The Chinese State Council has given the Beijing government approval to provide foreign investors limited access to virtual private networks (VPNs), a market the Chinese government has been heavily regulating since 2017 due to cybersecurity concerns, reports Caixin.
The State Council announced on Monday a decision to allow foreign telecoms companies to establish joint ventures, with their ownership capped at 50%, to provide VPN services to foreign businesses operating in Beijing. The State Council also lifted foreign ownership cap on information services for app stores at the Zhongguancun Science Park, known as Beijing’s Silicon Valley.
The access approval is part of a strategy unveiled by China’s capital in August last year to open up the service sector and dedicate zones for its further restructure. Its aim is to achieve freedom of investment and cross-border cash flows in the sector by 2030.