Study On Legal System Of Admission And Establishment Of FDI In Telecommunication Services In China

Before China's entry to WTO in Dec, 2001, most people worried that lots of foreign investors would invest in domestic telecom services and threat greatly domestic firms after opening of telecom market. But it is different from what we anticipated. Telecom services have not attracted much investment. During recent years, only a limited number of foreign investors have applied for establishing new firms. At the same time many foreign investors avoid laws or even go against regulations. It is essential to study the causes from angel of legal system of admission and establishment of FDI in telecom services.This thesis has four chapters, approximately 36000 words,which are as follows:Chapter I gives general introduction of Legal system of FDI access in telecom services, and briefs the legal frames of FDI access in telecom services in various nations. Legal system of FDI access in telecom services is defined as all legal rules about admission and establishment of FDI in telecom services in one country. Generally speaking, legal system of FDI access consists of domestic rules, bilateral and multilateral agreements, and WTO rules on FDI rules on telecom services.Chapter II analyzes legal systems of FDI access in telecom services of Brazil, India and Russia, and summarizes the values to our nations. Brazil, India and Russia are similar with our country in some aspects, such as large population, great expansion,rapid development. The four nations were called BRICS by economists of Goldman Sachs. The legal systems of FDI access are fundamentally different among the three nations of Brazil, India and Russia. Brazilian adopts completely loose admission policy, Indian has tighter admission policy, while Russian system is with lots of limitations. The liberal system of Brazil and India have attracted flows of much FDI. For over liberalization of FDI policy, many key telecom firms of Brazil are controlled by foreign capital. For limitation of FDI policy, little FDI flowed to Russia. We can learn lessons from the legal systems of three nations.Chapter III analyzes the actual legal system of FDI access in telecom services in our country, and studies the deficiencies in the legal system. The legal system of FDI access of our country composes of three divisions, which are domestic laws and regulations about FDI,domestic telecom regulations, and bilateral and multilateral agreements on trade in services. There exists six sides of disadvantages in the legal system, which are as follows:a)flaws in the legal frame;b)problems on qualifications of foreign investors; c)problems in classification of telecom services; d)limitations on foreign equity in joint ventures; e)insufficient independence of the telecom regulatory agency; f)disadvantages of regulations on incorporation of joint ventures.Chapter IV gives suggestions on how to improve the legal system of FDI access in telecom services in our country. To improve legal system of FDI access, generally our country should take measures in three aspects, to improve regulations that does not abide by WTO rules, to learn from the other country's legal system, to carry out looser FDI policies. The author gives six suggestions further, a)to improve legal frame;b) to reduce the limitations of qualifications for foreign investors; c)to improve the classification of telecom services; d) to lift limitation on foreign equity in joint ventures; e)to strengthen independence of the telecom regulatory agency; f)to improve the regulations on incorporation of joint ventures.