Administrative Provisions on Foreign-invested Telecommunications Enterprises
Administrative Provisions on Foreign-invested Telecommunications Enterprises
Administrative Provisions on Foreign-invested Telecommunications Enterprises
Order of the State Council [2001] No.333
December 11, 2001
The Administrative Provisions on Foreign-invested Telecommunications Enterprises have been passed at the 49th executive meeting of the State Council on December 5, 2001 and are hereby promulgated for implementation as of January 1, 2002.
Premier of the State Council: Zhu Rongji
Annex: Administrative Provisions on Foreign-invested Telecommunications Enterprises
Article 1 The present Provisions have been formulated according to relevant laws and administrative regulations concerning foreign investment and the Telecommunications Regulations of the People's Republic of China (hereinafter referred to as Telecommunications Regulation) for the purposes of satisfying the demand of opening the telecommunications industry to the outside world and promoting the development of the telecommunications industry.
Article 2 A foreign-funded telecom enterprise is one established legally by foreign investors and Chinese investors within the territory of the People's Republic of China by way of a Chinese-foreign equity joint venture for engagement in the telecom services.
Article 3 Foreign-funded telecom enterprises shall, apart from observing the present Provisions in their telecom business activities, abide by the provisions of the Telecommunications Regulation and other relevant laws and administrative regulations.
Article 4 Foreign-funded telecom enterprises may be engaged in the basic telecom services and value-added services, the specific business classifications shall be implemented according to the provisions of the Telecommunications Regulation.
The geographical scope in which foreign-funded telecom enterprises may do business shall be provided by the administrative department of the information industry under the State Council according to relevant provisions.
Article 5 A foreign-funded telecom enterprise shall meet the following provisions in terms of its registered capital:
1. An enterprise engaging in the basic telecom business of the entire country or in trans-administrative regions of provinces, autonomous regions or municipalities directly under the Central Government shall have a minimum registered capital of CNY2 bilion; if it is engaged in the value-added telecom businesses, it shall have a minimum registered capital of CNY10 milion;
2. If the enterprise is engaged in the basic telecom business of a province or autonomous region or municipality directly under the Central Government, it shall have a minimum registered capital of CNY200 milion; if it is engaged in the value-added businesses, it shall have a minimum registered capital of CNY1 milion;
Article 6 The maximum proportion of contribution of foreign investors of a foreign-funded telecom enterprise that is engaged in the basic telecom services (except for the radio paging services) shall not exceed 49%. The maximum proportion of contribution of foreign investors of a foreign-funded telecom enterprise that is engaged in the value-added services (including the radio paging business in the basic telecom services) shall not exceed 50%. The proportions of contribution of the Chinese and foreign investors in a foreign-funded telecom enterprise at different stages shall be determined by the administrative department of the information industry under the State Council according to relevant provisions.
Article 7 In order to engage in the telecom businesses, a foreign-funded telecom enterprise shall not only meet the requirements as mentioned in Articles 4, 5 and 6 of the present Provisions but also those as provided in the Telecommunications Regulation for engaging in the basic telecom businesses and value-added telecom businesses.
Article 8 The major Chinese investor of a foreign-funded telecom enterprise that is engaged in the basic telecom businesses shall meet the requirements as mentioned below:
1.
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