Top Biz News
Crackdown on phone services irregularities
By Li Weitao (China Daily)
Updated: 2006-07-28 08:21
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Such a move is aimed at "maintaining a fair market environment," according to the notice.
Chen said Internet portals, e-commerce and search engines will be the three major areas targeted in the crackdown.
Over the past few years, China's Internet sector has witnessed a number of mergers and acquisitions involving foreign investors.
US Internet giant Ebay invested US$180 million in a 33 per cent stake in Chinese e-commerce firm EachNet in July 2004.
And last year Yahoo! paid US$1 billion for a 40 per cent stake in China's top e-commerce company Alibaba.com.
"Some foreign companies, which already offer telecoms value-added services, might have to reapply for a licence," said Chen.
"MII is sending a message to all foreign companies to follow procedures and abide by the law and regulations. Looking for shortcuts is unacceptable."
The MII also said all domestic companies need to get approval from the ministry before an overseas listing.
By June China had 123 million Internet users, 365 million fixed-line telephone users and 426 mobile phone subscribers, according to the China Internet Network Information Centre and the MII.