China encouraging private investments in telecom industry

Government outlines areas in telecommunications market where it aims to attract private capital, and proposes ways to open up the industry to more competition such as in data center management and Internet services.

To encourage more private investments in its telecommunications industry, the Chinese government has highlighted several key potential segments which it will focus on developing, and hopes to encourage more companies to venture overseas.

In a statement Thursday, the Ministry of Industry and Information Technology said it is encouraging the telecommunications industry to further open up to private capital. This is inline with the government's plans in 2010 encourage private investments in various industries, it noted.

By encouraging private investments, the government hopes to boost competition in the telecom industry as well as to to stop monopolistic and unfair competition, the ministry said.

As part of this effort, the government will make it easier for the private sector to get involved in businesses such as managing Internet data centers and acting as Internet service providers, said the ministry. Private businesses which fit the criteria are encouraged to apply for the setting up of telecom infrastructure as well, it noted.

Telecom companies were also encouraged to seek funding from local equity markets so more private shareholders can invest and to minimize the ratio of government investments, it added.

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