ABSTRACT
The telecommunications industry is one of the most crucial ones for China’s modernization process, not only in GDP terms but also, fundamentally, because of its impact on other industries (almost 7% of GDP in 2004, Figure 11.1). As in most European countries, but as opposed to the United States, China’s telecommunications sector has traditionally been one of the most protected national industries: the industry still remains in the hands of the State, despite the gradual liberalization resulting from restructuring in 1998. However, the rapid emergence of private firms has also contributed to changing its profile, as competition increasingly becomes the norm, not so much in terms of interconnection but rather in terms of products offered. Within this sector, there are both service suppliers and equipment suppliers, which we will carefully consider in this chapter. While service suppliers are constituted by the SOEs, equipment suppliers include not only the SOEs but also WFOEs and private firms.
