Foreign telecommunication companies that wish to invest in China's telecommunication value-added service and Internet service should apply for relative licenses. They are not allowed to bypass China's regulation procedure and make a detour into China's market, said the Ministry of Information Industry of the People's Republic of China in an announcement.

The announcement said that domestic telecommunication enterprises cannot rent, transfer or scalp the license to the foreign investors. Furthermore, they should not provide source, place or equipment to the foreign companies that engage in telecommunication service illegally in China.

It is said that foreign investment to China's telecommunication market is slow at present. Therefore, the foreign companies take the domestic SP as springboard to detour to China's market in order to get a share of the rising profit of China's telecommunication.

Professors said that the regulation is to regulate but not to forbid foreign companies to invest in China's telecommunication value-added service. China needs a more transparent telecommunication and internet market. If foreign companies all detour to China's market, it will be difficult for the Government to supervise them.

By People's Daily Online