Basic telecommunications businesses (including mobile and fixed telecommunication services) must be controlled by Chinese investors and foreign shareholding in value-added telecommunications businesses shall not exceed 50% (except for e-commerce, domestic multi-party communications, storage and forwarding, and call centers).
On 8 April 2024, the Ministry of Industry and Information Technology (MIIT) issued a Circular launching a Pilot Program to expand the opening-up of the VATS sector. This initiative allows qualified foreign investors to establish wholly foreign-owned enterprises in certain VATS categories within designated pilot zones, namely, Beijing, Shanghai, Hainan, and Shenzhen. However, as this remains a zone-based, pilot initiative rather than a nationwide regulatory change, it is not considered.
"Notice of the Ministry of Industry and Information Technology on the pilot work of expanding the opening-up of value-added telecommunications services
Ministry of Industry and Information Technology Communication Letter [2024] No. 107
In order to implement the spirit of the 20th CPC National Congress and the deployment of the Central Economic Work Conference, promote high-level opening up, actively connect with international high-standard economic and trade rules, continuously optimize the business environment for foreign investment, and serve the construction of a new development pattern, the Ministry of Industry and Information Technology has decided to carry out a pilot project to expand the opening up of value-added telecommunications services. The relevant matters are announced as follows:
1. Pilot projects will be carried out first in Beijing's comprehensive demonstration zone for expanding the opening up of the service industry, the Lingang New Area of ​​the Shanghai Pilot Free Trade Zone and the socialist modernization construction leading area, the Hainan Free Trade Port, and the Shenzhen Demonstration Zone for Socialism with Chinese Characteristics.
[...]
2. In the areas approved for pilot projects, the restrictions on foreign equity ratios in Internet data centers (IDCs), content distribution networks (CDNs), Internet access services (ISPs), online data processing and transaction processing, as well as information publishing platforms and delivery services in information services (excluding Internet news information, online publishing, online audio-visual, and Internet cultural operations), and information protection and processing services will be lifted.
3. Foreign-invested telecommunications enterprises that intend to carry out the aforementioned value-added telecommunications services in the pilot areas shall apply to the Ministry of Industry and Information Technology for approval of the pilot telecommunications business operation in accordance with relevant regulations, and shall abide by relevant laws and regulations and the provisions of the pilot approval in their telecommunications business operations, and accept and cooperate with the supervision and management of telecommunications management agencies and relevant competent departments." (Circular No. 107, Ministry of Industry and Information Technology of the People's Republic of China, 8 April 2024 [google translation])
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"Article 2. This Law shall apply to foreign investment within the territory of the People's Republic of China (hereinafter referred to as the territory of China).
The term "foreign investment" as mentioned in this Law refers to investment activities conducted directly or indirectly in China by foreign natural persons, enterprises or other organizations (hereinafter referred to as foreign investors), including the following situations:
(1) A foreign investor establishes a foreign-invested enterprise in China alone or jointly with other investors;
(2) Foreign investors acquire shares, equities, property shares or other similar rights and interests of enterprises within the territory of China;
(3) Foreign investors alone or jointly with other investors invest in new projects in China;
(4) Investment in other forms prescribed by laws, administrative regulations or the State Council.
The term "foreign-invested enterprises" as mentioned in this Law refers to enterprises wholly or partly invested by foreign investors and registered and established within the territory of China in accordance with Chinese laws.
[...]
Article 4. The state implements a pre-establishment national treatment plus negative list management system for foreign investment.
The pre-establishment national treatment referred to in the preceding paragraph refers to the treatment given to foreign investors and their investments at the stage of investment access no less than that given to domestic investors and their investments; Special access management measures for investment implementation. The state shall give national treatment to foreign investment outside the negative list.
[...]
Chapter IV - Investment Management
Article 28. Foreign investors are not allowed to invest in fields that are prohibited from investing in the negative list for foreign investment access.
Foreign investors should meet the conditions stipulated in the negative list to invest in the areas where investment is restricted by the negative list for foreign investment access.
Fields outside the negative list for foreign investment access shall be managed in accordance with the principle of consistency between domestic and foreign investment.
Article 29. Foreign investors who need to go through investment project approval and filing shall follow the relevant state regulations.
Article 30. Foreign investors who invest in industries and fields that require licensing according to law shall go through relevant licensing procedures according to law.
Relevant competent departments shall review foreign investors' applications for permits in accordance with the same conditions and procedures as those for domestic investment, unless otherwise stipulated by laws and administrative regulations.[...]'" (Foreign Investment Law of the People's Republic of China of 15 March 2019, as amended)
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"I. The Special Administrative Measures  for Foreign Investment Access (Negative List) (hereinafter referred to as the "Negative List") uniformly set out special administrative measures for foreign investment access regarding equity requirements and requirements for senior management. Sectors not covered in the Negative List shall be subject to administration in accordance with the principle of equal treatment for domestic and foreign investments.
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III. Overseas investors are forbidden to engage in investment activities as owners of individual businesses, investors of sole proprietorships, or members of farmers' professional cooperatives. 
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VI. Where the Mainland and Hong Kong Closer Economic Partnership Arrangement and its follow-up agreements, the Mainland and Macao Closer Economic Partnership Arrangement and its follow-up agreements, the Cross-Straits Economic Cooperation Framework Agreement and its follow-up agreements, and any international convention or treaty of which China is a contracting state or to which China has acceded, set out provisions on access treatment for overseas investors that are more preferential, such provisions shall apply. If more preferential opening-up measures are taken for eligible investors in special economic zones such as pilot free trade zones, relevant provisions shall apply. 
[...]
VII. Information transmission, software, and information technology service industry 
16. Telecommunications companies: subject to telecommunications services opened up pursuant to China's WTO commitments; the foreign share ratio for value-added telecom services (except for e-commerce, domestic multi-party communications, storage forwarding, and call centers) shall not exceed 50%; and the controlling stake of basic telecom services shall be held by the Chinese side.
17. Investment in Internet news information service, Internet publishing service, Internet audiovisual program service, cyberculture operation (except for music), and Internet public information dissemination service (except for contents opened up in China's WTO commitments) shall be prohibited. [...]" (Special Administrative Measures  for Foreign Investment Access (Negative List) (2021 Edition) )
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"A． Basic Telecom Services
A1 Class I Basic Telecommunications Services
A11 Fixed communication services
A11-1 Fixed network local communication services
A11-2 Fixed domestic long-distance communication services
A11-3 Fixed network international long-distance communication services
A11-4 International communication facility service business
A12 Cellular mobile communication service
A12-1 Second generation digital cellular mobile communication services
A12-2 Third generation digital cellular mobile communication services
A12-3 LTE/fourth generation digital cellular mobile communication services
A12-4 Fifth generation digital cellular mobile communication 
A13 Class I satellite communication services
A13-1 Mobile Satellite Communication Services
A13-2 Fixed-satellite communication service
A14 Class I data communication services
A14-1 Internet international data transmission service
A14-2 Internet domestic data transmission service
A14-3 Internet local data transmission service
A14-4 International data communication services
A15 IP telephone service
 A15-1 Domestic IP telephone service
A15-2 International IP telephone service[...]" (Catalogue of Telecommunications Business Classification (2015 Edition)" (full text of the 2019 revised edition)[google translation]
Circular No. 107, Ministry of Industry and Information Technology of the People's Republic of China, 8 April 2024
Foreign Investment Law of the People's Republic of China of 15 March 2019, as amended
Special Administrative Measures  for Foreign Investment Access (Negative List) (2021 Edition) 
Catalogue of Telecommunications Business Classification (2015 Edition)" (full text of the 2019 revised edition)
[<a href="https://www.gov.cn/zhengce/zhengceku/202404/content_6944441.htm">Circular</a>],[<a href="http://www.gov.cn/xinwen/2019-03/20/content_5375360.htm">Law</a>],[<a href="https://www.tjftz.gov.cn/tisip/upload/files/2022/4/TheSpecialAdministrativeMeures(NegativeList)forForeignInvestmentAccess(2021Edition).pdf">List</a>],[<a href="https://www.waizi.org.cn/doc/64122.html">Catalogue</a>]