China, home to the world’s largest mobile subscriber base and a global powerhouse in telecommunications, is making a calculated return to eSIM technology after a sudden pause that left many industry watchers speculating. In a country where over 1.7 billion mobile connections exist, even minor shifts in telecom policy can ripple across global device manufacturers, software platforms, and connectivity providers. China eSIM reboot

Now, after a nearly two-year freeze on new eSIM activations, China’s big three operators—China Mobile, China Unicom, and China Telecom—are cautiously reopening the door to eSIM services. The initial comeback focuses not on smartphones but on wearables, IoT modules, and industrial applications, signaling a deliberate, risk-controlled rollout. These early moves reflect a renewed push by operators to modernize network infrastructure while addressing past concerns around cybersecurity, identity verification, and SIM fraud.

The return to eSIM isn’t just a technical upgrade—it’s a strategic step that intersects with national policy, global tech competition, and evolving consumer expectations. With the global market shifting toward embedded connectivity and 2G/3G networks being phased out, China’s telcos are under pressure to modernize—but without repeating the missteps that led to the previous shutdown.

This article explores why the eSIM pause happened, what has changed since then, and how the ongoing reboot could reshape China’s mobile ecosystem in the coming years.

Background: The Mid‑2023 Freeze

In mid‑2023, China Mobile, China Unicom, and China Telecom each halted their eSIM services. While official statements cited “maintenance and upgrades,” analysts pointed to deeper issues: a sharp rise in eSIM-related frauds—up 38% as reported by the Ministry of Public Security—and a lack of clear safeguards for identity verification and real-name registration. At that time, China had no unified standards for smartphone eSIM deployment, complicating cross-network portability and billing consistency.

China Unicom Leads the Comeback

China Unicom is the first of the trio to restart operations, once again offering eSIM packages in 25 provinces—including Beijing, Tianjin, and Hebei—for smart wearables, IoT modules, and a new ZTE eSIM notebook, though not yet for smartphones. Leveraging a ZTE partnership, Unicom’s relaunch signals cautious optimism focused on enterprise-grade and niche consumer segments.

What About China Mobile and China Telecom?

Both China Mobile and China Telecom are actively updating their back‑end systems in preparation for relaunch. Official statements indicate upgrades and trials—but no specific rollout dates yet. Industry watchers expect both operators to gradually expand services to consumer devices once compliance and security frameworks are firmly established.

Industry Experts Weigh In

John Canali, Principal Analyst at Omdia, observed that China’s eSIM efforts may have been premature. He noted that over‑the‑air profile switching remains a complex process, often requiring external system integrators—and that security perceptions varied, with some experts noting even physical SIMs possess vulnerabilities.

Canali also highlighted the cost implications: new security layers and expanded infrastructure teams would likely mean increased operational expenses.

Omdia telecom strategy analyst Yang Guang believes that the resumption of eSIM business is undoubtedly good news for my country’s operators, because the application of eSIM in the global market has begun to take shape, especially at the current time when AI is developing rapidly. The Internet of Things business that is strongly related to eSIM is a huge market for operators. Restarting eSIM operations will be of great benefit to operators, both from a technical and business perspective.

Navigating Risk: Security vs. Convenience

The phasing out of physical SIMs, particularly as China sunsets 2G and 3G infrastructure, sets the stage for eSIM adoption, especially in IoT devices where space and flexibility matter. Yet authorities remain cautious. Ensuring real-name verification and preventing SIM-swapping fraud remain top priorities.

China Unicom’s limited advisory notes that only wearables, notebooks, and IoT modules currently qualify—which likely reflects efforts to mitigate vulnerabilities while infrastructure matures.

Looking Ahead: Will Smartphones Return?

Assuming successful rollouts in segment one, momentum may carry eSIM into smartphones. But major hurdles remain:

• Regulatory framework: GSMA-style interoperability, real-name registration, and fraud-prevention frameworks must be in place.
• Security assurance: Operators and regulators must be confident in OTA provisioning’s integrity.
• Economic incentive: eSIM services must justify investments against operational costs.

China Unicom’s gradual rollout will be a critical test. If stable, China Mobile and China Telecom are expected to follow—potentially ushering in a new era for eSIM adoption across Mainland China.

Key Takeaways China eSIM reboot

Conclusion about China eSIM reboot

China’s telco giants are tentatively rebooting their eSIM offerings, prioritizing secure business IoT and wearables deployments before moving into the smartphone space. While China Unicom is leading the way, its rivals are closing the gap. Whether China will soon catch up to global eSIM maturity depends on balancing innovation with security, regulatory alignment, and economic viability.