China Reiterates Ban on Unauthorized Foreign Telecom Investments
July 28, 2006
China's MII (Ministry of Information Industry) announced on July 26 that it will more strictly enforce rules stipulated in 2002 that prohibit domestic telecom companies from leasing, transferring or selling their licenses to unauthorized foreign investors. With the licenses, unauthorized foreign investors can provide value-added telecommunication services in China, which is considered illegal. The ministry stated that domestic telecom operators who fail to comply with the regulations may be subjected to license revocation.