BEIJING—The Chinese government issued new regulations on the administration of foreign-funded telecommunications enterprises in line with commitments China undertook upon its accession to the World Trade Organization (WTO).
The 25-article regulation will take effect on 1 January, 2002.
Foreign operators that want to set up joint ventures with their Chinese counterparts in basic telecom services nationwide or covering more than one province must have a registered capital of at least 2 billion yuan (US$242 million). For valued-added telecom services, the amount is 10 million yuan (US$1.21 million). If operations are limited to one province, the figures are reduced by a factor 10, 200 million yuan (US$24.16 million) and 1 million yuan (US$120,823) respectively.
Foreign investment in basic telecom joint ventures except paging services is limited to 49 percent, whereas for value-added services the limit is 50 percent.
The regulations also cover penalties in case of infringement.
