China Unicom

China United Network Communications Group Co., Ltd.
Company type	State-owned enterprise
Industry	Telecommunications
Founded	1994
Founder	Chinese government (Ministry of Railways, Ministry of Electronics, Ministry of Electric Power Industry)
Headquarters	Beijing, China
Area served	China, Macau, North Korea, Russia
Products	Mobile communications, long-distance and local telephone calls, data transmission, Internet connectivity, digital TV, IP telephony
Owner	Chinese government

China United Network Communications Group Co., Ltd., commonly known as China Unicom (), is a telecommunications provider owned by the Chinese government. Established in 1994 initially as a wireless paging and GSM mobile service operator, the company currently delivers a broad range of services including mobile communications, long-distance and local telephone calls, data transmission, Internet connectivity, digital TV, and IP telephony. By 2022, China Unicom had grown to become the third-largest wireless carrier within China and ranked sixth worldwide among mobile network operators.

History

Originally named , China Unicom was founded in 1994 as a state-owned enterprise with backing from the Ministry of Railways, Ministry of Electronics, and Ministry of Electric Power Industry, following approval from the State Council of the People's Republic of China in December 1993.

As one of six state-owned enterprises responsible for building communication infrastructure, China Unicom played a significant role in supporting the Ministry of Industry and Information Technology's Connecting Every Village Project starting in 2004. This program focused on enhancing telecommunications and Internet access across rural areas in China, successfully expanding infrastructure and fostering nationwide Internet growth.

In October 2006, China Unicom introduced a CDMA network in Macau and extended its Internet services to North Korea by 2010. By April 2008, the company had amassed 125 million GSM subscribers alongside 43 million CDMA users. Later that year, in November 2008, its CDMA division was transferred to China Telecommunications Corporation (China Telecom Group). On January 7, 2009, China Unicom secured a WCDMA license to enter the 3G market and launched UMTS services in major Chinese cities by May 2009.

On July 11, 2020, China Unicom collaborated with entertainer Lu Han to release the "FuLu Companion Card," marking progress in its 5G development strategy. Lu Han was appointed as a "China Unicom Innovation Partner," providing exclusive offers to customers through this campaign.

IPOs

In February 2000, the subsidiary "China Unicom Hong Kong" was established in Hong Kong and subsequently listed on the Hong Kong Stock Exchange on June 22, 2000.

The intermediate holding company was "China Unicom (BVI) Limited," which held a 77.47% stake in China Unicom (H.K.) as of December 31, 2001. China Unicom (H.K.) managed the group's operating subsidiaries. In 2002, "China United Network Communications Limited" was created in Shanghai to acquire a 51% interest in China Unicom (BVI) Limited and list shares on the Shanghai Stock Exchange. As of December 31, 2002, the state-owned China Unicom Group owned 74.6% of this A-share company, which controlled 73.84% of the BVI entity. The BVI firm held a 77.47% share of the red chip company. Collectively, these arrangements resulted in indirect government ownership exceeding 60% across operating subsidiaries.

Merger with China Netcom

On June 2, 2008, China Unicom revealed plans to divest its CDMA operations and assets to China Telecommunications Corporation (China Telecom Group) for roughly RMB 110 billion while merging its remaining businesses with China Netcom through a share exchange valued at US$56.3 billion based on China Unicom’s stock price. The transfer of CDMA assets to China Telecom was completed by early November.

In July 2009, China Unicom entered into a $700 million agreement with Ericsson aimed at upgrading its GSM network infrastructure.

By April 2012, China Unicom became one of the founding members of the Cloud Computing Industry Alliance in Beijing alongside prominent companies such as Baidu, Tencent, and Alibaba Group.

Collaboration with Telefónica

In 2009, China Unicom (Hong Kong) and Spain's Telefónica established a cross-shareholding agreement valued at US$1 billion. This alliance was further strengthened in January 2011 when both parties invested an additional US$500 million into each other. Upon completion, Telefónica possessed a 9.7% stake in China Unicom (H.K.), while China Unicom held 1.4% of Telefónica’s shares. Their strategic partnership also expanded to include joint efforts in procurement, mobile platform development, wholesale services, roaming arrangements, and technological innovation.

By June 2012, China Unicom Group agreed to repurchase approximately 1.1 billion shares—equating to 4.6% of the company’s capital—from Telefónica for around HK$11 billion (US$1.4 billion), which lowered Telefónica’s ownership to 5%. Subsequent divestments saw Telefónica selling 2.5% of its shares in China Unicom (H.K.) in 2014 for HK$6.66 billion and another 1.51% in 2016 for HK$2.822 billion. At the close of 2016, Telefónica's stake had diminished to 1%, although its representative César Alierta continued serving on the board of China Unicom (H.K.).

Mixed-Ownership Reform of State-Owned Enterprise

In 2017, China Unicom was selected as a pilot entity for implementing mixed-ownership reform within Chinese state-owned enterprises, aiming to reduce direct government control.

The group’s Class A listed company brought in ten strategic investors, including state-affiliated bodies such as the China Structural Reform Fund and China Life Insurance. Private equity participants linked to leading technology companies also joined: Tencent–Cinda Limited Partnership (associated with Tencent), a Baidu-related fund, Industrial Bank, and a fund connected to JD.com. Additional investors comprised Ali Venture Capital (majority-owned by Jack Ma), Suning Commerce Group, alongside smaller private equity funds supported by firms like Kuang-Chi and CRRC Group.

Capital raised through this A-share issuance was funneled into the Hong Kong-incorporated red chip entity via "China Unicom (BVI) Limited" at HK$13.24 per share, amounting to approximately HK$88 billion for the subscription of 6.64 billion shares.

U.S. Sanctions

In October 2019, U.S. senators called on the Federal Retirement Thrift Investment Board to divest pension assets from China Unicom due to its provision of telecommunications services to disputed artificial islands in the South China Sea. By August 2020, the U.S. Department of Defense identified China Unicom as one of several companies with links to the People's Liberation Army operating within the United States.

In October 2020, the Federal Communications Commission (FCC) requested the Department of Justice to evaluate whether China Unicom represented a national security threat. The following month, President Donald Trump issued an executive order prohibiting American investments in firms connected to the Chinese military, including China Unicom. This led to the New York Stock Exchange removing China Unicom from its listings in January 2021.

The FCC initiated proceedings in March 2021 aimed at revoking China Unicom’s authorization to operate on U.S. soil due to security concerns and formally withdrew this permission in January 2022, mandating cessation of operations within 60 days. By September 2022, China Unicom was officially designated on the FCC’s national security threat list.

In December 2024, the U.S. Court of Appeals for the Ninth Circuit upheld the FCC’s decision to revoke China Unicom's license for U.S. operations. Subsequently, in March 2025, the FCC commenced an investigation into possible breaches of U.S. restrictions by China Unicom and other Chinese enterprises. Simultaneously, the U.S. House Select Committee on Strategic Competition between the United States and the Chinese Communist Party launched an inquiry and issued subpoenas for corporate documents in April 2025.

Response to the Ukraine conflict

In the wake of Russia's 2022 invasion of Ukraine, China United Network Communications Group sustained its operations within Russia through its subsidiary, China Unicom (Russia) Operations Limited Liability Company. Despite the imposition of international sanctions and numerous corporate exits, the company persisted in conducting business. According to research conducted by Yale School of Management, China Unicom was placed in the "Grade F" category under "Digging In," reflecting its decision not to withdraw or scale back activities in the Russian market.

Equity holdings

PCCW (18.46%, owned by the unlisted segment of China Unicom Group)
Telefónica (1.27%, held via the Hong Kong-listed entity "China Unicom (H.K.)")

Surveillance claims

In December 2020, The Guardian revealed that a security analyst uncovered indications that China Unicom engaged in surveillance targeting Americans through mobile networks in the Caribbean, such as Cable & Wireless Communications and BTC (The Bahamas). China Unicom refuted these accusations.

External links