<PAGE>

                                                                    EXHIBIT 10.1

                                  JUNE 29, 2004

                 CHINA NETWORK COMMUNICATIONS GROUP CORPORATION

                       CHINA NETCOM HOLDINGS (BVI) LIMITED

               CHINA NETCOM GROUP CORPORATION (HONG KONG) LIMITED

                        CHINA NETCOM CORPORATION LIMITED

                            ASSET INJECTION AGREEMENT

<PAGE>

<TABLE>
<S>                                                                                                    <C>
1.   Injected Assets...........................................................................        3

2    Netcom Group injecting assets to Netcom BVI...............................................        3

3    Netcom BVI injecting assets to Netcom Hong Kong...........................................        3

4    Netcom Hong Kong injecting assets to Netcom Limited.......................................        4

5    Representations, Warranties and Undertakings..............................................        5

6    Condition Precedent and Effective date....................................................        5

7    Indemnities...............................................................................        6

8    Confidentiality...........................................................................        6

9    Non Waiver................................................................................        6

10   Noticies..................................................................................        7

11  Counterparts...............................................................................        7

12  Governing law and dispute resolution.......................................................        7

13  Miscellaneous .............................................................................        7
</TABLE>

                                       1
<PAGE>

                            ASSET INJECTION AGREEMENT

This Asset Injection Agreement ("Agreement") was made by the following parties
in Beijing, the People's Republic of China ("PRC") on June 29, 2004:

PARTY A: CHINA NETWORK COMMUNICATIONS GROUP CORPORATION. ("NETCOM GROUP")

Registered address: No.156, Fuxingmennei Avenue, Xicheng District, Beijing, PRC

PARTY B: CHINA NETCOM HOLDINGS (BVI) LIMITED ("NETCOM BVI")

Registered Address: P.O. Box 3140 Wickhams Cay 1, Road Town, Tortola, British
Virgin Island

PARTY C: CHINA NETCOM GROUP CORPORATION (HONG KONG) LIMITED ("NETCOM HONG KONG")

Registered Address: 59/F Bank of China Tower, 1 Garden Road, Hong Kong

PARTY D: CHINA NETCOM COMPANY LIMITED ("NETCOM LTD")

Registered address: 1 Beihuandong Road, Beijing Economic & Technology
Development Zone, Beijing, PRC

WHEREAS:

A.    According to the Restructuring and listing plan of Netcom Group.
      ("RESTRUCTURING PLAN") approved by China's State Council, Netcom Group has
      conducted a series of restructuring activities regarding certain of its
      telecom assets and businesses in mainland China. After the restructuring,
      Netcom Hong Kong, indirectly held by Netcom Group, will act as the issuer
      to offer shares and American Depositary Shares in overseas markets, and
      will seek listing on The Stock Exchange of Hong Kong Limited and The New
      York Stock Exchange, Inc.

B.    In order to implement the Restructuring Plan, on April 20, 2004, Netcom
      Group entered into an equity transfer agreement with four state-owned
      shareholders of China Netcom (Holdings) Company Limited. ("NETCOM
      HOLDINGS") regarding the acquisition of all their respective entire equity
      interest in Netcom Holdings, namely, Chinese Academy of Sciences, China
      Railways Telecommunications Center, Information and Network Center of
      State Administration of Radio, Film and Television, and Shanghai Alliance
      Investment Limited. After the equity transfer agreement is approved by the
      relevant regulatory authorities of the Chinese government and after the
      transfer is completed, Netcom Group will become the sole shareholder of
      Netcom Holdings.

C.    Netcom Holdings will transfer all its Netcom BVI shares to Netcom Group.
      After the transfer is approved by the relevant authorities of the Chinese
      government and is completed, Netcom Group will become the sole shareholder
      of Netcom BVI.

                                       2
<PAGE>

D.    Netcom Hong Kong will implement similar equity restructuring measures. CNC
      Fund LLP, the shareholders of Netcom Hong Kong, will transfer all its
      equity interest to Netcom BVI, thus allowing Netcom BVI to own 100% equity
      interest in Netcom Hong Kong.

E.    With the completion of all the above-mentioned transfers, Netcom Group
      will own, indirectly through Netcom BVI and Netcom Hong Kong, all the
      equity interest in Netcom Limited.

F.    By signing a series of asset transfer agreements with relevant parties
      within the group, Netcom Group will own all the Injected Assets (as
      defined in Section 1 of this agreement) in China within the scope of the
      listing.

THEREFORE, all the parties, through friendly negotiations, agreed to the
following regarding asset injection:

1.    INJECTED ASSETS

      The Injected Assets mentioned in this Agreement refer to the telecom core
      business related assets and liabilities legally owned by Netcom Group in
      Beijing, Tianjin, Hebei, Liaoning, Henan, Shandong, Shanghai and
      Guangdong, as well as international telecom business related assets and
      liabilities legally owned by Netcom Group. The specific scope and details
      of the Injected Assets are all the assets and liabilities listed in the
      Assets Valuation Report regarding the above-mentioned Netcom Group assets
      and liabilities (attached hereto as Appendix I). This Report was prepared
      by Beijing Zhong Qi Hua Assets Evaluation Ltd. and approved by the
      State-owned Assets Supervision and Administration Conmission of the
      Chinese State Council, the reference date of which is December 31, 2001.

2.    NETCOM GROUP INJECTING ASSETS TO NETCOM BVI

      2.1   In consideration of the mutual commitments under this Agreement and
            the consideration payable by Netcom BVI to Netcom Group under clause
            2.2 of this Agreement, Netcom Group agrees to inject the Injected
            Assets owned by it to Netcom BVI, and Netcom BVI agrees to accept
            all the Injected Assets.

      2.2   The consideration of the Injected Assets injected by Netcom Group to
            Netcom BVI is the net asset value listed in the Asset Valuation
            Report approved by the State-owned Assets Supervision Administration
            Commission. Netcom BVI shall satisfy the consideration by way of
            capital investment. After the Injected Assets are injected, Netcom
            Group shall continue to own all the equity interest in Netcom BVI.

3.    NETCOM BVI INJECTING ASSETS TO NETCOM HONG KONG

      3.1   In consideration of the mutual commitments under this Agreement and
            the consideration

                                       3
<PAGE>

            payable by Netcom Hong Kong to Netcom BVI under clause 3.2 of this
            Agreement, Netcom BVI agrees to inject, immediately after receiving
            the Injected Assets injected by Netcom Group, all the said Injected
            Assets to Netcom Hong Kong, and Netcom Hong Kong agrees to accept
            all Injected Assets.

      3.2   The consideration of the Injected Assets injected by Netcom BVI to
            Netcom Hong Kong is the net asset value listed in the Asset
            Valuation Report approved by the State-owned Assets Supervision and
            Administration Commission. Netcom Hong Kong shall satisfy the
            consideration by way of issuing new ordinary shares. Netcom Hong
            Kong and Netcom BVI hereby agree that, the number of the
            above-mentioned newly issued ordinary shares shall be decided upon
            through consultation between them during the period when Netcom BVI
            owns 100% of Netcom Hong Kong.

      3.3   Netcom Hong Kong shall procure its board of directors to pass the
            following resolutions and implement the issuance of new shares in
            the said resolutions:

            3.3.1 Approve Netcom Hong Kong to issue new ordinary shares to
                  Netcom BVI by the number as stated in clause 3.2.

            3.3.2 Approve Netcom Hong Kong to register Netcom BVI on its
                  register of members in relation to the above mentioned new
                  shares, and issue Netcom Hong Kong's ordinary shares
                  certificate in Netcom BVI's name representing the amount of
                  shares as stated in clause 3.2.

      3.4   The asset injection pursuant to this clause shall be deemed to take
            place immediately upon the completion of the asset injection as
            mentioned in clause 2 of this Agreement.

4.    NETCOM HONG KONG INJECTING ASSETS TO NETCOM LIMITED

      4.1   In consideration of the mutual commitments under this Agreement and
            the consideration payable by Netcom Limited to Netcom Hong Kong
            under clause 4.2 of this Agreement, Netcom Hong Kong agrees to
            inject, immediately after receiving the Injected Assets injected
            from Netcom BVI, all said Injected Assets to Netcom Limited, and
            Netcom Limited agrees to accept all Injected Assets.

      4.2   The consideration of the Injected Assets injected by Netcom Hong
            Kong to Netcom Limited is the net asset value listed in the Asset
            Valuation Report approved by the State-owned Assets Supervision and
            Administration Commission. Netcom Limited shall satisfy this
            consideration by way of capital investment. After the asset
            injection, Netcom Hong Kong shall continue to own all the equity
            interest in Netcom Limited.

                                       4
<PAGE>

      4.3   The asset injection pursuant to this clause shall be deemed to take
            place immediately upon the completion of the asset injection
            mentioned in clause 3 of this Agreement and the procedure changing
            the business registration certificate from Netcom Limited to China
            Netcom Group Ltd.

5.    REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS

      5.1   Each party in this agreement represents, warrants and undertakes to
            each of the other parties respectively:

            5.1.1 It is an independent legal entity incorporated and validly
                  existing under the laws in its place of incorporation.

            5.1.2 It has the full legal rights, power and authority to sign this
                  Agreement and perform its obligations and responsibilities
                  under this Agreement.

            5.1.3 None of the provisions in this Agreement violates its articles
                  of association or applicable laws and regulations.

            5.1.4 The representative signing on this Agreement has been fully
                  authorized. This Agreement shall constitute legal, valid and
                  enforceable obligations on all parties upon its execution.

      5.2   According to applicable laws or any applicable restrictive
            agreements, Netcom Group has the obligation to inform any counter
            party or third party who should be informed about issues of the
            final asset injection to Netcom Limited that are related to
            sequential asset injections described in clauses 2, 3 and 4 of this
            Agreement, and should obtain the consent of any counter party or
            third party whose consent is required by applicable laws or
            applicable restrictive agreements.

6.    CONDITION PRECEDENT AND EFFECTIVE DATE

      6.1   Injected assets under this Agreement shall become effective when all
            conditions below are met:

            (i)   The Chinese Ministry of Commerce approves the asset injection
                  arrangement under this Agreement;

            (ii)  Full completion of equity transfers as described in the
                  recital of this Agreement.

      6.2   In order to implement the Restructuring Plan, all the parties in
            this Agreement specifically agree that when condition precedent
            stated in clause 6.1 are met, the effective date of the asset
            injection described in clauses 2, 3 and 4 of this Agreement shall be
            deemed to be December 31, 2003. Namely, the Injected Assets shall be
            deemed to be injected on December 31, 2003 from Netcom Group through
            Netcom BVI and Netcom Hong Kong and finally to Netcom Limited in

                                       5
<PAGE>

            the manner described in clause 2, 3 and 4.

7.    INDEMNITIES

      If any of the following incidents occurs, Netcom Group shall indemnify the
      other parties in this Agreement or Netcom Limited at any time completely,
      fully, timely, effectively and sufficiently .

      7.1   Due to Netcom Group's failure in fulfilling its obligations under
            clause 5.2 of this Agreement notifying third parties and obtaining
            their consent, any third party claims or disputes the Injected
            Assets, resulting in difficulty or impossibility in the sequential
            asset injection as described in this Agreement.

      7.2   Due to Netcom Group's breach of any agreed obligations in this
            Agreement, including but not limited to the representations,
            warranties and undertakings in clause 5, Netcom Limited is unable to
            actually hold, effectively control or operate the Injected Assets.
            If this situation arises, Netcom Limited shall receive complete and
            sufficient indemnities from Netcom Group.

      7.3   Due to any incident that occurs before the effective date of the
            asset injection as described in this Agreement, Netcom Limited
            encounters or suffers any right claim, accusation, legal
            investigation, claim for compensation, legal action, losses,
            damages, payment, charges or expenses, including but not limited to
            professional service charges or expenses that involve the Injected
            Assets.

      The indemnification obligations of Netcom Group in this clause are
      independent from any agreements between it and related parties, including
      the indemnification obligations in the restructuring agreement provisions.
      Any compensation paid by Netcom Group according to other agreements shall
      not be used to reduce its obligatory compensation under this agreement.

8.    CONFIDENTIALITY

      Unless otherwise provided by law or required by regulatory authorities, no
      party shall provide or disclose the content of this Agreement, any data
      and information relating to other parties' businesses to any companies,
      enterprises, organizations or individuals without prior written permission
      of the other parties (which permission shall not be denied or delayed
      without reason).

9.    NON-WAIVER

      Unless otherwise specified by law, the failure or delay of exercising the
      rights, powers or privileges as endowed by this Agreement on the part of
      any Party cannot be deemed as the waiver of such rights, power or
      privileges. Besides, the partial exercise of such rights, powers or
      privileges should not hinder the exercise of such rights, powers or
      privileges of this Party in the future.

                                       6
<PAGE>

10.   NOTICE

      All notices required to be delivered pursuant to this Agreement shall be
      in writing, and shall be delivered either by hand, facsimile or by mail.
      Any notice shall be deemed to have been delivered at the time of actual
      receipt if delivered by hand; at the time of transmission if delivered by
      facsimile; and on the fifth (5th) working day (excluding legal holidays)
      if delivered by mail. Notification will be in effect upon its delivery.

11.   COUNTERPARTS

      This Agreement can be signed on any number of copies. Each party can sign
      on separate copies. All copies are original copies and they constitute one
      document.

12.   GOVERNING LAW AND DISPUTE RESOLUTION

      12.1  This Agreement is governed, construed and enforced by laws in the
            People's Republic of China.

      12.2  In case of disputes as to the power, interpretation or
            implementation of this agreement, both parties shall seek to settle
            the matters of dispute by friendly negotiation. If the matters of
            dispute cannot be settled by negotiation within thirty (30) days
            from the day the matters of dispute arise, either party has the
            right to resort to litigation at the people's court which has
            jurisdiction over where Party A situates.

13.   MISCELLANEOUS

      13.1  This Agreement shall come into effect and be binding upon all
            parties hereto once signed by the legal representatives or
            authorized representatives of the Parties and affixed with their
            official seals

      13.2  Appendices to this Agreement are part of this Agreement and have the
            same validity as the Agreement itself. When the provisions in an
            appendix and the Agreement conflict with each other, the provisions
            in the appendix shall prevail.

      13.3  Through negotiation, each party may revise or amend this Agreement
            and its appendices. All revisions or amendments shall be signed by
            legal or authorized representatives from all parties before they
            become effective.

      13.4  This Agreement is severable, that is, if any provision of this
            Agreement or its appendices is held to be void, illegal or
            unenforceable at any time, the effectiveness and performance of
            other provisions of this Agreement shall not be affected.

                                       7
<PAGE>

(Signature page)

CHINA NETWORK COMMUNICATION GROUP CORPORATION.

Legal Representative (or Authorized Representative):

Zhang Chun Jiang

[official seal]

CHINA NETCOM HOLDINGS (BVI) LIMITED

Legal Representative (or Authorized Representative):

Tian Su Ning

CHINA NETCOM CORPORATION (HONG KONG) LIMITED

Legal Representative (or Authorized Representative):

Tian Su Ning

CHINA NETCOM CORPORATION LIMITED

Legal Representative (or Authorized Representative):

Tian Su Ning

[official seal]

                                       8