China is set to allow foreign companies to independently run data centers and offer various telecommunications services in the country, with U.S. electric car maker Tesla and British bank HSBC among the first set of applicants. The Ministry of Industry and Information Technology (MIIT) initiated a pilot program in Beijing, Shanghai, Hainan and Shenzhen, allowing foreign companies to wholly own and operate internet data centers, conduct online data and transaction processing, and offer other telecom services. The pilot scheme enables foreign companies to “engage deeply in the Chinese market for services including cloud computing and computing power”, according to the Xinhua News Agency.
Tesla is among the first batch of foreign firms to apply for the pilot, China Daily reported, citing Zhang Hongtao, an official of the Shanghai Municipal Commission of Economy and Informatization. The first group also includes Singapore-headquartered commodity firm Trafigura, a fintech subsidiary of HSBC, Siemens’ healthcare unit, and U.S. game engine developer Unit, the South China Morning Post reports.
The China Daily adds that the latest move underscores China’s resolve to further open its key sectors to foreign investors, despite moves by some Western countries to curb Chinese influence in high-tech industries. The pilot program will allow foreign companies to fully own and operate telecom utilities and services, whereas previously, foreign players in the sector were only allowed to own and operate limited services, and they could hold a maximum 50% share in their businesses in China. MIIT Minister Jin Zhuanglong said the launch of the pilot program has turned “a new page in opening-up for China’s telecommunications industry, driving the gradual expansion of services to foreign companies. At the same time, it has further lowered barriers for foreign investment”.
Tim Cook, CEO of Apple, also reaffirmed his company’s commitment to increasing investment in China and contributing to the nation’s industrial and supply chains, as he met with Minister Jin in Beijing. Jin said he expected that Apple will continue to explore the Chinese market, increase investment in innovation, grow together with Chinese companies, and share the dividends of high-quality development.
