Intel Corp CEO Craig Barrett last week added to the growing pressure on the government of China to relax its opposition to foreign investments in Chinese technology companies last week. Following a constructive meeting with Premier Zhu Rongji, Barrett said there were advantages to foreign investments in Chinese companies, despite the fact that China recently declared such investments illegal. Barrett said Intel plans to invest in China appropriately and according to Chinese law.
Chinese recent apparent about face on the issue of foreign investment is now at the center of a taught controversy involving a several major overseas telcos. The telcos, believed to include Cable & Wireless Hongkong, Sprint and NTT, have been ordered to sell-off their interests in ChinaÆs second carrier, China Unicom, or risk being excluded from future Chinese business opportunities. The telcos have threatened a legal response which could damage ChinaÆs plans to join the World Trade Organization.
