China to open up to foreign ownership in telecom services


Chinese state-owned news agency on Wednesday announced that China will be opening up some telecom and internet services to foreign ownership.
Full foreign ownership will be made permissible in China in five areas of telecom and internet, including call centres and home internet access. While firms related to online data and analysis services will have a cap of 55 percent foreign ownership.
The news agency added that foreign companies willing to invest in these sectors will be required to base their infrastructure in the Shanghai free trade zone.
With the exception of firms offering home internet access, overseas firms will be allowed to offer the services across China.
Firms offering home internet access will be allowed to cater to consumers within the free trade zone only.
In September 2013, the Shanghai free trade zone was launched as an effort by China to open up parts of the economy to international market.
Chinese policymakers have been making attempts to revamp economic growth in the country as earlier this week, the government announce to allow foreign firms to make video games consoles within the free trade zone and sell them in China. But the consoles will have to be inspected by cultural departments before being sold.