The Ministry of Information Industry (MII) yesterday reaffirmed a ban on foreign investment in the Internet.
Zhang Chunjiang, a MII official, was speaking at a news conference to announce details of the Fourth International Electronic Commerce Summit at Beijing's international convention centre from April 6-8 next year.
Foreign companies were stunned last month by MII Minister Wu Jichuan, who said foreign investment in the Internet, including Internet service and content providers (ISPs and ICPs), was banned.
But at least three foreign-funded ventures in the Internet including the venture by Yahoo! have since been announced and MII officials said new regulations would come out this year to make the market 'more open and more standardised'.
Asked to clarify the situation, Mr Zhang said Minister Wu had made the position abundantly clear.
'Our government has never agreed to allow foreign investment in . . . telecommunications services, including Internet ISPs and ICPs,' Mr Zhang said.
'The question of those foreign investors who have already entered the ISP and ICP markets will be solved through consultations in line with the relevant regulations. The consequence of those improper investments will be the responsibility of those who broke the regulations.' He said this did not mean the mainland's market was not open, with the issue being discussed as part of its negotiations to join the World Trade Organisation.