Navigating China's Telecom Landscape: Regulatory Challenges and Solutions

The Opportunity and Challenge of China's Telecommunications Market

China represents the world's largest consumer market with over 1.4 billion people and approximately 1.6 billion mobile subscribers. For global businesses, this enormous market offers unparalleled growth potential, provided they can successfully navigate the complex regulatory environment.

While providing customer service and selling to China-based customers via voice might seem daunting, understanding the regulatory framework and partnering with experienced providers can transform these challenges into opportunities. This guide will help you understand the landscape and best practices for successfully deploying a voice channel in China.

Understanding China's Market Landscape

Market Size and Significance

China's telecom market is not just large—it's transformative. With mobile penetration exceeding 100% (meaning many subscribers own multiple devices), China has become the world's largest digital ecosystem. Chinese consumers conduct billions of digital transactions daily, with voice communications remaining central to both customer service and sales operations.

The Unique Technological Ecosystem

China's internet and telecommunications infrastructure operates within a distinct regulatory framework, including the Golden Shield Project (often referred to internationally as the "Great Firewall"). This system monitors and manages digital communications within China, creating a separate technological ecosystem with its own unique requirements.

Key Players in China's Telecom Industry

Three state-owned carriers dominate China's telecommunications landscape:

1. China Mobile - The largest carrier, with over 900 million subscribers
2. China Telecom - The second-largest provider, particularly strong in fixed-line services
3. China Unicom - The third major player, with significant mobile and fixed-line operations

Key Regulatory Framework and Compliance Requirements

China's Regulatory Environment for Voice Services

China maintains a strict regulatory environment for telecommunications, with a vigilant focus on preventing fraud and protecting consumers. This regulatory climate directly impacts how businesses can obtain and use phone numbers for customer service and sales operations.

The Ministry of Industry and Information Technology (MIIT) serves as the primary regulator for telecommunications in China. MIIT oversees the allocation of numbers, licensing, and compliance for voice services. Every phone number used for business purposes must be properly registered with MIIT-approved documentation.

Getting Phone Numbers: Documentation Requirements

When obtaining phone numbers for contact center operations in China, businesses must provide specific documentation to telecommunications providers. These requirements ensure legitimate business use and help prevent fraudulent activities.

Required Documentation for Number Purchase may include:

• Business license: Current registration showing a legal business entity in China
• Use case description: Detailed explanation of how numbers will be used (customer service, sales, etc.)
• Local contact verification: Designated representative with physical presence in China
• Address verification: Proof of a legitimate business address through utility bills or lease agreements
• Call handling protocols: Description of how calls will be answered and managed

Anti-Fraud Measures

Combating telecommunications fraud has become a national priority in China, with comprehensive measures implemented across the ecosystem to protect consumers and maintain trust in digital communications.

Reporting and Detection Systems:

• Dedicated hotlines (national anti-fraud center at 96110)
• Mobile applications for fraud reporting
• Online portals for suspicious activity reports
• Public awareness campaigns educating citizens about fraud tactics

Operator Responsibilities:

• Real-time monitoring systems to detect unusual patterns
• Technical assistance in fraud investigations
• Prompt compliance with official directives regarding suspicious numbers
• Implementation of immediate suspension measures when fraud is suspected

The Anti-Telecom and Online Fraud Law, implemented in 2022, strengthened this framework by establishing more precise definitions and specifying penalties for fraudsters and non-compliant service providers.

Real-world events can also create a surge in fraud reporting and downstream business call blocking. For example, each year, the Chinese government holds a Consumer Rights Festival to raise awareness of bad business practices and actors that impact Chinese citizens. 

Telemarketing scams are often highlighted. The government encourages citizens to report potential scam calls, and for those reported, telecom carriers take a ‘block first, validate later’ approach to their phone numbers. In 2025, the MIIT said it would ‘direct telecom firms to shut down illegal phone lines and order internet platforms to remove listing for illicit automated calling software.’  

Additional Regulatory Considerations

Several other regulations may impact voice operations, though these are typically handled by experienced telecommunications providers:

• Content restrictions: Limitations on what can be discussed during customer calls
• Data localization: Requirements for how call data and recordings are stored
• Cross-border communications: Special considerations for international call routing
• Quality standards: Minimum service level requirements for business communications

Understanding these regulatory requirements is essential for maintaining compliant voice operations in China, but working with an experienced provider can help navigate the complexity while ensuring full compliance.

Best Practices for Voice Communications in China

Successfully operating voice communications in China requires more than just technical connectivity—it demands understanding local business practices, regulatory requirements, and customer expectations. These guidelines focus on the operational considerations that directly impact your ability to connect effectively with customers across China's diverse market.

Establishing Compliant Voice Operations

Successfully deploying voice communications in China requires understanding key operational requirements that affect how your business can connect with Chinese customers. These practices ensure reliable service while maintaining compliance with local regulations.

Essential Business Requirements:

When establishing voice services in China, your voice provider will need specific business documentation to register numbers properly. For certain types of numbers, this may include business licenses, local contact information, and clear descriptions of how numbers will be used in customer communications. Having these materials prepared in advance can significantly speed deployment timelines.

Known Caller Use Case (KYC)

For outbound calls, the person you are calling should be a customer of yours and familiar with your company. If the use case of the number changes, inform the carrier to ensure the KYC and script match the actual conversation. 

If a call isn’t answered, wait before calling back versus dialing immediately.

Operational Compliance for Customer Communications:

China's anti-fraud regulations directly impact how customer service and sales calls must be conducted. Agents should always clearly identify themselves and their company at the beginning of calls. Maintaining consistent company identification helps build trust with Chinese customers, who are increasingly cautious about unknown callers due to widespread awareness campaigns about fraud.

Optimizing Voice Service Quality

Answer Rate Optimization:

Local phone numbers significantly outperform international numbers for reaching Chinese customers. Research shows local numbers can achieve substantially higher answer rates because customers are more likely to respond to familiar, local-appearing calls. This is particularly important for sales outreach and customer service callbacks.

Call Routing and Reliability:

Voice services in China benefit from direct connections to in-country infrastructure that avoids the latency and quality issues associated with international routing. Ensure your voice provider has direct carrier relationships within China rather than relying on other call routing solutions that can introduce delays and quality degradation.

Customer Experience Considerations:

Chinese business culture values directness and efficiency in communications. Customer service interactions should be clear and purposeful, with agents prepared to state their reason for calling within the first few seconds. For inbound services, professional answering protocols and minimal wait times are essential for maintaining customer satisfaction.

Managing Voice Communications at Scale

Multi-Location Operations:

For businesses operating across multiple regions in China, consistent numbering strategies help maintain brand recognition and consistency. Using local numbers in each service area while maintaining standardized call handling procedures creates the optimal balance of local presence and operational efficiency.

Service Quality Monitoring:

Voice quality can vary significantly across China's different regions and network providers. Working with providers who offer real-time quality monitoring and automated routing optimization helps ensure consistent customer experiences regardless of location or network conditions.

Scalability and Growth:

China's regulatory environment requires proper documentation for each new number deployment. Planning for growth means ensuring your voice provider can handle rapid number provisioning while maintaining compliance with local requirements. This includes having processes for quickly obtaining new numbers as you expand into new regions or increase capacity.

Working with Voice Service Providers

Provider Selection Criteria:

Choose voice providers with an established track record in China, direct carrier relationships, and demonstrated compliance expertise. Providers should handle the complexity of regulatory requirements while delivering reliable service quality across all regions where they operate.

Ongoing Management:

Effective voice operations in China require ongoing attention to regulatory changes, quality monitoring, and compliance verification. Your provider should proactively manage these requirements and communicate any changes that might affect your operations.

AVOXI's China Solution

Comprehensive Coverage Across China

AVOXI has established one of the most extensive international cloud voice services for China, reflecting years of strategic investment and partnership development throughout the country. This comprehensive coverage enables clients to deploy consistent voice communications solutions across all regions where they operate or serve customers.

Comprehensive Coverage and Number Availability:

• Nationwide reach: All 31 provincial-level administrative divisions covered
• Local presence: Hundreds of individual municipalities, including first, second, and third-tier cities
• Multiple number types: Toll-free national (400), local DIDs for inbound use cases, and TrueLocal with guaranteed local caller ID for two-way calling
• Rapid deployment: Immediate availability reduces deployment times from months to days for time-sensitive projects

Our inventory management strategy prioritizes immediate availability, allowing businesses to launch new services or expand existing operations with minimal delay. This local presence is particularly valuable for companies seeking to establish regional offices or provide localized customer support.

Quality Assurance Through Strategic Carrier Relationships

The foundation of AVOXI's voice quality in China rests on carefully cultivated relationships with the country's premier telecommunications carriers. These partnerships enable us to deliver superior call quality while maintaining the flexibility to adapt to China's evolving regulatory landscape.

Carrier Selection and Partnerships:

• Rigorous vetting criteria: Evaluation of technical capabilities, regulatory compliance history, geographic coverage, and service reliability
• Direct relationships: Cover more than 90% of China's provinces, eliminating intermediaries
• Inherent Redundancy: Ability to provision numbers from multiple carriers, or units with a carrier, to reduce the risk of numbers being shut down in part or in full

Network Architecture and Optimization:

• Intelligent routing: Real-time optimization based on quality metrics and network conditions
• Quality monitoring: Continuous evaluation of packet loss, jitter, latency, and mean opinion score (MOS)
• Dynamic adaptation: Circumvents network congestion and avoids underperforming routes

Redundancy design: Multiple carrier options

Our software routing intelligence continuously optimizes call paths to maintain call quality even during periods of high telecommunications traffic. This design philosophy prioritizes reliability, recognizing that consistent availability is often more critical than absolute voice quality for business communications.

Compliance Expertise and Support

Navigating China's complex telecommunications regulations requires specialized knowledge and experience. AVOXI has developed deep expertise in this domain, allowing us to guide clients through compliance requirements while minimizing administrative burden.

Regulatory Expertise and Ongoing Compliance:

• China specialists: A dedicated team maintaining close relationships with relevant authorities
• Continuous monitoring: Tracking of policy changes, enforcement trends, and compliance requirements
• Remediation guidance: Clear direction for restoring compliance when discrepancies arise
• Regular updates: Translation of complex regulatory language into clear business implications

Documentation and Registration Support:

• Comprehensive assistance: Preparation of all required registration materials
• Template provision: Business license documentation, representative forms, and use case descriptions
• Quality assurance: Review services, ensuring materials meet current requirements before submission

Our proactive communication approach enables businesses to adapt to changing requirements without service disruptions, thereby maintaining a good standing with telecommunications authorities throughout their operations.

AVOXI TrueLocal: Optimized Two-Way Voice for China

AVOXI's TrueLocal service represents a specialized solution designed specifically to address the unique challenges of voice communications in China. This offering provides two-way voice with local caller ID, delivering significant business benefits for both inbound and outbound communications.

Performance Advantages and Business Impact:

• Improved answer rates: Local Chinese numbers achieve significantly higher answer rates compared to international numbers
• Consumer trust: Addresses growing wariness about answering calls from unknown or international sources
• Fraud awareness: Responds to heightened sensitivity from telecommunications fraud awareness campaigns
• Enhanced customer satisfaction: Streamlined callback processes improve service efficiency
• Strengthened brand perception: Local identity builds stronger customer relationships compared to international approaches
• Industry value: Particularly valuable for financial services, retail, and B2B sales operations

Service Features:

• Caller ID consistency: Same number displays for both inbound and outbound calls
• Simplified callbacks: Customers can easily return calls to the number from which they received calls
• Automated Intelligence: With Intelligent Caller ID, automatically select the best local number to present without agent intervention

TrueLocal fosters immediate recognition and trust while streamlining customer service operations, making it an essential component for businesses serious about succeeding in China's telecommunications landscape.

Conclusion: Succeeding in China's Telecommunications Landscape

China's telecommunications market represents both an extraordinary opportunity and a unique challenge for global businesses. With 1.6 billion mobile subscribers and a rapidly evolving digital ecosystem, the potential for growth and engagement is unmatched anywhere else in the world. Yet the specialized regulatory framework, technical requirements, and cultural expectations create a complex operating environment that requires careful navigation. Success demands more than technical capability—it requires understanding China's telecommunications governance, managing regional infrastructure variations, and navigating compliance requirements that reflect China's commitment to maintaining a secure telecommunications environment.

Partnering with experienced providers represents the most important strategy for success in China's telecommunications landscape. The nuances of regional requirements, evolving regulations, and technical optimization can be challenging for even large enterprises to master independently. AVOXI's long-standing presence in China has enabled us to develop deep expertise in navigating these challenges, with extensive coverage, quality-focused network architecture, and specialized compliance support. By combining technical capabilities with practical knowledge of operating effectively within China's regulatory framework, we provide clients with a trusted path to establishing reliable voice communications that build stronger customer relationships and create a sustainable competitive advantage.

Want to learn more about establishing voice communications in China? Contact AVOXI's China specialists for a personalized consultation.