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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: DaveMG who wrote (1508)	9/14/1999 2:47:00 PM
From: Sawtooth	Read Replies (3) \| Respond to of 13582

WSJ. China to Enforce Ban on Investment In Telecom Services by Foreigners September 14, 1999 Associated Press BEIJING -- The Chinese government announced Tuesday it will enforce its ban on foreign investment in operating Internet and other telecommunication services -- one of China's fastest-growing industries. Several major Chinese Internet companies are part-owned by foreign Internet or media firms. Foreigners also are involved in operating Web sites and other Internet-related companies based in China. Minister of Information Industry Wu Jichuan said that since 1993, Chinese regulations have "clearly stipulated that no foreign investment is allowed in the operation of telecoms networks and services." However, China has not actively enforced the regulations. Mr. Wu said China allows foreign investment in manufacturing and development of telecoms equipment. He didn't respond to questions about how the government would enforce its ban on foreign investment in telecoms or specify how it applied to Internet-related businesses. The Ministry of Information Industry, which runs China's telecommunications and postal networks, has sought to shut out foreign competitors from a markets it views as strategically important. China's long-sought entry into the World Trade Organization could force that market open, obliging the ministry to loosen restrictions. In April, Premier Zhu Rongji offered to drop the total ban on investment in telecommunication services and allow 49% foreign investment in all services and 51% foreign ownership for value-added and paging services within four years. The concessions were part of an overall offer aimed at securing U.S. support for China's entry into the WTO. Mr. Wu was unable to comment on whether the offers stood in current WTO negotiations with the United States. Pressed to discuss how the ministry and China Telecoms, its monopoly phone company, would cope with foreign competition, Mr. Wu acknowledged that membership in world trade's rule-making body would present "both opportunities and challenges." "If China enters the WTO, the ministry must implement any commitments made by the Chinese government," he said. "We will do a good job of strengthening the telecoms sector whether we enter WTO or not." The number of Internet users in China surged past four million in June, up from 2.1 million at the end of last year, according to the China Internet Network Information Center. That explosive growth made the first overseas listing by a Chinese Internet company in July a huge success. Foreign investors snapped up shares worth $96.9 million in Hong Kong-based China.com, which is 8% owned by U.S. Internet access provider American Online Inc. Dow Jones and Co., which publishes The Wall Street Journal and The Wall Street Journal Interactive Edition, has a minority stake in Internet service Sohu.com (www.sohu.com), based in Beijing.