Foreign telecom investors are being given clear guidance for their
development in China after the State Council released the Rules for
Overseas Investment in the Telecom Industry on Friday.
The rules, which come into force on January 1, are the first set of
stipulations for overseas investment in China's telecom industry.
Operations in this key sector were previously tightly controlled by
the government and direct investment from overseas companies was
strictly forbidden.
In
accordance with rules of the World Trade Organization, which China
has joined officially, the telecom market must open to overseas
companies.
The new rules provide much detailed information for overseas
companies about how to invest in China's telecom industry.
They can set up joint ventures with domestic partners or directly
invest in a telecom operator, the rules said.
Yet their shares in telecom operators, which are divided by the
Chinese Government into basic telecom operators and value-added
operators, are stipulated as below 49 and 50 percent respectively,
according to the rules.
The Ministry of Information Industry (MII) said basic telecom
carriers refer to those which provide fixed-line, mobile,
satellite, data, international telecom services - while value-added
providers can operate Internet access, e-mail, teleconference and
voice mailbox.
Overseas investors should apply to the MII and other related
government ministries for operation licenses, the rules
stipulate.
Many foreign telecom operators said they paid close attention to
the rules and are studying possibilities for co-operation with
domestic partners.
"The rules mark a major move forward for the country's telecom
industry," commented Kan Kaili, an industry expert with Beijing
University of Post and Telecommunications.
(China
Daily December 22, 2001)