Administrative Provisions on Foreign-Invested Telecommunications Enterprises (Revised in 2008)
Administrative Provisions on Foreign-Invested Telecommunications Enterprises (Revised in 2008)
Administrative Provisions on Foreign-Invested Telecommunications Enterprises (Revised in 2008)
Order of the State Council No. 534
September 10, 2008
(Promulgated by Order of the State Council No. 333 on December 11, 2001 and revised in accordance with the Decision of the State Council on the Revision of the Administrative Provisions on Foreign-Invested Telecommunications Enterprises on September 10, 2008)
Article 1 For the purposes of satisfying the need to open up the telecommunications industry to the outside world and promoting the development of the telecommunications industry, these Provisions are formulated in accordance with relevant laws and administrative regulations concerning foreign investment and the Telecommunications Regulations of the People's Republic of China (hereinafter referred to as the Telecommunications Regulations).
Article 2 A foreign-invested telecommunications enterprise refers to an enterprise lawfully established by Chinese and foreign investors within the territory of the People's Republic of China by way of a Chinese-foreign equity joint venture to engage in telecommunications services.
Article 3 Foreign-invested telecommunications enterprises shall, in addition to observing these Provisions in their telecommunications business activities, abide by the provisions of the Telecommunications Regulations and other relevant laws and administrative regulations.
Article 4 Foreign-invested telecommunications enterprises may engage in basic telecommunications services and value-added telecommunications services, the specific business classifications for which shall be subject to the provisions of the Telecommunications Regulations.
The geographical areas in which foreign-invested telecommunications enterprises may conduct business shall be determined by the industry and information technology department under the State Council in accordance with relevant provisions.
Article 5 The registered capital of a foreign-invested telecommunications enterprise shall comply with the following provisions:
1. The minimum registered capital for any enterprise that provides basic telecommunications services throughout the country or across different provinces, autonomous regions or municipalities directly under the central government shall be CNY1 billion, or for any enterprise that provides value-added telecommunications services, shall be CNY10 million;
2. The minimum registered capital for any enterprise that provides basic telecommunications services within a province, autonomous region or municipality directly under the central government shall be CNY100 million, or for any enterprise that provides value-added telecommunications services, shall be CNY1 million.
Article 6 The proportion of capital contributed by the foreign investor(s) in a foreign-invested telecommunications enterprise that is engaged in basic telecommunications services (other than radio paging services) shall not exceed 49% ultimately.
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