China kept its word in providing opportunities for global providers as it approved British telecom carrier BT to operate in the country on a nationwide level.
BT is a major U.K. telecom carrier and it announced that China has given the firm the necessary licenses to operate nationwide. Analysts view this move as a means of the government to prove that it is ready to welcome international companies into the world's second-largest economy.
Danny Mu, the principal analyst at Forrester, told China Daily, "The Chinese government has kept pushing the telecom industry to accelerate the pace of network performance upgrades and tariff reductions across the country, so a newcomer like BT might introduce differentiated customer experience."
It is expected that BT's entrance into the Chinese market will encourage other investors to bet their money on the growing telecom and information sector in China. Beijing-based telecom expert and Cctime CEO, Xiang Ligang, said the recent reforms were created to give "equal treatment" to overseas companies interested in exploring opportunities with the country's consumers.
The Chinese Ministry of Industry and Information technology released two licenses that will allow the firm to provide its telecom services to Chinese citizens. These licenses are the nationwide internet service provider (ISP) license and the nationwide domestic IP-VPN license.
Economic and financial specialists noted that the latest breakthrough with BT is a "major milestone" in improving China's ties with companies overseas. It also promotes China's reforms in international investments.
During Tuesday's briefing, Minister of Industry and Information Technology, Miao Wei confirmed that the government will continue to roll out new policies that will provide telecom companies access to the Chinese market.
Meanwhile, domestic telecom firms are making progress in innovative programs that seek to promote fintech and R&D development in China. Entrepreneur reported that the Hong Kong Science and Technology Park (HKSTP) signed a Memorandum of Understanding (MoU) with Tencent in this regard.
The MoU will allow Chinese tech giant Tencent to capitalize on its technological expertise in sectors such as blockchain, cloud computing, online payment systems, data security, electronic wallets, Internet of Things, and artificial intelligence (AI).
The latest development is part of Hong Kong's goal as it attempts to become a regional hub that focuses on technology and innovation. Tencent's addition to the project is expected to attract other start-ups and tenured companies interested in fintech and other innovative programs.
Tencent and HKSTP will also be working on a program that aims to support Hong Kong start-ups that have yet to be recognized both domestically and internationally. Participants will be provided with talent development training to further facilitate technology innovation not just in Hong Kong but all throughout China.
