“Cutting the card,” “card tray,” and “dual SIM standby”—these keywords that have accompanied Chinese consumers for fifteen years are quietly exiting the stage of history. On October 13, China Unicom, China Mobile, and China Telecom successively announced that they had officially obtained approval from the Ministry of Industry and Information Technology (MIIT) for commercial eSIM mobile phone trials. This marks the extension of eSIM technology in the Chinese market from smart wearables and IoT devices to smartphones.
This breakthrough not only enables Apple’s eSIM‑only iPhone Air to officially launch in China, allowing phones to operate without physical SIM cards, instantly switch carriers, and become thinner and more water‑resistant, but also—on the eve of the AI device boom—lays a critical connectivity foundation for the entire intelligent ecosystem.
From “Prohibition” to “Green Light”: Why Is 2025 the Turning Point?
After years of pilot programs and preparation, eSIM phone services have finally gained legal status in China. In mid‑October, the three major carriers received MIIT’s approval to officially launch commercial eSIM phone operation trials.
China Unicom was the first to receive approval in early September and opened a nationwide reservation channel in October. Within just a few days, the number of reservations exceeded 50,000. China Telecom and China Mobile obtained their licenses in October and rapidly followed up with service rollouts. This means that ordinary users no longer need to rely on overseas phone models—Chinese‑market models can now legally use eSIM services.
Previously, eSIM had been strictly restricted due to security concerns. So why the breakthrough in 2025?
1) Loosening of the Security “Shackles”: Dual Safeguards of National Encryption + Quantum Encryption
The core of eSIM is “over‑the‑air provisioning,” with its greatest risk being interception during transmission. For the past decade, regulators have worried that remote configuration could be exploited by foreign carriers or criminal networks.
In March 2025, the China Academy of Information and Communications Technology (CAICT) released the Research on eSIM Technology and Industry Development Trends, which for the first time established three major security baselines: full‑chain SM4‑SM9 national encryption, quantum random number pre‑deployment, and chip‑level trusted roots—essentially providing a “national‑grade insurance policy” for eSIM.
In the same month, the MIIT removed eSIM from the Negative List for Telecommunication Equipment Network Access Licenses, marking a clear policy turning point.
2) Real‑Name “Gray Rhino” Tamed: Offline Identity + Online Digital ID
China’s mobile phone real‑name registration rate has reached 99.8%, but eSIM’s “cardless” nature raised concerns about “user‑number separation.”
China Unicom’s 2025 pilot introduced a dual‑protection mechanism—users must visit official stores in person, where ID chips are read and facial recognition is conducted before provisioning. Online verification connects with the Ministry of Public Security’s CTID (Cyber Trusted Identity) system, where facial, fingerprint, and SMS verification complete activation within 30 seconds.
Only after this real‑name verification loop was proven viable did regulators agree to lift restrictions.
3) “Internal Circulation” of the Mobile Industry Needs a New Story
In the first half of 2025, China’s smartphone shipments showed little year‑on‑year growth, and surveys indicated that consumers now keep their phones for up to three years. The smartphone market urgently needed a new selling point to stimulate replacement demand.
eSIM enables one phone to host multiple numbers, paving the way for 5G‑Advanced, satellite calling, and vehicle‑device interconnection scenarios. In the future, eSIM could become the first true “killer‑level entry point” of the 5G era.
Carriers “Seizing the Beachhead” and Device Makers Taking Sides
1) Three Major Carriers, Three Strategies
China Unicom is the most proactive in supporting eSIM, having launched services in 25 provinces and cities. On September 12, 2025, Unicom officially announced that the China‑market iPhone Air would only support Unicom’s eSIM. This means that any Chinese consumer wishing to buy the thinnest iPhone must become a Unicom customer. Industry estimates suggest that the first two weeks of iPhone Air sales brought Unicom hundreds of thousands of new high‑end users.
Unicom’s intent to position eSIM as a “premium entry point” is clear. It has already adapted 75 eSIM‑enabled devices, covering major brands.
China Mobile, in contrast, has adopted a more conservative but inclusive approach—providing eSIM support for all device types, not just smartphones. Its services will also extend to smartwatches, tablets, and vehicle systems.
China Telecom remains cautious and is still in observation mode. At present, it primarily promotes a 39 CNY plan (about USD 5.40) offering 10 GB of data + 100 minutes of calls, with daily billing options suitable for short‑term users.
2) Mainstream Smartphone Brands Are Taking a Positive Stance
Apple has eliminated the SIM slot altogether, forcing Chinese users to “pick a side.” The iPhone 17 Air China‑market model completely removes the physical card tray, leaving only eSIM—a move dubbed by industry insiders as “the boldest decision yet.”
Apple’s confidence comes from the low price elasticity and strong upgrade inertia of its high‑end user base, combined with Unicom’s exclusive network partnership—creating a “soft and hard lock‑in.” But the risks are also clear: when traveling abroad, users must manually configure local eSIMs, which is a drawback for business travelers.
Huawei’s Mate XT tri‑fold debuts with eSIM support but retains one nano‑SIM slot, prompting users to joke that “adults don’t have to choose.” Keeping the physical slot serves as a “policy buffer”—if eSIM rollout lags in certain regions, users can instantly switch to a physical SIM, avoiding “brick phone” disasters.
Xiaomi has taken a wait‑and‑see approach. The Hong Kong edition of Xiaomi 14 Pro already supports eSIM, but the Chinese edition disables it through firmware. As eSIM affects battery, antenna, and internal stacking design, Xiaomi has chosen to wait for carrier subsidies before activating it.
eSIM + AI: The “Meridian Pathways” of Smart Terminals
The convergence of eSIM and AI first breaks through the physical constraints of device intelligence. The space occupied by a traditional SIM card slot can be reduced to one‑tenth through eSIM, freeing up critical room for miniaturization and functional integration.
The iPhone Air, with its ultra‑thin 5.6 mm body, owes its design to a pure eSIM layout. The saved internal space can house higher‑performance NPU chips or larger batteries, ensuring sustained operation for on‑device AI tasks.
Within the AIoT ecosystem, eSIM becomes the “invisible link” enabling large‑scale deployment. Industrial sensors and security drones often operate in harsh environments; a no‑slot design can cut failure rates by more than half.
China Mobile has already procured 70 million eSIM wafers, supplying AI‑enabled connectivity for smart vehicles and AR glasses. Meanwhile, China Unicom’s “Gewu CMP” platform connects 680 million devices, using AI to analyze eSIM network data—optimizing drone inspection routes and predicting device faults.
This “connectivity + AI” model is allowing carriers to transform from mere communication channels into intelligent service operators.
Challenges and Limitations: The Realistic Dilemmas Facing eSIM
Despite the enthusiasm surrounding eSIM, the current commercial trial phase still faces multiple constraints.
The first issue is inconvenient processing. During the trial, eSIM phone activation cannot yet be completed online—users must visit a physical service center, which is essentially no different from traditional SIM handling.
Second, restrictions on overseas usage remain. Chinese‑market devices can only activate domestic carrier eSIMs within China and can activate foreign eSIMs only once abroad. Conversely, international models cannot activate Chinese domestic eSIM plans.
Third, complicated phone replacement procedures. Previously, switching phones was as simple as removing and inserting a SIM card. With eSIM, users must first deactivate it on the old phone, then re‑download the profile to the new one. If the old phone is lost or broken, the user must visit a carrier branch to deregister.
Fourth, significantly higher repair costs. If a traditional SIM card slot is damaged, repairs cost about 100 CNY (approx. USD 13.80). However, if an eSIM chip’s soldering fails, the entire motherboard must be replaced. For the iPhone Air, Apple’s official repair quote is 3,299 CNY (approx. USD 455). In the eSIM era, most consumers may have to purchase AppleCare+, substantially raising user costs. In an economic downturn, whether consumers will be willing to pay remains to be seen.
Conclusion
The arrival of eSIM in China, on the surface, seems like “one less SIM slot,” but beneath it lies a paradigm shift: carriers moving from “selling voice” to “selling connectivity,” smartphone makers shifting from “selling hardware” to “selling services,” and users evolving from “owning numbers” to “subscribing to numbers.”
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.