Several issues to invest in telecommunication industry

Several issues for foreign investors to invest in telecommunication industry

外商投资电信企业的几个问题

Foreign investment in telecommunication means investment made by foreign investors in the enterprises of telecommunications in the People’s Republic of China.

There is a different minimum amount of investment requirement ranging from one billions RMB yuan and 100 million yuan depending on the scope of business of the telecommunication nationally or regionally and the stakes that the foreign investor hold in an enterprise shall not extend to over 49% maximum which also means that the foreign investor can only invest in the telecommunication industry through the form of joint venture with the Chinese enterprises.

The main foreign investor shall be qualified in the following conditions to participate the basic telecommunication industry.

1.With legal person status

2.Business license in basic telecommunication industry in the country it was registered;

3.With the capitals and professionals corresponding with the business.

The main foreign investor means the maximum investor among all the foreign investors and its total investment covers more than 30% of the total amount of foreign investment.