China`s Telecom Regulatory Regime on the Eve of WTO Accession

Abstract

Recent years have witnessed a continuous and rapid development of the telecommunications industry in China-trends which have stimulated prospective domestic and foreign investors in this sector. As part of its bid for joining the World Trade Organization (WTO), China has agreed to abide by the WTO’s Agreement on Basic Telecommunications Services and gradually open its telecommunications market to foreign investment. In an apparent effort to fulfill such commitments and prepare for the further development of the industry, China promulgated the first comprehensive ”Regulations on Telecommunications.” The new Telecom Regulations are designed to establish a generally pro-competitive telecommunications regulatory regime in the fields of regulatory independence, transparent licensing, and interconnection rights. While due to the legacy of the past the regulatory regime shows some room for improvement, the actual opening of the telecommunications sector to foreign competition lags noticeably behind what China has committed. Further legislative efforts are needed for a free and open telecommunications regulatory regime to occur in China.