The outlines of China's broader business climate continue to be mirrored in the development of its telecommunications sector. Modernization has been quick, and the potential of China's market of 1.2 billion people beckons. But bureaucratic turf wars, a poor service infrastructure and wariness of foreign participation have begun to dampen the enthusiasm of some top foreign players. According to China's official projections, every urban home will have telephone service by 2000. Subscribers are expected to number 123 million, up from 60 million today.
China is typical of newly opening markets.
BellSouth China operates one venture providing engineering service and another managing the internal network for the Portman Center, a commercial complex in Shanghai. Obviously, we would not still be here if we didn't think the potential justified it,'' he said. Indeed, the fact that a foreign service provider could even enter into negotiations reflects significant progress. Until recently, all service was the exclusive domain of China's Ministry of Posts and Telecommunications, which is forbidden from accepting any foreign investment. Then, in 1994, China's top government body, the State Council, authorized the establishment of a competitor, China Unicom.