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China's Regulatory StateA New Strategy for Globalization$
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Roselyn Hsueh

Print publication date: 2011

Print ISBN-13: 9780801449956

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9780801449956.001.0001

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Consolidating Central Control of Telecommunications in the Pre-WTO Era

Consolidating Central Control of Telecommunications in the Pre-WTO Era

(p.61) 4 Consolidating Central Control of Telecommunications in the Pre-WTO Era
China's Regulatory State

Roselyn Hsueh

Cornell University Press

This chapter examines China's regulation of telecommunications in the pre-WTO era. Between 1993 and 1998, to modernize the telecommunications infrastructure and create competitive carriers, the State Council did not enforce the official policy prohibiting foreign direct investment (FDI) in basic services. Rather, provincial subsidiaries of the state-owned carriers courted FDI to construct new generation networks. The laissez-faire climate did not last long. In 1998, the State Council created the Ministry of Information Industry to consolidate state control of service and equipment subsectors. This enabled the state to proficiently and decisively intervene when government control of new entrants outside the traditional telecommunications hierarchy, preparation of state-owned carriers for international listing, and management of network development became state imperatives directly before WTO accession.

Keywords:   state control, telecommunications industry, industry regulation, liberalization, WTO accession, World Trade Organization

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