With nearly four decades in the region, Paul, Weiss has long been recognized as a leader and legal innovator among international law firms in Asia. Our Asia based partners have been consistently ranked in the top tier of practitioners in their areas of expertise.
Provisions on the Administration of Foreign-Invested Telecommunications Enterprises
Practices
December 21, 2001
The long awaited Provisions on the Administration of Foreign-Invested Telecommunications Enterprises (the "Provisions") of the PRC State Council were finally published on December 20. The Provisions will become effective as of January 1st, 2002.
We have attached our English translation of the Provisions and our analysis for your information.
For the first time in the history of the PRC, foreign investment in the telecommunications services business will be legally permitted from January 1 of next year. These Provisions attempt to implement the commitments made by the PRC government in connection with their accession to the World Trade Organization. Even though these Provisions have clarified the process for foreign investment in the telecommunications business, they do not answer all the questions one may have in this aspect. Notably, the question regarding the implementation of the geographical restriction is left unanswered and it remains unclear how this restriction will be implemented in practice. We will have to wait for further enlightenment by the Ministry of Information Industry.