Tesla and HSBC Among First Foreign Firms in China to Apply for Telecoms Service Trials
China opens doors to foreign firms for telecoms service trials. Tesla and HSBC among the first applicants for the pilot program. Ministry of Industry and Information Technology leads the initiative.
Among the pioneers in this initiative are US electric car manufacturer Tesla and British banking giant HSBC, who have submitted applications to participate in the program.
The Ministry of Industry and Information Technology (MIIT) launched a pilot programme in key cities like Beijing, Shanghai, Hainan, and Shenzhen, granting foreign companies the opportunity to fully own and manage internet data centres, conduct online data processing, transaction processing, and offer a range of telecom services, as reported by state news agency Xinhua.
This pilot scheme marks a significant milestone, allowing foreign companies to deeply immerse themselves in the Chinese market, particularly in areas such as cloud computing and computing power, as highlighted in the Xinhua report.
According to Zhang Hongtao, an official from the Shanghai Municipal Commission of Economy and Informatization, Tesla is among the initial group of foreign firms to have applied for this pioneering program, as reported by China Daily.
The initial group of applicants also includes Trafigura, a Singapore-based commodity firm, a fintech subsidiary of HSBC, Siemens’ healthcare division, and US game engine developer Unity. However, regulatory approval from the MIIT is necessary before these foreign firms can proceed with the trials, in line with the ministry’s plan unveiled in April.
MIIT expressed that this move to expand the opening-up policy aligns with international economic and trade standards, aiming to enhance market offerings, drive innovation, and share the benefits of China’s digital economic growth globally.
In April, China’s MIIT revealed its plan to eliminate foreign ownership restrictions for businesses involved in various telecom services, such as data centres, content distribution, internet access, and online data processing. Nevertheless, certain sectors like online news publishing, audiovisual services, and internet cultural services remain restricted to full foreign ownership.
As China continues to welcome foreign investment to bolster its economic rebound and achieve growth targets, Tesla is actively pursuing opportunities in the Chinese market. However, the rollout of Tesla's self-driving services in China faces uncertainties due to mapping and data security concerns.
While Tesla has received support from the Chinese government for testing some self-driving features, the approval for its full self-driving system is pending. Regulators are carefully evaluating issues related to self-driving technologies, data security, and compliance before granting the green light for Tesla’s advanced autonomous driving services in China.
China opens doors to foreign firms for telecoms service trials
Tesla and HSBC among the first applicants for the pilot program
Ministry of Industry and Information Technology leads the initiative
Source: SCMP