Synopsis
The importance of the regulatory regime must not be underestimated in a market like China, where political and commercial considerations are closely intertwined. Efforts in reform have addressed the separation of administrative and enterprise functions, the dissolution of monopolies and the promotion of competition. The government at times takes a light-handed role – such as turning its eyes away from Xiaolingtong (Little Smart) PAS encroachment in urban areas – or a stern approach, making challenging demands on foreign participation in the local market. It has also been severe on its regulation of the Internet. This report looks at the regulatory environment in China’s telecom sector.