Administration of the Construction of International Communications Facilities Provisions

The term "international communications gateways" includes international communications channel gateways, international communications service gateways and border area international communications gateways.

The term "international transmission network" means all telecommunications facilities such as wired communications facilities, radio communications facilities, satellite communications facilities, etc. used to effect communications from international communications channel gateways in China to countries and regions outside China.

Article 3: The Ministry of Information Industry will supervise and administer the construction of international communications facilities in accordance herewith.

The communications administrations of the provinces, autonomous regions and municipalities directly under the central government will supervise and administer the construction of international communications facilities in their respective jurisdictions in accordance herewith under the leadership of the Ministry of Information Industry.

Article 4: The administration of the construction of international communications facilities shall adhere to the principles of safeguarding sovereignty of the State over communications, ensuring the security of communications networks and information, breaking up monopolies, encouraging competition, promoting rational use of resources, maintaining order in the communications facilities construction market and transparency, fairness and impartiality.

Article 5: The construction of international transmission networks and international communications channel gateways requires possession of the right to operate international communications infrastructure.

The construction of international communications service gateways and border area international communications gateways requires possession of the right to provide international communications services.

Article 6: Construction of international communications facilities must comply with relevant State laws and regulations and must safeguard State rights and interests.

Construction of international communications facilities must satisfy the requirements of State plans for the development of international communications.

Construction of international communications facilities must conform with relevant regulations on State security and include the security facilities required by the relevant State departments.

Article 7: The rights to operate and maintain international transmission networks and international communications channel gateways within the territory and territorial waters of China must be owned by telecommunications service providers that have obtained the right to operate international communications infrastructure in China.

The rights to operate and maintain international communications service gateways and border area international communications gateways within the territory and territorial waters of China must be owned by telecommunications service providers that have obtained the right to provide international communications services in China.

Article 8: The Department of Comprehensive Planning of the Ministry of Information Industry is responsible for formulating specific international communications development plans and administering the construction of international communications facilities in accordance with such plans.

Article 9: Construction of international communications facilities shall be subject to the preliminary examination or the examination and approval of the Ministry of Information Industry.

Article 10: The examination and approval of the construction of international communications facilities shall comply with the following procedures:

(1) capital construction projects above the investment limit specified by the State shall be subject to the examination and approval of the State Development Planning Commission after the preliminary examination and agreement of the Ministry of Information Industry;

(2) technical transformation projects above the investment limit specified by the State shall be subject to the examination and approval of the State Economic and Trade Commission after the preliminary examination and agreement of the Ministry of Information Industry;

(3) construction projects not exceeding the investment limit specified by the State shall be subject to the examination and approval of the Ministry of Information Industry.

With the exception of the examination and approval of projects for the construction of international communications facilities in accordance with the procedures and limits of authority specified in the preceding paragraph, no other authority or work unit has the authority to examine and approve projects for the construction of international communications facilities.

Article 11: If the owner of international communications facilities that are to be constructed wishes to execute a memorandum of understanding for the construction, or an agreement for the construction and maintenance, of an international transmission network with a foreign organization or individual or with an organization or individual from the Hong Kong or Macao Special Administrative Region or Taiwan region of China, it shall submit the same to the Ministry of Information Industry for examination and approval prior to execution and may only execute the same after approval.

Article 12: When applying for examination and approval of a memorandum of understanding for the construction, or an agreement for the construction and maintenance, of an international transmission network, the owner of the construction project shall submit the following materials:

(1) an application, including an overview of the cooperating parties, the main provisions of the memorandum of understanding or agreement and the major issues; and

(2) the text of the memorandum of understanding or agreement.

Article 13: The Ministry of Information Industry shall give its written response to the applicant within 20 working days after acceptance of the owner's application for examination and approval of the memorandum of understanding for construction, or the agreement for the construction and maintenance, of the international transmission network. If the Ministry of Information Industry does not grant its approval, it shall notify the applicant in writing and explain the reason therefor.

Article 14: If a project for the construction of international communications facilities does not involve cooperation with any foreign organization or individual or any organization or individual from the Hong Kong or Macao Special Administrative Region or Taiwan region of China, the owner shall, when applying to the Ministry of Information Industry for preliminary examination or for examination and approval, submit the following materials:

(1) an application, including such important particulars as the reason for the construction of the project, the main features and the scale of the construction, the investment estimate, the raising of funds, the schedule, etc.;

(2) the project proposal, feasibility study or project construction plan, the contents thereof and the qualifications of the work unit preparing the same shall conform with relevant State provisions;

(3) photocopies of the business licence and the applicable telecommunications service operating permit;

(4) proof of creditworthiness; and

(5) other materials that the Ministry of Information Industry requests be submitted.

If the construction of an International Communications Gateway is involved, the approval document for the establishment of an International Communications Gateway shall also be submitted.

Article 15: If a project for the construction of international communications facilities involves cooperation with a foreign organization or individual or an organization or individual from the Hong Kong or Macao Special Administrative Region or Taiwan region of China, the owner shall, when applying to the Ministry of Information Industry for preliminary examination or for examination and approval, submit the text of the memorandum of understanding or the construction and maintenance agreement in addition to the materials listed in Article 14.

Article 16: When conducting a preliminary examination or an examination of a project for the construction of international communications facilities, the Ministry of Information Industry may do so by employing such methods as organizing experts to evaluate the same, engaging a consulting institution to conduct an appraisal, etc. and shall issue its opinion after preliminary examination or official reply on the basis of such evaluation or appraisal.

Article 17: The Ministry of Information Industry shall give its written response to the applicant within 30 working days after its acceptance of an application for preliminary examination, within the industry, of a project for the construction of international communications facilities above the investment limit submitted by the enterprise. If the application fails to pass preliminary examination, the Ministry of Information Industry shall notify the applicant in writing and explain the reason therefor.

The Ministry of Information Industry shall give its written response to the applicant within 45 working days after its acceptance of an application for the examination and approval of a project for the construction of international communications facilities not exceeding the investment limit submitted by the enterprise. If it does not grant its approval, it shall notify the applicant in writing and explain the reason therefor.

Article 18: While construction of its international communications facilities project is being carried out, the owner shall submit to the supervision, inspection and guidance of the Ministry of Information Industry and the communications administration of the province, autonomous region or municipality directly under the central government where the international communications facilities are being constructed.

Article 19: If an agreement for a project for the construction of international communications facilities is executed with a foreign organization or individual or with an organization or individual from the Hong Kong or Macao Special Administrative Region or Taiwan region of China without the examination, approval and consent of the Ministry of Information Industry or if relevant issues are withheld when applying for the preliminary examination or the examination and approval of a project for the construction of international communications facilities, the Ministry of Information Industry will not conduct a preliminary examination of such project or will not examine and approve the same. If the project has already passed preliminary examination, or already been examined and approved, by the Ministry of Information Industry, the Ministry of Information Industry will revoke its original opinion reached after preliminary examination or the approval document. If the project has already been examined, approved and consented to by the State Development Planning Commission or the State Economic and Trade Commission, the Ministry of Information Industry will notify the examination and approval work unit to revoke the approval document. If the project has already been constructed, it may not be operated.

Article 20: If international communications facilities are constructed and international communications are engaged in without the approval of the Ministry of Information Industry, the Ministry of Information Industry or the communications administration of the province, autonomous region or municipality directly under the central government will impose penalties pursuant to Article 70 of the PRC, Telecommunications Regulations. If a criminal offence is constituted, legal liability will be pursued in accordance with the law.

Article 21: If State personnel engaged in the administration of the construction of international communications facilities violate these Provisions, they will be punished in accordance with the provisions of Article 79 of the PRC, Telecommunications Regulations.

Article 22: The construction of communications facilities for communication with the Hong Kong and Macao Special Administrative Regions and Taiwan region of China will be administered with reference to the administration of the construction of international communications facilities.

Article 23: These Provisions shall be implemented as of August 1 2002.