People's Republic of China promulgated by Decree No. 534

Published on amendments to the provisions on administration of foreign-funded telecommunication enterprises under the State Council's decision, as of the date of promulgation.

Prime Minister Wen Jiabao



The September 10, 2008

The State Council on amending the provisions on the administration of foreign-invested telecommunications enterprise decision

To meet the needs of opening up the telecommunications industry, promoting the development of China's telecommunications industry, the State Council decided to make the following changes in provisions on administration of foreign-funded telecommunication enterprises:

First, fourth, sixth, eighth, 11th, 13th, 15th, 17th to 21st in the "charge of the information industry Department under the State" is amended as "industry and information Department under the State Council."

Second, fifth article is revised as follows:

"Foreign-funded telecommunication enterprises registered capital shall comply with the following requirements:

"(A) operating in or across provinces, autonomous regions, municipalities directly under the scope of basic telecommunications services, the minimum registered capital is RMB 1 billion; operating value-added telecommunications business, its minimum registered capital is 10 million RMB; "(B) the operation of provinces, autonomous regions and municipalities within the scope of basic telecommunications services, the minimum registered capital of 100 million Yuan; operating value-added telecom service, the minimum registered capital is RMB 1 million Yuan.

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In the third, 11th, 14th, "project proposals" changed to "the project application report", by deleting the 11th and 13th in the "feasibility studies".

Four, by deleting article 12th.

Second paragraph of article five, delete the 14th.

Section six, 15th in the "Planning Department of the State Council, or the State Council approval of the Economic Management Department" amended to read "approved by the State Council development and reform".

Section seven, 16th, 19th, 20th, 21st in the "foreign economic and Trade Department" amended to "the commercial administrative department."

Eight, by deleting article 23rd.

According to the above amendments, the provisions of the order accordingly adjusted.

This decision shall come into force as of the date of.



The provisions on administration of foreign-funded telecommunication enterprises under this decision accordingly modified, republished.

Provisions on administration of foreign-funded telecommunication enterprises

(December 11, 2001 People's Republic of China promulgated by Decree No. 333, published on September 10, 2008, the Department of State to amend provisions on administration of foreign-invested telecommunications enterprise, the revision of the decision)

First in order to meet the needs of opening up the telecommunications industry, promoting the development of the telecommunications industry, according to the foreign investment law, administrative regulations and the People's Republic of China Telecommunications Ordinance (hereinafter referred to as the telecommunications regulations), these provisions are formulated.

The second foreign-invested telecommunications enterprise, refers to the foreign investor and Chinese investors in People's Republic of China territory according to law in the form of Sino-foreign joint venture, jointly invested by enterprises engaged in telecommunications business.

Third telecommunications enterprises with foreign investment engaging in telecommunications business activities must comply with this requirement, must also comply with the Telecommunication Ordinance and other relevant provisions of laws and administrative regulations.

Article fourth foreign-funded enterprises are allowed to operate Basic Telecom services, value-added telecommunications services, specific business categories in accordance with the provisions of the Telecommunications Ordinance.

The geographical scope of foreign-funded telecommunication enterprises do business, and by the Department of industry and information technology of the State Council in accordance with the relevant provisions.

Article fifth registered capital of foreign-invested telecommunications enterprise should comply with the following requirements:

(A) operating in or across provinces, autonomous regions, municipalities directly under the scope of basic telecommunications services, the minimum registered capital is RMB 1 billion; operating value-added telecommunications business, its minimum registered capital is 10 million RMB;

(B) management of provinces, autonomous regions and municipalities within the scope of basic telecommunications services, the minimum registered capital of 100 million Yuan; operating value-added telecom service, the minimum registered capital is RMB 1 million Yuan.

Article sixth of basic telecommunications services (except for wireless paging service) of foreign-funded telecommunication enterprises of the foreign investor's investment in the company, ultimately must not exceed 49%.

Operating value-added telecommunications services (including wireless paging service in basic telecommunications services) of foreign-funded telecommunication enterprises of the foreign investor's investment in the company, ultimately must not exceed 50%.

Foreign-invested telecommunications enterprise of Chinese investors and foreign investors in proportion to the amount of different dates shall be formulated by the competent Department of industry and information technology, in accordance with the relevant provisions.

Article seventh foreign-invested telecommunications enterprise telecom services, should adhere to the provisions of article fourth, fifth and sixth conditions provided for in article, and shall comply with the provisions of the Telecommunications Ordinance to operate basic telecommunications business or operating value-added telecommunications services shall meet the conditions.

Article eighth of basic telecommunications services by foreign-invested telecommunications enterprise of China major investor shall comply with the following conditions:

(A) is a legally established company;

(B) compatible with the operating funds and professionals;

(C) meet the requirements of industry and information technology departments of the State Council carefully and industry-specific requirements.

Said foreign-funded telecommunication enterprises of China in the preceding paragraph the main investor, refers to all Chinese investors financed amount up to and 30% of the Chinese investors as a whole the total registered capital of more than investors.

Nineth operating foreign-funded telecommunication enterprises of the basic telecommunications service of major foreign investors shall comply with the following conditions:

(A) have the status of enterprise legal persons;

(B) in the registration country or region based telecommunications business license;

(C) compatible with the operating funds and professionals;

(D) having the good performance in basic telecommunications services and operations experience.

Foreign-funded telecommunication enterprises referred to in the preceding paragraph's main foreign investors, refers to all foreign investors financed amount up to and 30% of the total registered capital of all foreign investors more than spenders.

Tenth operating value-added telecommunications business of foreign-funded telecommunication enterprises mainly foreign investors should have operating value-added telecommunications business of good performance and operational experience.

11th set up to operate basic telecommunications business or across provinces, autonomous regions and municipalities directly under the scope of value-added telecommunications services foreign-invested telecommunications enterprise, leading investors to the State Council by the Chinese side industry and information Department has submitted an application and submit the following documents:

(A) the project application report;

(B) the provisions of article eighth and Nineth, article tenth of the parties to the venture investor's qualifications or relevant documents;

(C) the provisions of the Telecommunications Ordinance to operate basic telecommunications business or value-added telecommunications services subject to the other conditions of proof or confirmation. The State Department of industry and information technology departments shall from the date of receipt of the application to review the documents relevant to the provisions of the preceding paragraph. Belongs to the basic telecommunications services shall, within 180 days of review has been completed, the decision to approve or not to approve belonging to value-added telecommunications services shall, within 90 days of this review has been completed, the decision to approve or not to approve.

Approving, issuing foreign investment in telecommunication business opinion on the examination; is not granted, it shall notify the applicant in writing and state the reasons.

12th foreign-invested telecommunications enterprise of provinces, autonomous regions and municipalities within the scope of value-added telecommunications services, major investors from the Chinese side to the provinces, autonomous regions and municipalities directly under the Telecommunication Authority submitted an application and submit the following documents:

(A) the provisions of article tenth of the qualifications or relevant documents;

(B) provisions of the Telecommunications Ordinance operating value-added telecommunications services subject to the other conditions of proof or confirmation. The provinces, autonomous regions, municipalities directly under the Telecommunications Authority shall be signed within 60 days from the date of receipt of the application.

Agreed, go under the Department of industry and information; do not agree, it shall notify the applicant in writing and state the reasons. Industry and information Department under the State Council shall be received from provinces, autonomous regions and municipalities directly under the management bodies for signed files within 30th of this review has been completed, the decision to approve or not to approve.

Approving, issuing foreign investment in telecommunication business opinion on the examination; is not granted, it shall notify the applicant in writing and state the reasons.

13th foreign-invested telecommunications enterprise project application report include: be established by the parties to the joint venture's name and basic information, business investment, registered capital, capital contribution, applying business type, duration, and so on. 14th the establishment of foreign-invested telecommunications enterprise, in accordance with the relevant provisions of the State, their investment projects need to be approved by the State Council development and reform Department, the State Department of industrial and information technology departments shall issue to the foreign investment in the telecommunications business before opinion on the examination, to transmit the applications development and reform Department under the State Council for approval.

Transfer approved by the State Council development and reform, the provisions set forth in 11th, 12th and approval can be extended to 30th. 15th article established foreign investment telecommunications enterprise, belongs to business based telecommunications business or across province, and autonomous regions, and municipalities range value-added telecommunications business of, by China main investors by foreign investment business telecommunications business validation submissions to state business competent sector submitted intends established foreign investment telecommunications enterprise of contract, and articles; belongs to business province, and autonomous regions, and municipalities range within value-added telecommunications business of, by China main investors by foreign investment business telecommunications business validation submissions to province, and autonomous regions, and

Municipality departments in charge of Commerce appointee to establish foreign-invested telecommunications enterprise contract and articles. Commercial administrative department under the State Council and provinces, autonomous regions and municipalities the commercial administrative department shall receive the submissions of the planned foreign-invested telecommunications enterprise contract and articles of association within 90 days from the date of this review has been completed, the decision to approve or not to approve.

Approval, the foreign invested Enterprise approval certificate issued; is not granted, it shall notify the applicant in writing and state the reasons.

16th foreign-invested telecommunications enterprise of China the main investor of the foreign-invested Enterprise approval certificate, to the State Department of industry and information technology authority under the telecommunications business license procedures.
Chinese major investors with foreign-invested telecommunications enterprise approval certificate for foreign-invested enterprises and the telecommunications business license and industrial and commercial administration authorities for foreign-invested telecommunications enterprise registration formalities.

Article 17th foreign-funded telecommunication enterprises engaged in cross-border telecommunications services shall be subject to approval of the industry and information technology Department of the State Council, and through the Department of State industry and information technology authorities approved the establishment of the International Bureau of telecommunications access.

18th article violation this provides sixth article provides of, by State industrial and information competent sector ordered deadline corrected, and at 100,000 yuan above 500,000 yuan following of fine; late not corrected of, by State industrial and information competent sector revoked telecommunications business business license, and by original issued foreign investment enterprise approved certificate of business competent sector revoked its foreign investment enterprise approved certificate.

19th article violation this provides 17th article provides of, by State industrial and information competent sector ordered deadline corrected, and at 200,000 yuan above 1 million Yuan following of fine; late not corrected of, by State industrial and information competent sector revoked telecommunications business business license, and by original issued foreign investment enterprise approved certificate of business competent sector revoked its foreign investment enterprise approved certificate.

20th article application established foreign investment telecommunications enterprise, provides false, and forged of qualification proved or confirmed file cheat approved of, approved invalid, by State industrial and information competent sector at 200,000 yuan above 1 million Yuan following of fine, revoked telecommunications business business license, and by original issued foreign investment enterprise approved certificate of business competent sector revoked its foreign investment enterprise approved certificate.

Article 21st foreign-invested telecommunications enterprise telecom services, violations of telecommunications regulations and other relevant laws and administrative regulations, the relevant authorities shall be subject to punishment.

22nd Hong Kong S.A.R., and Macau S.A.R. and Taiwan companies, corporate telecommunications business in the Mainland, these provisions shall apply mutatis mutandis. 23rd these provisions come into force on January 1, 2002.