China's WTO Entry
Foreign Stake in Telecom to Be raised

Taiwan is expected to raise its ceiling for direct foreign ownership in local telecom firms at the end of the year ahead of its entry into the World Trade Organization (WTO), it was reported yesterday.

The "transportation and communications ministry" has decided in principle to raise the ceiling on direct foreign investment in telecom ventures to 49 percent from the current 20 percent, according to the Commercial Times.

In the meantime, however, the cap for combined direct and indirect foreign ownership would remain at 60 percent, the paper added.

"To further ease foreign investments in Taiwan's telecom industry is essential and mandatory" in order to match up with the liberalization pace of other Asian regions, local officials were quoted as saying.

Telecom markets in Japan, Singapore, Australia, New Zealand and Hong Kong were already fully opened to foreign investors, while the Chinese mainland was committed to further liberalization after its expected WTO admission later this year, they said.

But the new rule does not apply to the Chunghwa Telecom Company, which would have its own set of rules designed by the "ministry", they added.

The "transportation ministry" controls more than 95 percent of Chunghwa, which was listed on the local stock market in October last year.

The ceiling change, pending revision of the telecom law expected by the end of the year, is designed to comply with Taiwan's WTO entry, they added.

(China Daily August 7, 2001)

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