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Foreign Investment in China's Telecom Industry: Where Is It heading?

Author: Hwai Lin Khor, Research Analyst, Wireless

Published: 18 Jan 2008

China has imposed the world’s tightest restrictions on foreign investment in telecommunications services, despite its demand for capital to build its telecommunications infrastructure. To finance the rapidly growing mobile market, the preferred model for China’s government is to set up branch companies of China Mobile and China Unicom in Hong Kong. The state holds majority share and the rest (around 25%) is listed on the stock markets of Hong Kong, New York, and London. Subsequently, these branches reinvest or take over mobile networks in China while operation is left to Chinese operators.

The full text of this Insight is available to subscribers of the Mobile Operator Strategies Research Service and the Mobile Networks Research Service.

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