Telecommunication

WTO commitments or existing regulations on examination and approval

1. Foreign service suppliers will be allowed to establish joint venture enterprises and provide value-added telecommunication services in and between the cities of Beijing, Shanghai, Guangzhou, Chengde, Chongqing, Dalian, Fuzho, Hangzhou, Nanjing, Ningbo,Qingdao, Shenyang, Shenzhen, Xiamen, Xi'an, Taiyuan and Wuhan. Within 2 years after China's accession, there will be no geographic restriction. 2. Foreign investment shall be no more than 50%.

Commitments under CEPA

1. As from 1 October 2003, Hong Kong service suppliers are allowed to set up joint ventures in the Mainland to provide the following 5 types of value-added telecommunications services (To implement in accordance with the Mainlands Telecommunication business classification): (1)inteenet data center services; (2) store and forward services: (3) call center services; (4) internet access service; (5) content services. 2. Hong Kong service suppliers' shareholding in the joint venture enterprises engaging in the value-added telecommunication services mentioned in item 1 above should not exceed 50%. 3. There shall be no geographic restriction for the joint venture enterprises formed by Hong Kong service suppliers and the Mainland to provide value-added telecommunication services mentioned in item 1 above.

Examination and Approval procedure

1. The Chinese party submits project proposal, feasibility study report and relevant information to the department in charge of telecommunication. After approval, receive Written Opinion on Examination and Approval of Telecommunication Service Provision By Foreign-invested Enterprises; 2. Chinese investor submits the contract and articles of association of the foreign-invested telecommunication enterprise to be established to Ministry of Commerce by presenting Written Opinion on Examination and Approval of Telecommunication Service Provision by Foreign-invested Enterprise. The application for providing value-added telecommunication services within the province is submitted to the provincial department in charge of foreign trade and economic cooperation for examination and approval. After approval, receive Approval Certificate of Foreign-invested Enterprise; 3. Go through business license registration procedures with industry and commerce administration department; 4. Apply to the department in charge of telecommunication for Telecommunication Operation Permit.

Special Materials to be Submitted for Examination and Approval

Basic telecommunication service operation permit obtained in the country or region of registration.