China Unicom

Template:Short description Template:Infobox company Template:Chinese China United Network Communications Group Co., Ltd., doing business as China Unicom, is a Chinese state-owned telecommunications operator. Originally founded in 1994 as a wireless paging and GSM mobile operator, it currently provides a range of services including mobile network, long-distance & local calling, data communication, Internet services, digital television, and IP telephony. As of 2022, China Unicom is the third-largest wireless carrier in China and the sixth largest mobile provider in the world.<ref name=":0232">Template:Cite book</ref>

History

China Unicom, then known in Chinese as Template:Zh, was founded as a state-owned enterprise in 1994<ref name=":0232" /> by the Ministry of Railways, the Ministry of Electronics and the Ministry of Electric Power Industry;<ref name="statecouncil1993"/> the establishment was approved by the State Council in December 1993.<ref name="statecouncil1993">Template:Cite press release</ref>

China Unicom was among six state-owned companies that built the communications infrastructure and assisted in financing the Ministry of Industry and Information Technology's Connecting Every Village Project, which began in 2004.<ref name=":1">Template:Cite book</ref>Template:Rp The project aimed to promote universal telecommunications and internet access in rural China.<ref name=":1" />Template:Rp The program successfully extended internet infrastructure throughout rural China and promoted development of the internet.<ref name=":1" />Template:Rp

China Unicom has operated a CDMA network in Macau since OctoberTemplate:Nbsp18, 2006<ref>Template:Cite news</ref> and internet services in North Korea since 2010.<ref name=":0">Template:Cite news</ref> Template:As of, the company had 125 million GSM subscribers and 43 million CDMA subscribers.<ref>Template:Cite web</ref> As of November 2008 the CDMA operations have been moved to China Telecommunications Corporation (China Telecom Group).<ref name="forbes">Template:Cite news</ref> On 7 January 2009, China Unicom was awarded WCDMA license to expand its business to 3G telecommunication.<ref>Template:Cite news</ref> UMTS (Universal Mobile Telecommunications System) was launched in major cities across China on May 17, 2009.Template:Citation needed

On July 11, 2020, China Unicom joined hands with Lu Han to launch the "FuLu Companion Card", which sounded the forward number for the further development of 5G. LuHan also officially unlocked his new identity and became a "China Unicom Innovation Partner", with the "FuLu companion card" to bring exclusive benefits and surprises to the majority of Unicom users.<ref>Template:Cite web</ref>

IPOs

In February 2000 a subsidiary "China Unicom Hong Kong" was incorporated in Hong Kong and was listed on the Hong Kong Stock Exchange on June 22, 2000.Template:Citation needed

The intermediate parent company "China Unicom (Hong Kong) Limited" was "China Unicom (BVI) Limited", Template:As of, the BVI company owned 77.47% shares of China Unicom (H.K.). In turn, China Unicom (H.K.) owned the operating subsidiaries of the group. In 2002, another intermediate parent company "China United Network Communications Limited" was established in Shanghai (headquartered in Beijing), to own 51% stake of "China Unicom (BVI) Limited" as well as listing the shares in the Shanghai Stock Exchange.<ref>Template:Cite web</ref> Template:As of, state-owned China Unicom Group owned 74.6% shares of the A share company,<ref name=ChinaUnicom2002AR/>Template:Rp in turn the A share company owned 73.84% of the BVI company.<ref name=ChinaUnicom2002AR>Template:Cite web</ref>Template:Rp The BVI company owned 77.47% shares of the red chip company.<ref>Template:Cite book</ref> To sum up, the Chinese Government via A share company, owned 42.67% stake of the operating subsidiaries, as well as additional 20.27% stake by the minority stake in the BVI company.

Merger with China Netcom

On June 2, 2008, China Unicom announced its intention to sell its CDMA business and assets to China Telecommunications Corporation (China Telecom Group) for a combined total of 110 billion RMB<ref name=forbes/> and to merge the remainder of the company,<ref>Template:Cite web</ref>Template:Primary source inline in a share swap valued at US$56.3 billion (based on Unicom's stock last traded price) on June 2, 2008, with China Netcom.<ref>Template:Cite web</ref> The CDMA business was officially moved to China Telecom in early November.Template:Citation needed

In July 2009, China Unicom signed a $700 million deal with infrastructure vendor Ericsson to upgrade the company's GSM network.Template:Citation needed

In April 2012, China Unicom was a founding member in the formation of Cloud Computing Industry Alliance in Beijing. Other members of the alliance include Baidu, Tencent, and Alibaba.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

Partnership with Telefonica

In 2009, China Unicom (Hong Kong) agreed to a US$1 billion cross-holding with Spain's Telefónica.<ref>Template:Cite web</ref> In January 2011, the two partners agreed a further US$500 million tie-up in each other, which following completion in late 2011, Telefónica will hold a 9.7% shares in China Unicom (H.K.), while the red chip company will own 1.4% shares of the Spanish firm.<ref>Template:Cite news</ref> The companies also agreed to deepen their cooperation in areas such as procurement, mobile service platforms, service to MNC's wholesale carriers, roaming, technology, among others, where both companies have been cooperating since the signature of their strategic alliance agreement.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

In June 2012, China United Network Communications Group (China Unicom Group), the ultimate parent company of Hong Kong listed company "China Unicom (Hong Kong)", had agreed to buy back about 1.1 billion shares (approx. 4.6% of the share capital) of the red chip company from Telefónica for an approx. HK$11 billion. (HK$10.21 per share; by narrow band floating exchange rate approx. US$1.4 billion), via an unlisted subsidiary "China Unicom Group Corporation (BVI) Limited". Immediate after the deal, Telefónica still owned 5% of China Unicom (H.K.).<ref>Template:Cite news</ref><ref>Template:Cite press release</ref> In 2014 Telefónica sold a further 2.5% shares of "China Unicom (H.K.)" for HK$6.66 billion (HK$11.14 per share).<ref name="Telefonica2016AR">Template:Cite web</ref>Template:Rp

During year 2016, Telefónica sold a further 1.51% shares of "China Unicom (H.K.)" for HK$2.822 billion (HK$7.8 per share),<ref name="Telefonica2016AR" />Template:Rp<ref>Template:Cite news</ref> Template:As of Telefónica owned 1% shares of the red chip company (decreased from 2.51% year-to-yearly), as well as Telefónica's director César Alierta, still served as a director of "China Unicom (H.K.)".<ref name="Telefonica2016AR" />Template:Rp

Mixed-ownership reform of state-owned enterprise

In 2017 China Unicom became one of the pilot projects of the mixed-ownership reform of the Chinese state-owned enterprise, which saw a decrease in the Government's ownership.<ref>Template:Cite news</ref>

In 2017 the Class A listed company of the group introduced ten strategic investors: state-controlled China Structural Reform Fund, state-controlled listed company China Life Insurance, a private equity fund (Template:Zh) that was owned by China Cinda Asset Management and a company related to Tencent,<ref group="nb">An indirect unit holder of the fund (Template:Zh), was owned by some managers of Tencent. It was stated as a "new OPCO" (new operating company) of Cayman-incorporated listed company Tencent Holdings.<ref>Template:Cite web</ref></ref> a private equity fund partially owned by Baidu<ref group="nb">One of the unit holder of the fund was indirectly owned by Baidu Netcom Science Technology (Template:Zh); the stake of Baidu Netcom was 99.5% owned by Robin Li; the stake was pledged to Baidu Online Network Technology (Beijing) (Template:Zh), an indirect subsidiary of Cayman-incorporated Baidu Inc., thus it was considered as part of Baidu Group.<ref>Template:Cite web</ref> Another indirect unit holder (Template:Zh), owned by some of the managers of Baidu, was linked to Baidu by the Chinese media, but Baidu denied to comment.<ref>Template:Cite news</ref> </ref> and Industrial Bank (Template:Zh), a private equity fund that related to JD.com (Template:Zh),<ref group="nb">The indirect unit holder of the private equity fund (Template:Zh) was 45% owned by Liu Qiangdong founder of JD.com (Jingdong) and 55% by Sun Jiaming (Template:Zh), a senior manager of JD.com. Jingdong Bangneng was listed as a consolidated variable interest entity of JD.com<ref>Template:Cite web</ref></ref> a public company Ali Venture Capital (Template:Zh),<ref group="nb">The stake of the company was 80% owned by Jack Ma, but also pledged to Alibaba Group. It was considered as a subsidiary and/or consolidated entity of Alibaba Group.<ref>Template:Cite web</ref></ref> a public company Suning Commerce Group and three minor private equity funds that was subscribed by companies such as Kuang-Chi and CRRC Group.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

In the same year, the fund raised by the A share company was injected to the Hong Kong incorporated red chip company, via "China Unicom (BVI) Limited", for HK$13.24 per share (for a maximum of 6.64 billion share / HK$88 billion).<ref>Template:Cite news</ref>

U.S. sanctions

Template:See also In October 2019, a group of U.S. senators urged the Federal Retirement Thrift Investment Board to divest U.S. pension money from any investment in China Unicom for providing telecommunications services to disputed artificial islands in the South China Sea.<ref>Template:Cite news</ref> In August 2020, the United States Department of Defense published a list of companies operating directly or indirectly in the United States with ties to the People's Liberation Army. China Unicom was included on the list.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

In October 2020, the Federal Communications Commission (FCC) requested the United States Department of Justice report whether China Unicom poses a "national security risk".<ref>Template:Cite news</ref>

In November 2020, the U.S. President issued an executive order prohibiting U.S. companies and individuals owning stocks that the United States Department of Defense deemed to have links to the People's Liberation Army - which included China Unicom.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> In consequence of the order, the New York Stock Exchange delisted China Unicom in January 2021.<ref>Template:Cite news</ref>

In March 2021, the FCC initiated proceedings to revoke China Unicom's authorization to operate in the U.S. due to "national security" concerns.<ref>Template:Cite news</ref> In January 2022, the FCC revoked China Unicom's authorization to operate in the United States, giving it 60 days to cease providing telecommunications services.<ref>Template:Cite news</ref> In September 2022, the FCC added China Unicom to a list of companies considered "national security threats".<ref>Template:Cite news</ref>

In December 2024, the U.S. Court of Appeals for the Ninth Circuit rejected China Unicom's challenge of the 2022 FCC revocation of its authorization to operate in the U.S.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> In March 2025, the FCC opened an investigation into China Unicom and other Chinese companies regarding operations in the U.S. in violation of restrictions.<ref>Template:Cite news</ref> Also in March 2025, the United States House Select Committee on Strategic Competition between the United States and the Chinese Communist Party initiated an inquiry into China Unicom and issued subpoenas for company records in April 2025.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>

Response to invasion of Ukraine

Following the 2022 Russian invasion of Ukraine, China United Network Communications Group continued its operations in Russia through its subsidiary, China Unicom (Russia) Operations Limited Liability Company, maintaining business as usual despite international sanctions and widespread corporate withdrawals.<ref>Template:Cite web</ref><ref name=":02">Template:Cite web</ref> Research from the Yale School of Management placed the company in the "Grade F" category of "Digging In," indicating that it has defied demands for exit or reduction of activities in Russia.<ref name=":02" />

Equity investments

• PCCW (18.46%, held by unlisted portion of China Unicom Group)<ref>Template:Cite web</ref>
• Telefónica (1.27%, held by Hong Kong listed subsidiary "China Unicom (H.K.)")<ref name=Telefonica2016AR/>

China Unicom's most recent equity investments have shifted focus from traditional telecom infrastructure toward digital, cloud, and international growth.<ref name=":2">Exploring China Unicom (0762HK): Who’s Buying and Why? – DCFmodeling.com</ref>

• BlackRock: increased stake in China Unicom by 1% in Q1 2023 (now about 5%).<ref name=":2" />
• Vanguard: slightly reduced holdings by 0.5%.<ref name=":2" />
• Capital Group: maintained a stable position at 4.15%.<ref name=":2" />

Recent Equity & Strategic Investments

Year	Investment Type	Details
2023-2025	Digital/Cloud/AI	Massive reinvestment in CDSA business, cloud, AI, IoT, 5G<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
2023	Shareholder updates	BlackRock up to 5%, Vanguard slightly down, Capital Group stable
2024	International branches	New offices in Saudi Arabia, Peru, UAE, Uzbekistan under UniCom brand
2024	Fixed Asset Investment	Reduction to ~RMB 55 billion, focus on digital, less on new equity stakes

Surveillance allegations

In December 2020, The Guardian reported that a security researcher identified evidence of surveillance campaign against Americans by China Unicom via Caribbean mobile networks, Cable & Wireless Communications and BTC. China Unicom denied the allegations.<ref>Template:Cite news</ref>

See also

• Communications in China
• Telecommunications industry in China
• List of mobile network operators
• List of telephone operating companies

External links

• Template:Official website