A government-backed joint venture project between giant US telco AT&T and Chinese partners is set to pioneer approved foreign investment in China’s still-barred internet services sector.
The official Shanghai Daily reported government officials as saying the project is set to be approved regardless of changing WTO conditions. An AT&T official was quoted as saying a feasibility study into the proposed project began last April and plans call for the signing of a joint venture upon its successful conclusion. All parties are moving toward having that completed by the end of the year, an AT&T spokesperson said.
Shanghai Mayor Xu Kuangdi is thought to be pushing hard for the deal to be completed. The process is drawing to a close, with several minor issues to be clinched… AT&T should quicken its negotiations with Shanghai partners on the remaining issues of the joint venture as soon as possible, he said.
News of the deal comes on the heels of China’s World Trade Organization (WTO) entry agreement with the US, which could open the internet industry up to limited foreign investment. But the AT&T spokesperson said the project already enjoys a unique exemption from the rules barring foreign investment, which remain in force until China completes its still unfinished WTO entry process.
We have been given an exception by Minister of Information Industry Wu Jichuan and the Chinese government…It would go ahead despite WTO. As far as we’re concerned, the two aren’t linked for us. the AT&T spokesperson said
Details of the proposed venture are sketchy, but it is expected to provide internet-related network services in Shanghai’s emerging business district, the Pudong New Area, boosting availability of e-commerce and videoconferencing facilities.