China’s Ministry of Information Industry has strongly reaffirmed its opposition to foreign investment in the internet industry, despite having apparently turned a blind eye to several recent investments by some of the world’s leading internet companies.
Ministry official Zhang Chunjiang told a press conference in Beijing: Our government has never agreed to allow foreign investment in telecommunications services, including internet ISPs and ICPs. His boss, MII minister Wu Jichaun, had last month surprised international investors in the local internet industry when he said their investments were illegal, but he had later appeared to back away from taking too hard a line.
However Zhang again turned up the pressure on foreign companies, including Yahoo which launched a China venture after the minister’s initial warning. The question of those foreign investors who have already entered the ISP and ICP markets will be solved through consultations in line with the relevant regulations. The consequence of those improper investments will be the responsibility of those who broke the regulations, Zhang said.
He went on to say said this did not mean China’s market was not open, but pointed out the issue is being discussed as part of the country’s negotiations to join the World Trade Organization. He compared the situation to people standing outside the front door of an exhibition hall. Before the hosts had opened the door, people had entered the hall by other doors. This method is not right, he said. No matter, China is determined to develop the internet. In this endeavor we hope that local and foreign firms can work according to government regulations.
