Ministry of Industry and Information Technology: four pilot projects to liberalize IDC Restrictions on foreign equity ratio of CDN and other businesses
The Ministry of Industry and Information Technology recently issued the Notice on the Pilot Work of Expanding the Opening up of Value added Telecommunication Services, pointing out that the restrictions on the proportion of foreign shares in Internet Data Center (IDC), Content Distribution Network (CDN) and other services will be lifted in four pilot areas. These four pilot areas include the Beijing Comprehensive Demonstration Zone for the Expansion and Opening up of the Service Industry, the new port area of the Shanghai Pilot Free Trade Zone and the leading area of socialist modernization, the Hainan Free Trade Port, and the Shenzhen Advanced Demonstration Zone for Socialism with Chinese Characteristics.
In areas approved for pilot projects, there will be no restrictions on the proportion of foreign capital in these businesses, including Internet Data Centers (IDC), Content Distribution Networks (CDN), Internet Access Services (ISP), online data processing and transaction processing, As well as information release platform and delivery services in information services (excluding Internet news information, online publishing, online audio-visual, Internet cultural business), information protection and processing services. The implementation of this policy aims to actively connect with international high standard economic and trade rules through opening up, stimulate market competition and main body vitality, serve to build a new development pattern, and share the dividends of China's digital economy development with the world.
At the same time, the circular also proposed to expand the scope of pilot areas in due time according to the implementation of the pilot. This shows that the Ministry of Industry and Information Technology has a positive attitude towards further opening up the telecommunications sector and attracting foreign investment, and may further expand the scope of opening in the future.
For foreign-funded enterprises, this means that they will have more opportunities to participate in China's telecommunications business market and share the dividends of China's digital economy development. However, this will also lead to more intense market competition. For domestic enterprises, they need to constantly improve their own strength to meet the challenges from foreign-funded enterprises.
In general, the implementation of this policy of the Ministry of Industry and Information Technology will help promote the further opening and development of China's telecommunications sector, and will also promote the interconnection and common development of the global telecommunications market.
