Not Welcome Here: China toughens stand against Net foreigners

Internet companies and investors who have already invested in China could get their financial fingers burnt to a smouldering stump if communist administrators carry out a threat to block foreign investment. A senior telco official with the Ministry of Information Industry, Zhang Cunjiang, told English language publication China Daily that it is looking to block all future foreign investment in the country's emerging Net market. It is also considering a move which could make such legislation retrospective, threatening the investment already in place from companies such as AOL and Lycos. "We cannot ignore the disordered situation in the current Internet financing market, which is dominated by foreign investors," Zhang Cunjiang said. "Those already invested here must bear full responsibility for losses caused by clashes with government policies," he said. Only last month information industry minister, Wu Jichuan, said that investment in the Internet by foreign companies was illegal under Chinese law. ®