Summary of Key Points
This news report covers two main aspects: first, the phased progress made in opening up China's telecommunications sector to foreign investment, with hundreds of foreign companies having obtained licenses for value-added telecommunications services that cover a full range of categories; second, the continued expansion of openness in the service industry (including telecommunications, healthcare, education, etc.), along with growing foreign investment in China, particularly in high-tech areas. This openness not only provides consumers with more choices but also encourages domestic companies to improve, thereby promoting a dual circulation of the economy.
1. Achievements in Telecommunications Openness: 166 Foreign Companies Obtain Licenses, Serving All Categories
Since the initial pilot approvals in February 2025, 166 foreign companies have been granted the right to operate value-added telecommunications services. The total number of foreign-owned telecommunications companies in China has exceeded 3,100, allowing them to provide all 10 types of value-added telecommunications services listed in the "Telecommunications Services Classification Catalog" (such as internet data centers, e-commerce, information services, etc.). In simple terms, while foreign companies were previously only able to invest partially or in certain services, they can now own or control nearly all value-added services. This is good news for consumers, as it means they will have access to a wider range of telecommunications products, such as more personalized cloud services and cross-border e-commerce platforms, leading to more competitive markets.
2. Pilot Regions Setting Examples: Shanghai and Beijing Each with Their Own Features
The pilot program is not being implemented nationwide but is being tested in several key areas:
- Shanghai: As part of the initial pilot in October 2024, foreign companies were allowed to own or control IDCs (data centers) and CDN (content delivery networks) in Lingang and Pudong. By the end of 2025, 23 foreign companies had been approved, operating in emerging fields such as fintech and digital health. Some are involved in cross-border financial data processing, while others are developing remote healthcare platforms.
- Beijing: Focusing on resolving issues related to cross-border data flow, Beijing issued the country's first "negative list for data export" and established a "green channel," significantly reducing the time required for data export evaluations. To date, 56 foreign companies have obtained licenses, enabling international tech firms to more easily connect their Chinese data with their headquarters.
These pilots serve as test cases, and if successful, the practices can be rolled out nationwide.
3. Next Steps in Service Industry Openness: Targeting Telecommunications and Healthcare
The entry of foreign investors in the manufacturing sector has been fully liberalized (with no restrictions), and the focus now shifts to the service industry:
- The Ministry of Commerce plans to gradually expand openness in areas such as telecommunications, the internet, education, culture, and healthcare, including further piloting value-added telecommunications services, wholly foreign-owned hospitals, and biotechnology.
- The key is to ensure that both access and operation are facilitated. For example, foreign-owned hospitals will not only be able to register but also enjoy the same medical insurance policies as domestic ones.
- Additionally, the "Encouraging Foreign Investment Industry Catalog" was implemented in February 2026, adding 205 new projects focusing on advanced manufacturing, modern services, and high-tech fields, providing more policy support for foreign investors.
4. Performance of Foreign Investors in China: Growth in New Companies, High-Tech Areas Being Most Popular
The data from January to April this year is impressive:
- Over 20,000 new foreign-owned companies were established, a year-on-year increase of 6.8%, with another 3,000 existing foreign companies making additional investments.
- The actual use of foreign capital in high-tech industries reached 116.33 billion yuan, a 20.3% increase, accounting for 40.4% of the total foreign investment—indicating a strong preference for China's technology sectors, such as semiconductors, artificial intelligence, and digital healthcare.
- The actual use of foreign capital in the service industry was 204.15 billion yuan, more than twice that of the manufacturing sector (78.88 billion yuan), making it the main attraction for foreign investment.
Surveys by foreign chambers of commerce show that many multinational companies plan to increase their investments in China, with companies like Apple and Tesla considering expansion, and some international healthcare firms wishing to establish wholly foreign-owned hospitals.
5. The "Spillover Effect" of Service Industry Openness: Encouraging Domestic Progress and Promoting a Dual Economy
Experts point out that the openness of the service industry has a positive "spillover effect":
- Foreign investment brings advanced technology and management experience, such as energy-saving technologies from foreign IDC companies that can be learned by domestic counterparts.
- Increased competition forces domestic companies to improve service quality; for example, telecommunications firms will place more emphasis on user experience, and healthcare companies will accelerate their digital transformation.
- The combined openness of the manufacturing and service industries not only activates the domestic market (the domestic cycle) but also enhances connectivity with international markets (the international cycle), as foreign e-commerce platforms help Chinese companies sell products overseas.
In summary, opening up is about achieving a win-win situation: consumers have more choices, companies are motivated to innovate, and the economy becomes more dynamic. The core message of this news is that the pilot program in telecommunications demonstrates the feasibility of service industry openness, which will be expanded to other areas, attracting higher-quality foreign investment and ultimately promoting high-quality economic development. For ordinary people, the most immediate benefit is the availability of international brand services, such as smoother cross-border video conferencing and more professional foreign healthcare services.