China 2025 ("MIC 2025") plan, which targets ten strategic industries deemed critical to China's economic competitiveness and high-tech growth.[1] According to the U.S. Chamber of Commerce, MIC 2025 "appears to provide preferential access to capital to domestic companies in order to promote their indigenous research and development capabilities, support their ability to acquire technology from abroad, and enhance their overall competitiveness."[2] The U.S. Chamber also found that, in concert with China's state-led development plans, MIC 2025 constitutes a "broader strategy to use state resources to alter and create comparative advantage[s] in these sectors on a global scale."[3]
The telecommunications industry is among those China deemed critical. In MIC 2025, the Chinese government outlines its goal for the information and telecommunications industry to "enter the ranks of powerful countries" by 2020.[4] China also seeks to be the leader in 5G international standards, technology, and industry and to reach 50 percent share of the international market for next generation internet.[5]
B. China Heavily Regulates its Telecommunications Industry and Carriers
To reach its goal to be a leader in the telecommunications industry, the Chinese government exerts control over foreign investment and domestic carriers. Further, it has incentivized state-owned carriers to expand operations internationally. This section analyzes each topic in turn.
1. China Heavily Restricts Foreign Telecommunications Investments
China maintains one of the most restrictive foreign investment regimes in the world.[6] The Chinese government first allowed foreign businesses in China during the 1970s.[7] Foreign investment accelerated in 2001, when as a condition to join the World Trade Organization-China committed to allowing foreign carriers to form joint ventures with domestic carriers.[8] Despite the appearance of opening up, however, China has continued to restrict access to the telecommunications
- ↑ See U.S. Chamber of Commerce, Made in China 2025: Global Ambitions Built on Local Protections 6 (2017).
- ↑ Id.
- ↑ Id.
- ↑ Id. at 65, 69.
- ↑ Id. at 66.
- ↑ See id. at 26 (citing OECD FDI Regulatory Index, http://www.oecd.org/investment/fdiindex.htm).
- ↑ Laney Zhang, China: Foreign Investment Law Passed, Library of Congress: Global Legal Monitor (May 30, 2019), https://www.loc.gov/law/foreign-news/article/china-foreign-investment-law-passed/.
- ↑ Wayne M. Morrison, Cong. Research Serv., RL33536, China-U.S. Trade Issues 49–50 (2018).
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