ABSTRACT
China has emerged as the world’s second largest telecommunications market after the United States as a result of phenomenal growth in the 1990s brought about by reform, deregulation and development of communications technology. Restructuring of the industry saw the break-up of the dominant operator, China Telecom, and the entry of new telecoms players, thereby opening up the telecommunications market to competition. WTO accession has further put strong competitive pressures on domestic telecoms corporations. To ensure growth in the age of information technology, China must pay greater attention to expansion of the wireless network. Ultimately, in opening up the telecoms industry, China faces two dilemmas. First, will the country’s security be compromised as it allows freer access to information? Second, will greater emphasis on market orientation hinder the development of an integrated nationwide telecoms network and undercut the country’s objective of providing universal service to all parts of the country?
