MIIT looks to draw foreign investment

28 Jun 2012

The Chinese government has said it will encourage private investment in the telecoms sector as part of an effort to arrest the country’s economic slowdown. According to China Daily, telecom regulator the Ministry of Industry and Information Technology (MIIT) will allow private investors to inject funds into eight areas including mobile communications resale, broadband services and value added services (VAS). Further, the government will back operators’ plans for initial public offerings (IPOs) on domestic stock exchanges and will dilute its stake in state-owned telcos. A special focus will be made on infrastructure, with the MIIT looking to lure not only investment, but private towercos. In addition to attracting capital for infrastructure construction projects, the watchdog will also allow private companies rights to operate base stations.