The future of PCCW's Unihub Global Network joint venture is being questioned after its mainland partner sought to distance himself on having his identity exposed.
Winston Wen, the son of soon-to-be premier Wen Jiabao, was revealed in the Chinese media to be involved in information technology company Unihub.
PCCW admitted it had a 75 per cent stake in the company, although it never disclosed this in any public document.
According to sources in Beijing familiar with the joint venture, Mr Wen hoped to delay other aspects of the business after his stake in the company was exposed.
Telecommunications regulations in China only permit foreign companies to take up to 50 per cent in a joint venture.
The mainland telecommunications watchdog, the Ministry of Information Industry, was believed to have made inquiries as to why Unihub had allowed a major foreign shareholder to take such a large stake, sources said.
