China’s telecommunications regulator, the Ministry of Industry and Information Technology (MIIT), plans a pilot scheme to allow foreign ownership of critical digital infrastructure.

It would mean foreign investors could establish wholly owned subsidiaries in Beijing, Shanghai, Shenzhen, and the island province of Hainan to offer data center services, content distribution network services, and other telecommunications services.

Historically, such services have either been completely blocked from foreign investment, or had an ownership cap of 50 percent. US companies including Apple, AWS, and Microsoft have all found local data center partners due to the restrictions on foreign ownership.

The pilot regions will “adopt internationally recognized economic and trade practices and optimize the business environment for foreign firms," MIIT said.

“We will share the dividends of China’s digital economic development with the world.”

Provincial governments will still have to sign onto the 'Circular 107' rules, so the scheme has not automatically come into force.

Online news publishing, online audiovisual services and Internet cultural services will remain off-limits to foreign investors seeking full ownership.