, China has approved licenses for 166 foreign telecom companies.
- 04Experts suggest that the impact on China's crowded telecom market may be limited for foreign entrants.
- 05The US continues to block Chinese telecom operators citing national security risks.
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China has expanded a pilot program that allows foreign telecom companies to operate independently by lifting the 50% foreign ownership cap on value-added services in specific regions, including Beijing, Shanghai, and Shenzhen. This initiative is part of China's strategy to attract foreign investment amidst ongoing tensions with the United States, which has imposed restrictions on Chinese telecom firms due to national security concerns. The Ministry of Industry and Information Technology (MITT) has already granted licenses to 166 foreign companies since February 2025. However, experts caution that the impact on the domestic market may be limited, as it is already saturated with established local players. Meanwhile, the US maintains that China's involvement in critical infrastructure poses an
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The lifting of the foreign ownership cap may lead to increased competition in China's telecom sector, though the crowded market could limit foreign firms' market share.
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