Glossary

VATS / EDI License (B21)

Definition

A VATS license (增值电信业务经营许可证) is the MIIT-issued permit that authorizes a company to operate value-added telecommunications services in mainland China. The catalog that defines these services — the Telecom Business Classification Catalog (电信业务分类目录, 2015 edition, effective 2016-03-01) — organizes value-added services under the B2 class. The B21 sub-category is online data processing and transaction processing (在线数据处理与交易处理业务). It covers three sub-items: transaction-processing services, electronic data interchange (EDI) services, and network/electronic-device data-processing services. The "EDI license" nickname comes from that middle sub-item.

The license is held by the operating entity — a mainland company (WFOE) or qualifying partner — not by a hosting provider. It is a separate instrument from the ICP filing and from the commercial ICP license. A platform that processes third-party transactions may need one, two, or all three, depending on what the product does.

What the VATS / EDI license is

A B2-class value-added telecom permit. The catalog places it under B2 (second-class value-added telecom services). B21 is one of six B2 sub-categories. The permit authorizes the holder to operate the defined service category inside mainland China.
Defined by what the platform does. The catalog definition: the business of providing online data processing and transaction processing via data/transaction-processing application platforms connected to public telecom networks or the internet. The trigger is the platform function — processing transactions for users over public networks — not the hosting location or the infrastructure vendor. The catalog has been amended only once since 2015 — a 2019 change to A12-4 (5G) — with all other categories unchanged.
Three sub-items under B21. Transaction-processing services (交易处理业务), electronic data interchange services (电子数据交换业务), and network/electronic-device data-processing services (网络/电子设备数据处理业务). A marketplace that processes third-party buyer-seller transactions falls under the first sub-item. A supply-chain system that exchanges structured business documents over a network falls under the EDI sub-item.
Applied for through the provincial communications administration for e-commerce-only operations (经营类电子商务) and internet-delivered services; non-internet cross-province services go to MIIT directly.

What the VATS / EDI license is not

Not the ICP filing. The ICP filing (Bei'an) registers a mainland-hosted site with MIIT. The VATS license permits a specific category of telecom business activity. They are different instruments with different authorities and different triggers.
Not the commercial ICP license. The ICP license (ICP证) covers commercial online platforms and paid services — marketplaces, paid content, regulated categories. B21 covers online data processing and transaction processing. A marketplace that hosts third-party sellers may trigger both, but the two permits address different regulatory questions.
Not the CDN license. The CDN license (增值电信业务经营许可证—CDN) is a separate B1-class permit that authorizes an operator to run CDN services. It sits in a different catalog class (B1, first-class value-added services) from B21. The two licenses cover different services and are held for different reasons.
Not a filing you can skip because your platform is offshore. The trigger follows what the product does — processing transactions over public networks — not where the servers sit. An offshore platform serving mainland users still needs the assessment.

The 2024 pilot: equity-cap removal in four zones

On 2024-04-08, MIIT issued notice 工信部通信函〔2024〕107号, announcing an expansion of opening-up for value-added telecom services. The notice removes the foreign-equity cap for specific service categories — including IDC, CDN, ISP, online data processing and transaction processing, and parts of the information-services category — but only in four designated pilot zones:

Beijing's comprehensive demonstration zone for expanding opening-up in the services sector
Shanghai — the Lingang New Area of the FTZ and the socialist modernization leading area (counted as one locality with two designations)
Hainan Free Trade Port
Shenzhen pioneer demonstration zone

The equity-cap removal does not apply nationwide. It applies only in approved pilot areas. The information-services component carries explicit exclusions: internet news information, online publishing, online audio-visual, and internet cultural operation remain outside the scope.

Foreign-invested telecom enterprises intending to operate these services in pilot areas must apply to MIIT for a telecom business pilot approval (试点批复) and operate in compliance with that approval and applicable laws. The notice does not state processing times, fees, or renewal periods for the pilot approval.

The terms "B21" and "EDI" do not appear in the notice itself. The notice names service categories in Chinese. The B21 code and the EDI nickname come from the catalog definition, which is how the notice's "online data processing and transaction processing" maps to the existing classification system.

Why it matters for foreign companies

Marketplace and platform operators need to classify early. If your product processes third-party transactions — a marketplace, an online transaction platform, a B2B exchange — the B21 assessment belongs in the same planning window as the ICP filing and ICP license assessments. The three permits address different questions; all three may apply.

The pilot changes the equity picture in four zones, not everywhere. A global company that wanted majority ownership of a B21-holding entity previously faced a foreign-equity cap. In the four pilot zones, that cap is removed — subject to the pilot-approval requirement. Outside those zones, the cap remains. Plan entity structure around the zone that applies, not around a nationwide rule that does not exist.

The entity foundation is the same. The same mainland entity — typically a WFOE — that holds the ICP filing typically also holds the VATS license and the WeChat Pay merchant account. The license does not change the entity requirement. It adds a layer on top of the baseline filing.

Common misconceptions

"EDI license is the same as an ICP license." They are different permits. The ICP license covers commercial online platforms and paid services. B21 covers online data processing and transaction processing. A marketplace may trigger both, but they are separate instruments with separate applications.

"The foreign-equity cap is gone." It is removed only in the four pilot zones, and only for the categories the notice lists. Outside those zones, the cap remains. The pilot approval is a separate MIIT process, not an automatic waiver.

"A marketplace only needs ICP filing." A marketplace that hosts third-party sellers and processes their transactions likely triggers both the ICP license and the B21 VATS license, on top of the baseline ICP filing. Filing alone covers the domain-hosting obligation, not the transaction-processing activity.

"The B21 code appears in the 2024 pilot notice." It does not. The notice names categories in Chinese. The B21 mapping comes from the catalog definition. Conflating the notice language with the catalog taxonomy leads to misreadings of scope.

Frequently asked questions

What does VATS stand for?

Value-Added Telecommunications Services (增值电信业务). The term covers all B-class services in the MIIT catalog — IDC, CDN, ISP, VPN, B21, call-center services, information services, and others. A "VATS license" refers to any permit under this catalog; the B21 sub-category is one specific type.

What does B21 cover?

Online data processing and transaction processing. Three sub-items: transaction-processing services, electronic data interchange (EDI) services, and network/electronic-device data-processing services. The definition comes from the Telecom Business Classification Catalog (2015 edition).

Who needs a B21 license?

Any entity operating a platform that processes transactions for users over public telecom networks or the internet — marketplaces, B2B exchanges, online transaction platforms, and EDI service providers. The trigger is the platform function, not the hosting location.

Is the foreign-equity cap removed nationwide?

No. The 2024 MIIT notice removes the cap only in four designated pilot zones: Beijing, Shanghai (Lingang + leading area), Hainan, and Shenzhen. Outside those zones, the cap remains.

Does the pilot notice use the terms "B21" or "EDI"?

No. The notice names service categories in Chinese. The B21 code and EDI nickname come from the catalog definition, which maps the notice's "online data processing and transaction processing" to the existing classification.

Is a B21 license the same as an ICP filing?

No. The ICP filing registers a mainland-hosted site. The B21 license permits a specific telecom business activity. They are separate instruments with separate triggers.

What this page does not cover

This page is definitional. It explains what the VATS/EDI license is and how it relates to other permits. It does not cover:

Application procedures or required documents. The process runs through the provincial communications administration or MIIT depending on scope. Specific document requirements are not published in English at a precision level we would stand behind.
Processing times, fees, or renewal periods. No primary source states these for B21 specifically. The pilot-approval timeline is also not stated in the notice.
Legal advice on whether your product triggers B21. Classification turns on the specific platform function. Confirm with counsel before making infrastructure or entity decisions.
The full catalog taxonomy beyond B21. Other B-class categories (CDN, IDC, ISP, call-center, information services) each have their own permit requirements. This page addresses B21 only.

Related terms

ICP Filing (Bei'an) — the mandatory registration for most websites hosted on mainland servers. It registers the domain and its operator with the authorities, ties the site to a hosting provider and a legal operator, and must be completed before the site can stay online.
ICP License (ICP证) — a separate permit for commercial online platforms and paid services — marketplaces hosting third-party sellers, platforms charging for access, and certain regulated categories. The trigger is what the product does, not where it is hosted.
CDN License (增值电信业务经营许可证—CDN) — the MIIT-issued permit that authorizes an operator to run CDN services in mainland China.
ICP Filing Lookup (备案查询) — the public query of filing records held by the Ministry of Industry and Information Technology (MIIT).

Source notes

Every factual claim on this page traces to one of the following primary sources or to content already published on this site.

Telecom Business Classification Catalog (2015 edition) — B2 category definition, B21 sub-category text, B-code structure. Extracted from the official .doc on MIIT's CMS (https://wap.miit.gov.cn/cms_files/filemanager/oldfile/miit/n1146295/n1652858/n1652930/n4509627/c4564595/part/4564599.doc, accessed 2026-10-02); definition text cross-verified verbatim against Guangdong Communications Administration HTML (https://gdca.miit.gov.cn/bsfw/bszn/jyxk/dxywflml/art/2021/art_5d50bf1fa6174629874fdc1227ecb07d.html, published 2017-08-10, accessed 2026-10-02).
MIIT notice 工信部通信函〔2024〕107号 (2024-04-08) — pilot zones, equity-cap removal, exclusions, pilot-approval requirement. Source: https://www.gov.cn/zhengce/zhengceku/202404/content_6944441.htm, accessed 2026-10-02.
MIIT 2019 catalog amendment announcement (2019-06-06) — A12-4 (5G) amendment only, all other categories unchanged. Source: https://www.miit.gov.cn/zwgk/zcwj/wjfb/tg/art/2020/art_b6a54a60f9c6471cb3a996106fc09cd5.html, accessed 2026-10-02.
Guangzhou Communications Administration FAQ — application routing (e-commerce-only → provincial; internet-delivered → provincial; non-internet cross-province → MIIT). Source: https://gzca.miit.gov.cn/bsfw/bszn/art/2019/art_c4e737c7e78a4d1e84e9d0ca0f6a0523.html, published 2019-07-17, accessed 2026-10-02.

On-site facts drawn from existing chinagateway.pro content: ICP filing, ICP license, CDN license, MIIT.