What is China’s B12 (CDN) License and Who Needs One?

Companies offering Content Delivery Network (CDN) services in China, such as accelerating website performance, distributing streaming media, or optimizing content delivery, must obtain a B12 License, also known as the CDN License or 增值电信业务经营许可证-内容分发网络业务 in Chinese. This comprehensive guide covers everything you need to know about the B12 License: its legal foundation, who requires it, the application process, and how to maintain compliance with Chinese regulations.

What is the B12 (CDN) License?

The B12 License, formally known as the “Content Delivery Network Business License” (内容分发网络业务许可证) is a commercial operating license required for businesses that operate CDN services providing network acceleration, content caching, and distribution services in Mainland China. The B12 License is specifically designed for companies that use distributed server nodes to improve content delivery speed and user access experience.

The B12 designation refers to the specific category within the Ministry of Industry and Information Technology’s (MIIT) telecommunications business classification system, where “B12” represents “Content Delivery Network Business” (内容分发网络业务).

This license serves as the government’s primary mechanism for regulating CDN operations, ensuring that businesses providing network acceleration services in China comply with local laws and maintain robust security standards.

What is the Legal Foundation of the B12 License?

As part of the Value-Added Telecommunications Services (VATS) or 增值电信业务, the Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例) applies to the B12 License.

Article 7 of the Telecommunications Regulations establishes that all telecommunications businesses require a license:

“The State shall implement a licensing system for telecommunications businesses in accordance with the classification of telecommunications businesses. Telecom operators shall apply to the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality for a telecommunications business permit pursuant to the provisions of these Regulations. No organisation or individual shall engage in telecommunications business without obtaining a telecommunications business permit.”

Article 8 clearly states that there are two types of telecommunications businesses: basic telecommunications and value-added telecommunications.

“Telecommunications businesses are categorised into basic telecommunications businesses and value-added telecommunications businesses. Basic telecommunications businesses shall mean the businesses of providing public network infrastructure, public data transmission and basic voice communication services. Value-added telecommunications businesses shall mean making use of public network infrastructure to provide telecommunications and information services.”

Who Needs a B12 (CDN) License?

The B12 License is required when providing Content Delivery Network services that accelerate content delivery to end users through distributed caching and optimization. According to MIIT’s Classification Catalogue of Telecommunication Services (2015), Content Delivery Network services refer to:

“the available services of providing users with the scatter storage and cache memory of contents, by utilizing the node server groups located in different regions to constitute the traffic distribution management network platforms, and delivering such contents to the rapid and stable cache servers on the basis of the dynamic traffic and load status of networks so as to enhance the response speed and services of users’ access to such contents.”

This therefore means that you will need a B12 License if your business revolves around any of the following:

CDN Acceleration Services:

• Website acceleration – Accelerating website loading and performance through distributed caching of static and dynamic content. Commonly used by portal websites (such as NetEase), e-commerce platforms (such as Taobao, JD.com), corporate websites with high traffic volumes, and news/media websites
• File download acceleration – Accelerating file downloads by caching files at edge locations. Includes software patch distribution, game client downloads, large file distribution platforms, mobile application distribution, and firmware/driver downloads
• Streaming media acceleration – Optimizing delivery of video and audio content through edge caching and intelligent routing. Includes video on-demand platforms (such as iQiyi, Youku, Tencent Video), live streaming services (such as Douyin, Kuaishou), audio streaming platforms, online education video platforms, and short-form video platforms
• Whole-site acceleration – Accelerating both static and dynamic content using intelligent routing and protocol optimization. Used by dynamic web applications, API acceleration services, real-time interactive platforms, online gaming platforms, and financial trading platforms
• Secure content delivery – Providing encrypted content delivery with enhanced security features. Used by e-commerce platforms, financial technology (fintech) applications, healthcare platforms, and enterprise applications requiring SSL/TLS encryption and DDoS protection

Any business that operates distributed server nodes to cache and accelerate content delivery for third-party users, provides network acceleration services, or operates a traffic distribution management platform will require a B12 License.

What are the Basic Requirements to Apply for the B12 License?

Obtaining a B12 License requires meeting specific ownership, operational, and infrastructure requirements set by MIIT.

Ownership Structure

Foreign ownership limits vary by region:

• Pilot Regions: According to the Ministry of Industry and Information Technology’s Notice on Launching Pilot Work for Expanding Opening Up of Value-Added Telecommunications Services (工业和信息化部关于开展增值电信业务扩大对外开放试点工作的通告), as of April 8, 2024 Beijing, Shanghai, Hainan, and Shenzhen have eliminated foreign capital restrictions for CDN business. WFOEs, in these four pilot regions, (Wholly Foreign-Owned Enterprises) can apply for VATS Licenses, including the B12 License.
• It is important to note, while legally permissible, obtaining a VATS license as a WFOE in pilot regions remains exceptionally difficult in practice. Approval thresholds are extremely high, with authorities primarily approving well-known multinational enterprises. As of 2025, only 13 companies total have successfully obtained VATS licenses as WFOEs across all categories since the pilot program began.
• Other Regions: According to the Administrative Measures for Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定), foreign-invested enterprises are restricted to 50% foreign capital maximum. Foreign companies must establish a joint venture (JV) structure with a Chinese partner holding at least 50% equity or collaborate with a Chinese partner such as AppInChina.
• Domestic companies face no ownership restrictions and can operate with 100% Chinese ownership nationwide.

Company Requirements

• Your company must be legally established under Chinese law with “Value-Added Telecommunications Business” (增值电信服务) and specifically “Content Delivery Network Business” (内容分发网络业务) explicitly listed in your business scope.
• You need minimum registered capital of CNY 1 million for provincial operations or CNY 10 million for cross-provincial operations.
• The company and its key personnel must have clean records with no telecommunications violations in the past three years and cannot be included in the list of dishonest telecommunications business operators.

Technical Infrastructure

• Distributed node server infrastructure must be deployed across multiple regions in China to form a traffic distribution management network platform.
• Network architecture must demonstrate capability for content caching, intelligent routing, and load balancing across edge nodes.
• Technical plans must demonstrate CDN functionality, performance optimization capabilities, traffic management, and service level agreements.
• A cybersecurity department with supporting internal regulations is mandatory, including network security monitoring, incident response procedures, and data protection measures.
• Companies must ensure compliance with data localization and cross-border data transfer regulations, along with robust security controls for cached content.

Personnel Requirements

• You need at least 3 Chinese employees with social security (社保) records covering 1 to 3 months from your company for the application materials.
• Technical staff with relevant qualifications in network engineering, CDN architecture, traffic optimization, and cybersecurity are required.
• Some regions mandate at least one IT-related professional with recognized certifications or degrees in computer science, network engineering, or related fields.

Foreign Enterprise Requirements

Foreign-invested enterprises face additional requirements:

• For pilot regions (Beijing, Shanghai, Hainan, Shenzhen): Foreign enterprises including WFOEs can apply for the B12 License, with the great level of difficulty detailed above, and must submit applications to the Ministry of Industry and Information Technology (MIIT) rather than provincial authorities.

For all foreign-invested enterprises, regardless of region:

• Your legal representative must be a Chinese national or permanent resident.
• You must demonstrate CDN operational experience through network architecture diagrams, node deployment plans, service contracts, and performance optimization documentation.

Additional documentation required for foreign enterprises:

• Foreign Investment Security Review Decision (《外商投资安全审查决定书》)
• Foreign shareholder overseas registration certificates with notarization and authentication
• Articles of association showing foreign investment structure
• Proof of foreign investor’s financial stability and business qualifications

Companies providing video streaming services may need additional content licenses. Industry-specific licenses may also apply to businesses serving regulated sectors such as online education or live streaming.

Technical Evaluation Requirements

Companies applying for B12 licenses must pass evaluation for the following systems:

1. ICP/IP Address/Domain Name Filing System (ICP/IP/域名备案系统) – Required for managing website filings and resource allocation
2. Access Resource Management Platform (接入资源管理平台) – Required for managing CDN node resources and customer connections
3. Information Security Management System (信息安全管理系统) – Required for monitoring and managing security across CDN infrastructure

Unlike some other VATS licenses, technical evaluation is not a prerequisite for submitting the B12 License application. You can submit your application first and complete the system evaluation before officially launching your CDN business operations. However, all three systems must be fully operational and pass evaluation before you can begin providing services to customers. These evaluations are provided free of charge by designated evaluation agencies.

How to Apply for the B12 (CDN) License

The B12 License application process is administered through regional telecommunications authorities under MIIT oversight. The process is complex and typically takes 60 to 90 business days from initial submission to final approval, though it can extend to 6 months for complex applications. Depending on the scale of your operations, the authority managing your application will differ:

Provincial Operations: Approved by the Provincial Communications Administration Bureau (省通信管理局) where the company is registered.

Cross-Provincial Operations: Must apply to the Ministry of Industry and Information Technology (国家工业和信息化部).

Major filing authorities include:

• Shanghai Communications Administration (上海市通信管理局) for Shanghai
• Beijing Communications Administration (北京市通信管理局) for Beijing
• Guangdong Communications Administration (广东省通信管理局) for Guangdong
• Shenzhen Communications Administration (深圳市通信管理局) for Shenzhen

Step 1: Material Preparation

Confirm enterprise qualifications meet requirements and prepare all application materials organized by category: main qualifications, personnel materials, infrastructure documentation, technical plans, and security measures.

Step 2: Online Submission

Access the Telecommunications Business Market Comprehensive Management Information System (电信业务市场综合管理信息系统). Complete and submit application forms, uploading all materials in PDF format.

Step 3: Material Review

MIIT’s local Communications Administration conducts initial formal review followed by substantive review. Some regions may request supplementary materials. Total typical review period is 60 to 90 business days.

Step 4: On-Site Inspection

Authorities will conduct inspection of CDN infrastructure and node deployment, verification of technical personnel, review of operational procedures and traffic management systems, and physical inspection of network equipment and monitoring systems.

Step 5: Approval Decision

Upon approval, the B12 License is issued with results notified via SMS and email. Rejections include specific reasons for non-compliance that must be addressed before resubmission.

Step 6: Certificate Collection

Choose on-site pickup or mail delivery. The certificate is valid for 5 years and requires renewal before expiration.

Important Renewal Requirements: Companies must apply for renewal 90 days before expiration and submit all complete materials at least 30 days before expiration, otherwise renewal will not be granted and this is considered automatic abandonment of renewal. Failure to renew on time may result in being listed on telecommunications bad faith lists. Finally, to remain compliant with local laws and regulations, companies are required to display the B12 License number provided on the certificate on their website.

The entire process generally takes 60 to 90 business days (approximately 3 to 6 months) from submission to approval. Complex applications involving large-scale infrastructure or additional documentation requests may extend this timeline.

What Documents are Required for Application?

• Company Documents – Business license (营业执照) with telecommunications scope (增值电信服务) and CDN business scope (内容分发网络业务), company articles, legal representative ID (法人代表身份证) with photo, and shareholder identification.
• Personnel Documents – Social security certificates for at least three employees, technical staff educational certificates and certifications where required, and employment contracts.
• Business Materials – License application form, business development plan, technical solution demonstrating CDN capabilities, data security assurance plan, and traffic management procedures.
• Infrastructure Documents – Network topology diagrams, node deployment plans across regions, bandwidth agreements with telecommunications operators or ISPs, server and network equipment lists with specifications, performance monitoring system documentation, and traffic distribution management platform specifications.
• Compliance Documents – Cybersecurity department establishment records, data protection regulations and procedures, incident response plans, and operational security policies.

All copies must be stamped with your company seal. Foreign language documents require certified Chinese translations. Requirements will vary by province. Due to the complexity of this process, it is recommended you work with a partner that is familiar with this process, such as AppInChina. This will not only reduce application delays, but will also increase the likelihood of the application being successful.

What Are the Consequences of Operating Without a B12 License?

Operating telecommunications or internet-based CDN services in China without a valid B12 License directly violates Chapter 6 of the Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例) and carries significant legal and operational risks:

• Criminal liability for serious offenses such as data misuse, illegal network operations, or market disruption.
• Administrative penalties including warnings, rectification orders, and confiscation of illegal gains.
• Fines ranging from CNY 5,000 to CNY 1 million, or calculated as 3 to 5 times the amount of illegal income.
• Business restrictions including suspension of operations, forced shutdown of CDN services, or revocation of telecom permits in severe cases.
• Blacklisting of the entity and key personnel, preventing future telecommunications business operations.
• User-focused remedies such as mandatory service migration support, apologies, and compensation for service disruptions or losses.
• Additional liability for companies and approval agencies if services are carried out during the application process before license approval.

It is critical to note that you cannot operate CDN services while your B12 License application is pending. Both your company and the approval agency will face penalties if unlicensed operations are discovered during the application period.

How Can AppInChina Help?

At AppInChina, we provide comprehensive B12 License services to help international businesses deploy CDN services in China. We can help by:

• Providing a free compliance assessment to identify what is required for your solution to stay compliant in China
• Preparing application documents and submitting the application on your behalf.
• Translating any documents that aren’t already in Chinese.
• Liaising with provincial authorities throughout the approval process.
• Managing annual audits and ensuring ongoing compliance.

Contact us to get started with deploying your content delivery and network acceleration solutions in China.