Chinese Telecom Joint Ventures: No Entry Without Permission

October 31, 2001 | BY

clpstaff &clp articles

Baker & McKenzieChina's telecom regulator is on the offensive. This time, instead of targeting foreign telecom wrongdoers, the Ministry of Information…

Baker & McKenzie

China's telecom regulator is on the offensive. This time, instead of targeting foreign telecom wrongdoers, the Ministry of Information Industry (MII) is looking closer to home. The culprits are the domestic joint ventures (established by China's main telecom operators) who have been providing telecom services without first seeking approval from the central or local telecom authorities.

In July 2001, the MII issued the Issues Related to the Establishment of Wholly Chinese-owned Equity Joint Venture Companies by Telecommunications Carriers for the Provision of Telecommunications Services Notice (the Notice). The Notice reiterates that in accordance with the PRC Telecommunications Regulations (中华人民共和国电信条例) (the Telecom Regulations), issued in September 2000, telecom operators in the PRC are required to obtain an operating permit before they start providing telecom services.

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