This is Part II of a two-part series. To read Part 1, click here . The stakes are high because China is the world's most rapidly growing market for telecommunications services and products. It is already the largest market for pagers and mobile telephones. Foreign investment in the manufacturing of telecommunications equipment in China is already very significant and will further grow under the World Trade Organization.
China hopes to become an important export base for a wide range of such products.
Large U.S. and international manufacturing companies such as Motorola Inc., Ericsson, Nokia, Siemens AG, etc. are already heavily invested in China. Under the WTO, China will have to create a level playing field for all market operators, irrespective of ownership. Control and competition More important, however, is the opening of China's telecommunications and Internet service markets to foreign equity participation and competition. For example, BTA sets basic rules on access to existing networks and connection charges so as to promote healthy competition in the supply of telecommunications services. It requires the regulatory agency to be independent, which is not the case in China today where MII combines the roles of regulator and market participant, a bit like NTT in Japan.