Tesla among first trial companies as China further opens telecom sector

China officially launched on Wednesday the pilot program that aims to further open up value-added telecommunications services, with sources telling China Daily that United States' vehicle maker Tesla Inc is among the first group of foreign firms to take part in the program.

According to the Ministry of Industry and Information Technology, the pilot program will allow foreign companies to fully own and operate telecom services such as internet data centers, internet access services, online data processing, and content distribution networks.

Zhang Hongtao, deputy director of Shanghai Municipal Commission of Economy and Informatization, told China Daily that Tesla is among the first to participate in the pilot program, along with other companies such as Trafigura, HSBC's fintech subsidiary, and Siemens' digital health subsidiary. 

The latest move eliminates foreign ownership restrictions in specific telecom services within the pilot regions, part of a broader plan unveiled in April. The pilot program will be first held in Beijing, Shanghai, Hainan, and Shenzhen, said the ministry.

By the end of September, China had already approved telecom business licenses for 2,220 foreign-invested firms operating in the country.