China eyes Net reform
Laws governing non-Chinese ISPs
may be rethought: minister
September 27, 1999: 8:42 a.m. ET
SHANGHAI (Reuters) - China's laws that do not allow
international investors to provide Internet content or
servers could be changed by year-end, Minister of
Information Industry Wu Jichuan said Monday.
He said issues related to Internet investment by
international firms were now under discussion, but
offered no clue as to what the resolution might be.
"The current law does not permit foreign investment in
ISP (Internet service providers) or ICP (Internet content
providers )," he told reporters at a Fortune 500 global
business conference.
"There should be legal changes by the end of the
year."
Asked to specify, Wu said: "I don't know. We are
discussing the issue."
Wu sent chills through the budding online industry
last week when he told a newspaper that international
investment in ICPs -- long regarded as a regulatory grey
area -- were prohibited.
Wu also said Monday that existing Internet
investments by non-Chinese citizens would have to be
"put in order", but later conceded that the issue had not
been resolved.
The outspoken minister, who had steadfastly opposed
international investment in telecommunications
operations, has often been at loggerheads with reformist
Premier Zhu Rongji.
Despite the policy concerns, Yahoo! Inc. announced
an agreement with Chinese computer company Founder
last week to set up a joint venture and run a
mainland-based Web site.
Dozens of other foreign-invested content providers,
including popular web portals Sina.com, Sohu.com and
Zhaodaola.com, have continued business as usual since
Wu's remark last week.
Internet users in China have doubled their ranks to
more than 4 million since the end of last year.
Wu also said China expected to surpass 20 million
Internet subscribers by the end of 2003, while other
conference participants forecast the number would reach
30 million.
Businessmen at the conference complained that high
telecommunications fees were restricting the development
of the industry. Wu said he hoped to bring down the fees
but said that he must also ensure enough revenue to
maintain the country's telecommunications infrastructure.
|
