China will not allow foreign investors to operate telecommunications networks despite it being an important factor for its entry into the World Trade Organisation (WTO), a former vice-minister of the Ministry of Posts and Telecommunications says. 'We will not open the operation of telecommunications network [to foreign investors] for a considerably long time,' Xie Gaojue said. 'Even if it is a condition to enter the WTO, we cannot agree because it is unreasonable.' He said it was impossible for developing countries to enter the telecommunications markets of developed countries as the networks were well established in the latter. It was therefore unfair to require developing countries to open their markets to developed countries, he said. Meanwhile, the president of the China Posts and Telecommunications Industry Corp (PTIC), Zhang Qingzhong , said the company had no plans to list more subsidiaries. It has two listed subsidiaries: H-share Chengdu Cable and B-share Shanghai Posts and Telecommunications. The company's mobile phone production arm, Eastern Communications Co, will issue B shares in Shanghai next month. PTIC's deputy managing director, Zeng Yu , said the company preferred to inject more assets into Eastern Communications instead of spinning off more subsidiaries. Mr Zhang said it was inevitable to have competition between PTIC's subsidiaries, especially between the joint ventures with Erissons and Motorola, which produced cellular mobile phones. Cellular phones using the brand name of Motorola had taken up at least half of the China market, Mr Zhang said. He said China would not produce mobile phones using local brand names because of the underdeveloped production technology. PTIC spent 3 per cent of its turnover in research each year. Despite the huge demand to develop telecommunications networks in China, Mr Xie said funding was not difficult as set-up charges of telephone lines and depreciation charges had contributed 70 per cent of the capital required for new networks. Other countries were also generous in giving low-interest loans for China's telecommunications networks as they wanted to sell their telecommunications products to the mainland, Mr Xie said.
