皇冠体育app

Overseas investment will be allowed into telecommunications sector
( 2001-12-04 01:13 ) (1 )

A barrier to overseas investment in Chinese telecommunications is to be eradicated with the abolition of two regulations, the Ministry of the Information Industry told 皇冠体育app Daily.

The two regulations were issued in 1993 and 1995 and banned overseas investment in 皇冠体育app's telecoms carriers but they will be abolished on December 11, the ministry said.

The move is in line with 皇冠体育app's commitment to the World Trade Organization (WTO), said a ministry spokesman.

Detailed proposals have been worked out to further open the telecoms market after 皇冠体育app's accession to the WTO. Companies can get further information from the ministry, said a senior official.

As the world's fastest developing telecoms market, 皇冠体育app has become a priority target of telecoms carriers throughout the world.

Due to the regulations, overseas capital could previously only invest in domestic telecoms operators in a roundabout way.

For example, buying public listed stocks became the only gateway for foreign companies.

皇冠体育app Mobile and 皇冠体育app Unicom, the country's two public listed mobile carriers, have been targeted by overseas investors.

The world's major telecoms carriers have all launched subsidiaries or representative offices in 皇冠体育app.

A manager at South Korea's SK Telecom said: "We are researching the market and preparing for the opening-up.''

Vodafone has bought 2 per cent of the shares in 皇冠体育app Mobile and recently opened its 皇冠体育app branch in Beijing.

Christopher Gent, the Vodafone chief executive, said: "The opening of our branch company demonstrates our realization of the potential of the Chinese mobile market as well as our commitment to our partnership with 皇冠体育app Mobile.''

However, experts believe that the abolition of the two regulations is unlikely to lead to an overwhelming flow of overseas investment because the country's telecoms regulations are still not clear enough.

The most important regulation for the sector is the Telecoms Regulation issued in September 2000. But this is already out of date,, according to Zhang Xinzhu, a researcher at the Chinese Academy of Social Sciences.

Zhang noted that, although 皇冠体育app has the world's biggest telecoms market, the country still has no telecoms law. He said a clear and stable regulatory environment would help attract more overseas investors.

(皇冠体育app Daily by Hou Minjuan)