Concessions by the mainland in one of its most closely guarded markets will see foreign investors taking controlling stakes in the mainland's telecommunications sector and also open the door for investments in the Internet sector.
The mainland is to allow up to 50 per cent foreign ownership and control in its telecoms and Internet markets sooner than previously agreed.
Once the mainland has completed entry into the World Trade Organisation, foreign companies will be allowed to take a 49 per cent stake in mainland telecoms ventures rising to 50 per cent after two years, said US Trade Representative Charlene Barshefsky.
'Foreign control is possible in a 50-50 joint venture,' she said.
Foreign companies would have 'full investment rights' in the mainland's rapidly growing Internet market, an area off-limits until now.
Foreign investors have pumped at least US$200 million into mainland Internet companies, but the industry has been jolted by recent announcements by government officials who said such investments were barred.
Details have not yet been announced on the allowed foreign ownership in each telecoms sector, but Beijing appeared to have softened its previous stance, agreeing to a more advanced timetable for liberalisation than negotiated in April.