By Heather McLean, 11 December 2001 11:36
NEWS China Telecom is to be split into two smaller firms as the Chinese Cabinet concedes to World Trade Organisation (WTO) requirements. The announcement was made on the same day China became a member of the WTO. Breaking down monopolies to encourage a more competitive environment is a requisite of WTO entry. Officials said foreign companies will be allowed to own up to half of all Chinese telecoms ventures two years from now, plus 49 per cent of mobile phone companies five years from now. One half of the split monopoly will take the Chinese Telecom name and operate in South China. The other half is thought to be a prospective merging partner for one of the recently created North Chinese operators - China Netcom and Jitong Network Communications.
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