WRITTEN QUESTION E-3385/00

by Piia-Noora Kauppi (PPE-DE) to the Commission

(3 November 2000)

Subject: Opportunities for internet companies in the People's Republic of China

According to press reports the Chinese government has issued, within the space of a week, forty new regulations concerning Internet companies operating in China. The new regulations limit foreign investments and also require detailed filtering for subversive material. The regulations threaten to close down any firm which does not possess the licence required in the country.

According to the Chinese official news agency Xinhuan, Internet service providers are required to retain information about the material they provide, and about all their customers, for 60 days. If necessary this information must be sent to the Chinese authorities.

Business operators have 60 days to send private data about their activities to the Chinese ministry of information in order to obtain an operating licence. Firms without such a licence will be fined or closed down altogether.

1. How does the Commission of the European Communities propose to act to protect the human rights of Chinese citizens, and in particular the freedom to transmit information?

2. The Chinese government is threatening to close down all Internet service providers which do not have the above-mentioned licence. Does the Commission consider that this provision jeopardises the business activities in China of operators from EU Member States?

3. How does the Commission propose to take account of these new Chinese regulations in its WTO negotiations with China?

Answer given by Mr Patten on behalf of the Commission

(8 December 2000)

The Commission is aware of China's recent introduction of new regulations governing the operations of Internet companies within China and shares some of the concerns expressed by the Honourable Member.

The Commission will monitor the implementation of the new regulations. Any infringements of human rights that come to light particularly with regard to the publication of news items could be raised, as appropriate, in the framework of the EU-China human rights dialogue.

The rules appear to place a large responsibility on some internet-related operators to monitor either the behaviour of their customers or the legality of the content that they may be hosting. It remains to be seen how the cost of such monitoring will be met. The Commission will in any event check that the new regulations are carried out in an objective and transparent manner, so that they do not discriminate against Community operators.

The World Trade Organisation (WTO) negotiations have led China to commit itself to open its market progressively for all telecommunications services. With regard to internet access or hosting services for example, their supply by joint ventures partly held by foreign operators should be possible immediately upon accession in a number of areas, with a limit upon the foreign participation in the joint venture. There will be no limit on the areas and foreign participation will be allowed up to 50 %, two years after China's WTO entry.

The Commission will, together with other partners, endeavour to ensure that China adheres to its WTO commitments in all areas.