Telecom and internet services in China are set to be open to foreign ownership. Media reports stated that five areas – including home internet access and call centers – are scheduled to be open to full foreign ownership. Companies which are offering analysis services, as well as online data will have a cap of 55% foreign ownership.
Companies from abroad which are looking to offer such services will have to set their infrastructure in the Shanghai free trade zone. Regardless of that, overseas companies will be enabled to offer services all over China. However, the only exception is home internet access and foreign-owned companies will be allowed to provide the service in question only to those consumers who are in the free trade zone.
The Shanghai free trade zone was started in September 2012 and was part of efforts made by China to open up some areas of the economy. During the launch, policymakers said that restrictions imposed on foreign investment will be eased inside the Shanghai free trade zone.
The recent move has been made by policymakers in order to spur another wave of economic growth. Earlier this week, the government of China said that it will allow foreign firms to make video game consoles within the free trade zone and sell them in China.
Photo Credits: China Business Review