PRESSURE is mounting on China to scrap its ban on foreign investment in the telecommunications industry as provinces and cities clamour for money to develop telephone systems, say analysts.
Opinions are divided on how quickly Beijing will open up the industry to foreign companies, but some analysts said an end to the ban could be less than six months away.
Yesterday, Shanghai officials said they wanted foreign investors to operate part of the city's communications network.
''We would like to designate a place to experiment with more international participation in the telephone network,'' said mayor Huang Ju during a visit to New York.
Telecommunications analysts in Hong Kong said the Shanghai plan might be a key turning point in the argument over whether China should allow foreign investment in its telecommunications industry.
''This is extremely important, this is the first big crack in the wall preventing foreign investment,'' said Andrew Harrington, regional telecommunications analyst with Salomon Brothers in Hong Kong.