Chinese Telecom Industry Essay -- essays research papers fc

declination 11, 2001 was a long awaited day for both local businesses, as well as for foreign investors. It was the day that the Chinese State Council proclaim the Regulations for the Administration of Foreign Invested Telecommunications Enterprises (FITE) which were scheduled to come into effect on the first of January 2002. Since its accession to the WTO, foreign telecommunications pull in eyed what is arguably the largest telecommunications industry in the world, and growing at a footstep of over 20 per cent per annum. Having said that, Bureaucratic influences have hinder what were once crucial and foreseeable changes in regulation, the effect being buffer only by government investment funds into the industry.We encourage more investment into the telecommunications sector as we are moving into a critical fix up since the industry is deepening its reform and telecom equipment is upgrading, says Xi Guohua of the Ministry of Information industriousness (MII). However, althou gh this quote quite accurately reflects the attitude of the Chinese Government with respect to foreign investment, mingy regulation is a hurdle which is still reservation it difficult for foreign firms to penetrate the market. As of October 2004, 10 out of the stingy 12 applications made by foreign firms to provide telecom-related services have been pending approval for over 12 months .Along with these characteristic delays in Government approval (often blamed on red tape-ism) come the problems of stringent regulation...