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One would expect tech-savvy China to have embraced eSIM technology long ago. However, due to unique intrinsic factors specific to mainland China, this has not been the case until now. The situation is changing, thanks to Apple’s decision to launch the iPhone 17 Air as an eSIM-only variant.
As noted in a recent post, the ultra-thin, titanium unibody frame of iPhone 17 Air required forfeiting a physical SIM card tray and boasted the lowest battery capacity in its lineup, at just 62 percent of the Pro Max variant’s energy density.
The removal of the physical SIM card tray in iPhone 17 Air has complicated Apple’s launch cadence in China. We’ll outline the reasons behind this complication and the efforts underway to resolve it.
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China Has Not Adopted eSIMs Due to the Phone Number-Linked Digital Payments Ecosystem, the Politburo’s ‘Great Firewall’ for the Internet, and the Mainland-Hong Kong Dual-Governance Structure
In 2020, China’s three largest telecom companies – China Mobile, China Unicom, and China Telecom – received government approval to support eSIMs, but only for IoT devices. Since then, eSIM use has expanded to include smartwatches and tablets like iPads, though no eSIM is issued without an ID check.
China’s reluctance towards eSIMs in smartphones stems from several factors:
- The extensive internet firewall known as the Great Firewall of China (GFC) prevents Google services from operating in the country. Anyone with an eSIM from a foreign carrier could potentially bypass this firewall without using a VPN.
- China’s digital payment ecosystem, which relies on phone numbers for registration through platforms like Alipay and WeChat Pay, is concerned about potential fraud if new numbers are easily procured via foreign eSIMs without proper ID checks.
- The unique legal status of Hong Kong residents visiting the mainland allows them to bypass the GFC. Currently, eSIM users of China Mobile HK rely on mainland telecom networks for connectivity.
From the perspective of China’s Politburo, maintaining a two-tier system where Hong Kong residents can access the country’s telecom network via eSIMs but mainlanders cannot is seen as an efficient way to maintain the GFC’s effectiveness.
China Is Finally Entering the Age of eSIMs, Thanks to Apple
However, China’s hesitation towards eSIMs is about to change. Apple is currently working with Chinese authorities to resolve regulatory issues for eSIM use in the iPhone 17 Air. According to SCMP, the three main telecom companies will provide eSIM support subject to regulatory approval.
Pilot initiatives have already been launched by China Unicom, and there are indications that an approval is imminent. Once eSIM support becomes available, it’s likely that Chinese authorities will implement safeguards such as locking locally sold smartphones to mainland carriers’ eSIMs. Apple might need to comply with these restrictions through software updates.
It’s reasonable to conclude that eSIM support for smartphones in China is imminent, and local manufacturers may follow suit given their history of closely mimicking Apple’s products.
