Exhibit 4.59
   DATED January 23, 2011
 CHINA UNICOM (HONG KONG) LIMITED
  TELEFÓNICA S.A.
 AGREEMENT TO ENHANCE THE
STRATEGIC ALLIANCE




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CONTENTS
 Clause
    
    Page1. Interpretation
    
    
    12. Enhancement of Strategic Alliance
    
    
    33. Acquisition of China Unicom Ordinary Shares by Telefónica
    
    
    44. Acquisition of Treasury Shares in Telefónica by China Unicom
    
    
    45. Deliverables by the Parties
    
    
    46. Warranties
    
    
    57. Commitment to appoint China Unicom Nominee Director to the Telefónica Board
    
    
    58. Announcements
    
    
    69. General
    
    
    610. Notices
    
    
    711. Governing Law and Dispute Resolution
    
    
    812. Counterparts
    
    
    9
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THIS
AGREEMENT January 23,
 BETWEEN:
 (1)
    
    CHINA UNICOM (HONG KONG) LIMITED, a company incorporated in Hong Kong and having its
registered office at 75th Floor, The Center, 99 Queens Road Central, Hong Kong (China
Unicom); and
 (2)
    
    TELEFÓNICA, S.A., a company incorporated in Spain, whose registered office is at Gran Via 28,
28013 Madrid, Spain (Telefónica).
 WHEREAS:
 (A)
    
    China Unicom is a leading company in the global telecommunications providing full service
telecommunications services in the Peoples Republic of China (the PRC) and is listed on the
New York Stock Exchange and the Hong Kong Stock Exchange. Through its Affiliates, China
Unicom is engaged in GSM and WCDMA cellular business in 31 provinces, autonomous regions and
municipalities in the PRC, the provision of international and domestic long distance calls,
domestic telephone services, Internet services, data communications, and other related
value-added telecommunications services. China Unicom has also established business
organisations engaging in related international businesses in Hong Kong, the United States,
Japan and Europe.
 (B)
    
    Telefónica is a leading integrated telecommunications company providing fixed and mobile
services with presence in 25 countries and is listed on the Spanish Stock Exchange, the New
York Stock Exchange, the London Stock Exchange, the Tokyo Stock Exchange, the Buenos Aires
Stock Exchange, the Sao Paulo Stock Exchange and the Lima Stock Exchange.
 (C)
    
    As at the date of this Agreement, Telefónica owns 1,972,315,708 shares in China Unicom,
representing approximately 8.37% of China Unicoms issued share capital.
 (D)
    
    As at the date of this Agreement, China Unicom owns 40,730,735 shares in Telefónica,
representing approximately 0.892% of Telefónicas issued share capital which China Unicom
acquired pursuant to the Subscription Agreement entered into by Telefónica and China Unicom on
6 September 2009.
 (E)
    
    On 6 September 2009 China Unicom and Telefónica entered into the Strategic Alliance Agreement
(the Strategic Alliance Agreement). The parties are satisfied with the development of their
strategic alliance and cooperation and desire to further enhance their strategic alliance and
cooperation through a further mutual investment in the shares of each other on the terms
provided herein.
 THE PARTIES AGREE
 1.
    
    INTERPRETATION1.1
    
    In this Agreement:
 Affiliate control
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Business Day
 China Unicom Acquisition
 China Unicom Board
 China Unicom Board Approval Date
 China Unicom Nominee Director
 China Unicom Ordinary Shares
 Date of Completion
 Dispute
 EUR 
 HK$
 Hong Kong
 Hong Kong Stock Exchange
 Listing Rules
 Notice
 Parties Party
 Spanish Stock Exchange Mercado Continuo
 Telefónica Acquisition
 Telefónica Board
 Telefónica Ordinary Shares
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Telefónica Price Per Share
 Telefónica Shares
 Telefónica Treasury Shares
 USD
 1.2
    
    In this Agreement, a reference to:
 1.2.1
    
    a person includes, without limitation, a reference to any individual, firm,
company, corporation or other body corporate, government, state or agency of a state or
any joint venture, association or partnership, trade union or employee representative
body (whether or not having a separate legal personality);
 1.2.2
    
    a Clause or Schedule, unless the context otherwise requires, is a
reference to a clause of, or a schedule to, this Agreement;
 1.2.3
    
    unless the context otherwise requires, the singular shall include the plural
and vice versa; and
 1.2.4
    
    any legal term under the laws of Hong Kong for any action, remedy, method of
judicial proceeding, legal document, legal status, court, official or any legal concept
or thing shall in respect of any jurisdiction other than Hong Kong be deemed to include
what most nearly approximates in that jurisdiction to the Hong Kong legal term and a
reference to any Hong Kong statute or ordinance shall be construed so as to include
equivalent or analogous laws of any other jurisdiction.
 1.3
    
    The headings in this Agreement do not affect its interpretation.2.
    
    ENHANCEMENT OF STRATEGIC ALLIANCE
 2.1
    
    Since signing of Strategic Alliance Agreement in September 2009, Telefónica and China Unicom
have made progress in the areas of cooperation, in particular, the procurement, expansion of
and service to MNCs, coordination and cooperation in international telecommunications
organisations, network design and optimization, joint management training.
 2.2
    
    By signing this Agreement, both Parties have agreed to enhance their Strategic Alliance, and
to deepen the cooperation in procurement, mobile service platforms, service to MNCs, wholesale
carriers, roaming, technology/R&D, international business development, cooperation and Sharing
of Best Practices.
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3.
    
    ACQUISITION OF CHINA UNICOM ORDINARY SHARES BY TELEFÓNICA3.1
    
    Telefónica shall, directly or through any of its Affiliates, purchase such number of China
Unicom Ordinary Shares for the aggregate consideration of USD 500,000,000, executed at such
price(s), at such time(s), in such manner and in such number of transaction(s) as Telefónica
may in its absolute discretion determine (the Telefónica Acquisition), provided that the
Telefónica Acquisition shall be completed within a nine-month period after the date hereof.4.
    
    ACQUISITION OF TREASURY SHARES IN TELEFÓNICA BY CHINA UNICOM
 4.1
    
    China Unicom shall acquire from Telefónica, and Telefónica shall sell to China Unicom,
21,827,499 Telefónica Treasury Shares, free and clear of all encumbrances and executed in one
transaction (the China Unicom Acquisition).
 4.2
    
    Completion of the China Unicom Acquisition shall take place as soon as practicable after the
date hereof, on the date agreed by the Parties but in any event no later than on 27 January
2011 (the Date of Completion or T). Before 16:00 (Madrid time) of the Date of Completion,
China Unicom and Telefónica shall deliver a joint instruction to Banco Bilbao Vizcaya
Argentaria, S.A., along with an executed copy of this Agreement, instructing Banco Bilbao
Vizcaya Argentaria, S.A. as member of the Spanish Stock Exchanges to communicate the sale on
behalf of Telefónica and the acquisition on behalf of China Unicom of the number of Telefónica
Treasury Shares stipulated in Clause 4.1 above to the Spanish Stock Exchanges. On the Date
of Completion, China Unicom shall irrevocably instruct Iberclear participant acting on its
behalf to accept the settlement of the purchase and sale of the Telefónica Treasury Shares
communicated to the Spanish Stock Exchanges by Banco Bilbao Vizcaya Argentaria, S.A., on
behalf of Telefónica. Settlement of the purchase and sale of the Telefónica Treasury Shares
shall occur in accordance with market practice three settlement business days (T+3) after it
has been communicated to the Spanish Stock Exchanges and through Iberclear. Telefónica shall
make available to Banco Bilbao Vizcaya Argentaria, S.A. the Telefónica Treasury Shares. China
Unicom shall make available to the Iberclear participant acting on its behalf the funds in the
amount of EUR 374,559,882.84, which corresponds to the number of Telefónica Treasury Shares to
be sold by Telefónica to China Unicom, multiplied by the Telefónica Price Per Share (the
Aggregate Purchase Price). In the event that any administrative approval is required in
order to proceed with the closing of the China Unicom Acquisition, if such approval is not
obtained, both Parties will agree in good faith alternative procedures and timing to effect
completion of the China Unicom Acquisition.5.
    
    DELIVERABLES BY THE PARTIES5.1
    
    At the Date of Completion:
 5.1.1
    
    Telefónica shall deliver to China Unicom:
 (a)
    
    a written confirmation duly signed by the Secretary of the
Telefónica Board certifying that all statements contained in Schedule 1 are
true and accurate in all respects as at the date of this Agreement and as at
the Date of Completion; and
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(b)
    
    a copy (certified as true copy by the secretary of the
Telefónica Board) of the resolutions of the Telefónica Board approving the
Telefónica Acquisition, the China Unicom Acquisition, the execution by
Telefónica of this Agreement and performance of all of its obligations
contemplated hereunder;
 5.1.2
    
    China Unicom shall deliver to Telefónica:
 (a)
    
    a written confirmation duly signed by a director of China
Unicom certifying that all statements contained in Schedule 2 are true and
accurate in all respects as at the date of this Agreement and as at the Date of
Completion; and
 (b)
    
    a copy (certified as true copy by an officer of China Unicom)
of the resolutions of the China Unicom Board approving the China Unicom
Acquisition and execution by China Unicom of this Agreement and performance of
all of its obligations contemplated hereunder, including acknowledgement of the
Telefónica Acquisition.
 6.
    
    WARRANTIES
 6.1
    
    As at the date of this Agreement, Telefónica warrants to China Unicom that each warranty set
out in Schedule 1 is true, accurate, complete and not misleading. Likewise, on the Date of
Completion, Telefónica is deemed to warrant to China Unicom that each of the warranties set
out in Schedule 1 is true, accurate, complete and not misleading by reference to the facts and
circumstances as at the Date of Completion. For this purpose only, where there is an express
or implied reference in any of these warranties to the date of this Agreement, that
reference is to be construed as a reference to the Date of Completion.
 6.2
    
    As at the date of this Agreement, China Unicom warrants to Telefónica that each warranty set
out in Schedule 2 is true, accurate, complete and not misleading. Likewise, on the Date of
Completion, China Unicom is deemed to warrant to Telefónica that each of the warranties set
out in Schedule 2 is true, accurate, complete and not misleading by reference to the facts and
circumstances as at the Date of Completion. For this purpose only, where there is an express
or implied reference in any of these warranties to the date of this Agreement, that
reference is to be construed as a reference to the Date of Completion.7.
    
    COMMITMENT TO APPOINT CHINA UNICOM NOMINEE DIRECTOR TO THE TELEFÓNICA BOARD
 7.1
    
    To the extent not prohibited under the applicable laws and the by-laws of Telefónica,
Telefónica irrevocably and unconditionally undertakes to propose at the next general
shareholders meeting of Telefónica the appointment of an individual designated by China
Unicom as a new director of the Telefónica Board (the China Unicom Nominee Director).
 7.2
    
    Telefónicas obligation under Clause 7.1 above shall be subject to completion of the China
Unicom Acquisition and to China Unicom maintaining on the date of appointment of the China
Unicom Nominee Director the aggregate number of Telefónica Shares held (and acquired) by China
Unicom as a result of the China
Unicom Acquisition and the closing of the Subscription Agreement entered into by Telefónica
and China Unicom on 6 September 2009 (the Aggregate Participation).
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7.3
    
    China Unicom shall ensure that the China Unicom Nominee Director possesses the necessary
qualifications and experience to act as a director of Telefónica as required under applicable
rules and regulations, including the rules of the relevant stock exchanges to which Telefónica
is subject or submits, except for the requirement set forth in Telefónicas by-laws that
requires that new directors held, for more than three years prior to the appointment, a number
of shares of Telefónica representing a nominal value of at least EUR3,000; such requirement
shall be waived by the Telefónica Board in relation to the China Unicom Nominee Director prior
to the next general shareholders meeting of Telefónica. Telefónica undertakes that a copy
(certified as true copy by the secretary of the Telefónica Board) of the resolutions of the
Telefónica Board approving such waiver shall be delivered to China Unicom as soon as
practicable after such Telefónica Board meeting, and in any event, no later that the
appointment of China Unicom Nominee Director to the Telefónica Board.
 7.4
    
    Telefónica further undertakes that upon the expiry of the term of office of the China Unicom
Nominee Director and provided that China Unicom continues to maintain the Aggregate
Participation in Telefónica, the Telefónica Board shall evaluate to propose the appointment of
a China Unicom Nominee Director at any subsequent general shareholders meeting of Telefónica.
 8.
    
    ANNOUNCEMENTS
 8.1
    
    Subject to Clause 8.2, no announcement or communication concerning the transactions
contemplated by this Agreement shall be made or issued by either Party without the prior
written consent of the other Party.8.2
    
    Clause 8.1 does not apply to an announcement or communication:
 8.2.1
    
    previously consented to, which may be repeated by either Party provided that
the prevailing facts and circumstances in respect of the announcement or communication
previously consented to were not materially different; or
 8.2.2
    
    required by law, by a rule of a stock exchange or by a governmental authority
or other authority with relevant powers to which a Party is subject or submits, whether
or not the requirement has the force of law, provided that such announcement or
communication shall only be made after consultation with the other Party and after
taking into account the other Partys reasonable requirements as to its timing, content
and manner of making or despatch.
 9.
    
    GENERAL
 9.1
    
    The consummation of the Telefónica Acquisition and the China Unicom Acquisition contemplated
herein does not affect the validity and enforceability of the Subscription Agreement entered
into by Telefónica and China Unicom on 6 September 2009 and the Strategic Alliance Agreement,
both of which shall remain in full force and effect.
 9.2
    
    A variation of this Agreement is only valid if it is in writing and signed by or on behalf of
each Party.
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9.3
    
    The failure to exercise or delay in exercising a right or remedy provided by this Agreement
or by law does not impair or constitute a waiver of the right or remedy or an impairment of or
a waiver of other rights or remedies. No single or partial exercise of a right or remedy
provided by this Agreement or by law prevents further exercise of the right or remedy or the
exercise of another right or remedy.
 9.4
    
    Either Partys rights and remedies contained in this Agreement are cumulative and not
exclusive of any rights or remedies provided by law.
 9.5
    
    Except to the extent that they have been performed and except where this Agreement expressly
provides otherwise, the warranties, representations, obligations and undertakings contained in
this Agreement remain in force after completion of the China Unicom Acquisition and of the
Telefónica Acquisition.
 9.6
    
    The invalidity, illegality or unenforceability of any provision of this Agreement does not
affect the continuation in force of the remainder of this Agreement.
 9.7
    
    This Agreement shall be binding upon and enure to the benefit of each Party and its or any
subsequent successors.
 9.8
    
    Each Party agrees to take all such actions or procure that all such actions be taken as are
reasonable in order to implement the terms of this Agreement or any transaction, matter or
thing contemplated by this Agreement.
 9.9
    
    Each Party shall pay its own costs relating to the negotiation, preparation, execution and
performance by it of this Agreement and of each document referred to in it.
 9.10
    
    A Party shall, on reasonable request from the other Party, do and execute or cause to be done
and executed all such further acts, deeds, things and documents as may be necessary to give
effect to the terms of this Agreement.
 9.11
    
    Each Party may not, without the prior written consent of the other Party, assign, transfer,
declare a trust for the benefit of or in any other way alienate any of its obligations or
rights under this Agreement whether in whole or in part except that Telefónica or China
Unicom, as the case may be, may designate any of its subsidiaries to be the registered holder
of the China Unicom Ordinary Shares or the Telefónica Treasury Shares, as the case may be, to
be acquired as contemplated hereunder provided always that such Party shall remain fully
liable for all obligations, covenants and undertakings set out herein.
 10.
    
    NOTICES10.1
    
    A Notice under or in connection with this Agreement shall be:
 10.1.1
    
    in writing and in English; and
 10.1.2
    
    delivered personally, sent by fax with confirmation receipt followed by mail posted
within 24 hours or sent by courier to the Party due to receive the Notice at the
address referred to in Clause 10.2 or such other address as a Party may specify by
notice in writing to the other Party received before the Notice was despatched.
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10.2
    
    For the purposes of this Clause 10.2, a Notice shall be sent to the addresses and for the
attention of those persons set out below:
 10.2.1
    
    in the case of China Unicom:
 Address:
    
    21 Jin Rong Street, Xicheng District, Beijing 100140, PRCFax Number:
    
    +8610 6625 9544Attention:
    
    Wang Xia
 10.2.2
    
    in the case of Telefónica:
 Address:
    
    Gran Via 28, 28013 Madrid, SpainFax Number:
    
    +34 91 727 1405Attention:
    
    Ramiro Sánchez de Lerín García-OviesGroup General Counsel
  10.3
    
    Unless there is evidence that it was received earlier, a Notice is deemed given if:
 10.3.1
    
    delivered personally, when left at the address referred to in Clause 10.1; or10.3.2
    
    sent by courier, five (5) Business Days after posting it; or
 10.3.3
    
    sent by fax, when confirmation of its transmission has been recorded on the senders
fax machine.
 11.
    
    GOVERNING LAW AND DISPUTE RESOLUTION
 11.1
    
    This Agreement is governed by and shall be construed in accordance with the laws of Hong
Kong.
 11.2
    
    Any dispute, controversy or claim arising from, out of or in connection with this Agreement,
including any question regarding its existence, validity, interpretation, breach or
termination (a Dispute) shall be determined in accordance with this Clause 11.
 11.3
    
    Any Dispute shall be referred to and finally resolved by arbitration under the UNCITRAL
Arbitration Rules (the Rules) which Rules are deemed to be incorporated by reference into
this Clause and as may be amended by the rest of this Clause.
 11.4
    
    The seat of arbitration shall be Hong Kong and the appointing authority shall be the Hong
Kong International Arbitration Centre (the HKIAC). The language to be used in the
arbitration proceedings shall be English.
 11.5
    
    The arbitration tribunal shall consist of three arbitrators, one of whom shall be appointed
by Telefónica, the other of whom shall be appointed by China Unicom and the third presiding
arbitrator shall be appointed by China Unicom and Telefónica jointly, or failing agreement
between the Parties within twenty (20) Business Days, by the HKIAC.
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11.6
    
    No person shall be nominated or appointed as an arbitrator under Clause 11.5 unless that
person has substantial experience in the conduct of commercial disputes and is fluent in
English.
 11.7
    
    The arbitration award shall be final and binding on the Parties from the day it is made and
the Parties agree to be bound thereby and to act accordingly.
 11.8
    
    Judgment upon any award rendered by the arbitral tribunal may be entered in, and application
for judicial confirmation, recognition or enforcement of the award may be made by or in, any
court of competent jurisdiction, and each Party irrevocably submits to the jurisdiction of
such court for the purposes of this Clause 11 and for the confirmation, recognition or
enforcement of any award rendered by the arbitral tribunal, whether in accordance with the
United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958
or otherwise.
 12.
    
    COUNTERPARTS
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EXECUTED
 SIGNEDby
    
    )for and on behalf of
    
    ) /s/ Chang XiaobingCHINA UNICOM (HONG KONG) LIMITED
    
    )SIGNEDby
    
    )for and on behalf of
    
    ) /s/ Cesareo Alierta IzuelTELEFÓNICA S.A.
    
    )
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SCHEDULE 1
 TELEFÓNICA WARRANTIES
 1.
    
    CAPACITY AND AUTHORITY
 1.1
    
    Telefónica has full corporate power, authority and capacity, has taken all actions necessary,
to enter into, execute, deliver, exercise its rights and perform its obligations under this
Agreement and to carry out the transactions contemplated hereby.
 1.2
    
    No action or thing is required to be taken, fulfilled or done and no approvals, filings or
notifications are required for Telefónica to enter into, execute, deliver, exercise its rights
and perform its obligations under this Agreement, or in relation to the Telefónica
Acquisition, the China Unicom Acquisition, or the carrying out of the other transactions
contemplated by this Agreement, as the case may be, except for the public disclosure regarding
the execution of this Agreement, the Telefónica Acquisition and/or the China Unicom
Acquisition, as required under the securities regulations of Spain or any other relevant
jurisdictions.
 1.3
    
    Telefónicas obligations under this Agreement and each document to be executed at or before
the Completion of the China Unicom Acquisition constitutes, or when the relevant document is
executed will constitute, valid, legal and binding obligations of Telefónica enforceable in
accordance with their respective terms.2.
    
    SHARES
 2.1
    
    Telefónica has full title to the Telefónica Treasury Shares and has existing authority to
transfer the Telefónica Treasury Shares to China Unicom in accordance with the terms of this
Agreement.
 2.2
    
    The Telefónica Treasury Shares will be transferred pursuant to this Agreement free and clear
from all encumbrances and will rank pari passuin all respects with the existing Telefónica
Ordinary Shares, together with all rights and entitlements accruing after the date of the
China Unicom Acquisition and the right to receive all dividends or other distributions
declared, paid or made or proposed to be made on such Telefónica Shares after the date of the
China Unicom Acquisition.
 2.3
    
    The transfer of the Telefónica Treasury Shares to China Unicom in accordance with the terms
of this Agreement will comply with all statutory requirements and all relevant laws of Spain,
and with the rules and regulations of the Spanish Stock Exchange, including all applicable
disclosure requirements in respect of share transfers.
 2.4
    
    The transfer of the Telefónica Treasury Shares pursuant to this Agreement will not cause any
breach of any agreement to which Telefónica and/or any of its subsidiaries is a party or by
which it is or any of them is bound and will not infringe or exceed any limits on, powers of,
or restrictions on or the terms of any contract, obligation or commitment whatsoever of,
Telefónica and/or any of its subsidiaries.
 2.5
    
    The transfer of the Telefónica Treasury Shares will not be subject to any pre-emptive or
similar rights or restrictions on voting and transfers.
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3.
    
    EFFECT OF AGREEMENT AND SUBSCRIPTION
  3.1
    
    constitute or give rise to a breach of or default under: (a) any law, rule, regulation,
judgment, order, authorisation or decree of any government, governmental or regulatory body,
arbitrator, administrative agency or court, domestic or foreign, having jurisdiction over
Telefónica or its properties or assets; or (b) the constitutional documents of Telefónica; or
 3.2
    
    give rise to any rights of any third party in respect of any assets of Telefónica.
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SCHEDULE 2
 CHINA UNICOM WARRANTIES
 1.
    
    CAPACITY AND AUTHORITY
 1.1
    
    China Unicom has full corporate power, authority and capacity, and has taken all actions
necessary, to enter into, execute, deliver, exercise its rights and perform its obligations
under this Agreement and to carry out the transactions contemplated hereby.
 1.2
    
    No action or thing is required to be taken, fulfilled or done and no approvals, filings or
notifications are required for China Unicom to enter into, execute, deliver, exercise its
rights and perform its obligations under this Agreement, or in relation to the China Unicom
Acquisition or the carrying out of the other transactions contemplated by this Agreement, as
the case may be, except for the public disclosure regarding the execution of this Agreement
and the acquisition of the Telefónica Treasury Shares as required under the Listing Rules.
 1.3
    
    China Unicoms obligations under this Agreement and each document to be executed at or before
the completion of the China Unicom Acquisition constitutes, or when the relevant document is
executed will constitute, valid, legal and binding obligations of China Unicom enforceable in
accordance with their respective terms.
 2.
    
    EFFECT OF AGREEMENT AND SUBSCRIPTION
  2.1
    
    constitute or give rise to a breach of or default under: (a) any law, rule, regulation,
judgment, order, authorisation or decree of any government, governmental or regulatory body,
arbitrator, administrative agency or court, domestic or foreign, having jurisdiction over
China Unicom or any of its properties or assets; or (b) the constitutional documents of China
Unicom; or
 2.2
    
    give rise to any rights of any third party in respect of any assets of China Unicom.
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