Feeds

China mulls Net investment barriers

It's the Great Leap Backward, claims WSJ

  • alert
  • submit to reddit

The next step in data security

Beijing has started debating measures that threaten to hinder foreign investment in its budding online economy.

Two draft laws have been put forward that may restrict who is able to operate in China's Internet sector. The first is a general telecommunications law - in its current form it states that anyone wanting to operate "Internet and multimedia network services" would first need a licence from authorities under the State Council, China's cabinet.

The second governs foreign investment. Any joint venture between Chinese and non-Chinese telecom companies will need to get the nod from two government bodies - the Ministry of Information Industries and The Ministry of Foreign Trade and Economic Cooperation.

Both laws put up obstacles to e-business - and could make some existing operations illegal, today's Wall Street Journal reports. They also use vague terms that will not do much to bolster investor confidence overseas claims the paper. On the other hand, the measures will do much to benefit China's home grown Internet operations.

Separate proposals would force foreign investors to have annual sales of at least $10 billion over the last two years. According to today's article, this would rule out almost every company currently working in the sector. The Chinese subsidiary involved in the deal would need sales of $360 million per year and a telecomms permit.

The Chinese government, not known for tolerance of dissidents, would also have the power to fine anyone not abiding by the rules - either $24,000 or three times the "profit illegally obtained". ®

Related Stories

China and the running dog lackeys of Net democracy
Chinese government shuts down dissident site
Chinese cybercafes dubbed 'electronic heroin'
China shuts down Internet cafes

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.