Tesla and HSBC are leading the way in a new pilot programme launched by China that allows foreign firms to independently operate data centres and provide telecom services. The programme, initiated by the Ministry of Industry and Information Technology (MIIT) on Wednesday, will take place in key cities such as Beijing, Shanghai, Hainan, and Shenzhen. It offers companies the opportunity to manage Internet data centres, perform online data processing, and provide other telecommunications services, according to state media reports from Xinhua.
The pilot is part of China’s broader strategy to open its economy to foreign capital, enabling deeper engagement with the Chinese market, particularly in areas like cloud computing and data services. Tesla is among the first foreign companies to submit an application for the trial, according to China Daily, along with other firms such as Trafigura, Siemens’ healthcare unit, HSBC’s fintech subsidiary, and Unity, a US-based game engine developer.
The programme removes ownership caps for certain telecom services, including data centres and online data processing, allowing foreign companies to wholly own and operate these businesses. However, some sectors, such as online news publishing and audiovisual services, remain restricted from full foreign ownership.
Regulatory approval from MIIT is still required before the trials can commence, and foreign companies must adhere to China’s stringent rules on data security and regulatory compliance. This initiative aims to foster greater innovation, align China’s market with international economic standards, and stimulate its digital economy. The scheme also plays into China’s larger economic goals, such as achieving a 5% GDP growth target in 2024.
Tesla’s involvement in China’s telecom space comes as the company continues to expand its footprint in the country. However, its ambitions to roll out self-driving vehicle services still face hurdles due to China’s data and mapping regulations. While some self-driving features have received government support for trials, Tesla’s full self-driving system has yet to be approved for use.
Featured image courtesy of Automotive News
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