You Can Apply Now! Shanghai FTZ Now Accepts Applications for the Pilot Program to Ease

Foreign Ownership Limits in Value-Added Telecom Services

On November 26, 2024, the Shanghai Free Trade Zone (FTZ) officially opened its online application channel for the pilot program aimed at easing foreign ownership limits in value-added telecom services. The FTZ also released the Guideline that provides the application conditions, procedures, required materials as well as detailed instructions how to fill in the application form and how to prepare supporting materials.

Background:

This development follows an announcement by the Ministry of Industry and Information Technology of China (MIIT) on 23 October 2024 to launch the pilot program according to Circular on Pilot Programs for Expanding the Opening-up of Value-added Telecom Business to Foreign Investment (the "Circular"), which was issued by the MIIT on 8 April 2024. For more details please refer to our previous article on this Easing of Foreign Ownership Limits in China’s Value-Added Telecom Services: What You Need to Know? | Herbert Smith Freehills | Global law firm. According to the Circular, the local governments of the four pilot areas, including Beijing, Shanghai, Hainan and Shenzhen FTZs, are responsible for the detailed implementation plans and rules.

Eligibility Criteria:

• In-scope enterprises must operate internet data centers (IDCs), content distribution networks (CDNs), internet service providers (ISPs), information publishing platforms, and delivery services (excluding certain services like internet news);
• They must have a registered capital of at least 1 million CNY, or 10 million CNY for national or multi-regional operations; and
• They must be registered and physically based in the FTZ (including Pudong New Area and Lingang Special Area).

How to apply online:

Enterprises are able to log in the application platform at https://ythzxfw.miit.gov.cn, then navigate through “Administrative Service” > “Administrative Permits” > “Telecommunications and Internet Services” > “Telecommunications Business Permit” to submit an application online.

On the same day as opening the online application channel for the pilot program, the Beijing Communications and Internet Association published the Interpretation of Relevant Policies, providing similar guidance for foreign enterprises registered in the Beijing Comprehensive Demonstration Zone to apply for the relevant value-added telecommunication license online. 

We are ready to assist:

We are committed to keeping our clients informed about these developments and are ready to assist with any queries or application processes. We will also continue to engage with government authorities and monitor these evolving opportunities closely.