December 11, 2001 was a long awaited day for both local businesses, as well as for foreign investors. It was the day that the Chinese State Council promulgated the Regulations for the Administration of Foreign Invested Telecommunications Enterprises (FITE) which were scheduled to come into effect on the 1st of January 2002. Since it’s accession to the WTO, foreign telecommunications have eyed what is arguably the largest telecommunication’s industry in the world, and growing at a rate of over 20 per cent per annum. Having said that, Bureaucratic influences have stunted what were once crucial and foreseeable changes in regulation, the effect being cushioned only by government investment into the industry.
“We encourage more investment into the telecommunications sector as we are moving into a critical stage since the industry is deepening its reform and telecom equipment is upgrading”, says Xi Guohua of the Ministry of Information Industry (MII). However, although this quote quite accurately reflects the attitude of the Chinese Government with regard to foreign investment, stringent regulation is a hurdle which is still making it difficult for foreign firms to penetrate the market. As of October 2004, 10 out of the meagre 12 applications made by foreign firms to provide telecom-related services have been pending approval for over 12 months .
Along with these characteristic delays in Government approval (often blamed on red tape-ism) come the problems of stringent regulation...
Sweeney, M. (2010). Foreign direct investment in India and China: The creation of a balanced regime in a globalized economy. Cornell International Law Journal, 43, 207-248. Retrieved from http://www.lawschool.cornell.edu/research/ilj/upload/sweeney.pdf
On December 14, 2006, Cisco invested $50 million in China communications services, one of the biggest overseas strategic investors of China communications services. After becoming a shareholder of China communications services, Cisco and China communications services managed telecommunications services and new network solutions for China enterprises including IP infrastructure, digital video, 3G platform and its application. In November 2006, Cisco (China) Financing Lease Co. Ltd was established in Beijing and became the first network equipment company of China to provide long-term financing lease finance solutions for customers (Liang, R. 2013).
China Enters The World Trade Organisation China has swiftly turned into a world organizer in trade and will merely develop in significance to the global economy. These particulars are established with China's up to date economic statistics raising more than 9% per year and economists' projections of the nation's upcoming China will double its gross domestic product of the year 2000 in the year 2010. The way the Chinese government attained these remarkable economic statistics are during a restoration of Chinese trade strategies. Alteration measures in the country series from concentrated trade barriers along with technical contracts intended for agriculture, to infrastructure investment strategies and enhanced values for pharmaceutical products. On the other hand, stemming from China's economic development are dilemmas for instance inflation as well as irregular progress of the country. Moreover, after fifteen years of conferences and negotiations, on November 10, 2001 at the World Trade Organisation (WTO) Ministerial Conference in Doha, Qatar, WTO members officially permitted the consent package for the People's Republic of China. China became a full member, the WTO's 143rd, on December 11, 2001. “International economic cooperation has brought about this defining moment in the history of the multilateral trading system,” said Mike Moore, WTO Director-General, at the conclusion of the meeting of the Working Party on China's Accession. “With China's membership, the WTO will take a major step towards becoming a truly world organization. The near-universal acceptance of its rules-based system will serve a pivotal role in underpinning global economic cooperation.” http://www.wto.org/english/news_e/pres01_e/pr243_e.htm To enhan...
The Telecommunications Act of 1996 can be termed as a major overhaul of the communications law in the past sixty-two years. The main aim of this Act is to enable any communications firm to enter the market and compete against one another based on fair and just practices (“The Telecommunications Act 1996,” The Federal Communications Commission). This Act has the potential to radically change the lives of the people in a number of different ways. For instance it has affected the telephone services both local and long distance, cable programming and other video services, broadcast services and services provided to schools. The Federal Communications Commission has actively endorsed this Act and has worked towards the enforcement and implementation of the various clauses listed in the document. The Act was basically brought into existence in order to promote competition and reduce regulation so that lower prices and higher quality services for the Americans consumers may be secured.
industries strive for. Government regulations are meant to help more than just the one entity; the
China maintains a strictly regulated system of foreign exchange controls, meaning funds flowing into and out of China are tightly regulated. Accordingly, many multinational corporations have adopted certain implicit policies, such as minimizing their profits in China in a legitimate manner via intercompany payments, i.e., charging their Chinese unit
Since China joined the WTO in 2001,which has significantly further opened up the massive Chinese market for foreign investments and trading. China has witnessed a remarkable economic growth and due to its huge population, China has become a major player in the world economy. Furthermore, China has a huge potential consumer market due to a dramatic expansion of the middle class in China (KPMG, 2004). Therefore, China appears to be one of the most attractive markets for many multinational companies (KPMG, 2004). Since 2003, China has become the biggest target country for international investments following by the United States (KPMG, 2004). In addition, China has recently further liberalized the government regulations and restrictions toward foreign business operation in China. These basically allow foreign firms to pursue their preferred entry mode choices. However, the Chinese market is heterogeneous, large, complex and not easily accessible (MOFCOM, 2013). Therefore, the choice of the entry mode is significantly considered as a frontier issue in the international marketing (Root,
Nowadays, governments use a variety of regulatory instruments to implement programs and other agendas. As we know, the use of regulations by governments has both costs and benefits. There are many kinds of regulatory environment such as economic regulation, social regulation and administrative regulation. But have you ever wondered
Streamlining Regulatory policies means to reduce the amount of regulations and formal procedures. This allows businesses more freedoms from those businesses, and it cuts down on the amount of heavy administrative and financial burden(Tellier-Cohen, Pg. 1). Doing this creates less friction, and a more stable environment for large and small businesses. This needs to be done, because many businesses feel like the government gets in the way at points (Liveris, Pg. 8).
China and India both have ponderous bureaucracy systems created by history and tradition. Since the opening of China’s market to foreign investors in 1978 and India in 1991, they have been gradually moving from centrally planned economic system towards decentralisation. However, besides their continuous movements in order to provide businesses a better environment, significant problems still exist.
Firstly, Brand X invested small amounts of capital in China from the early 1990s but without considering a business strategy based on factors unique to the under-developed Chinese system of commerce. Since China is developing countries, the legal system, infrastructure and guideline are developing.(xi) Brand X cannot only invested small amounts of capital in China and without considering a business strategy based on factors unique to the under-developed Chinese system of commerce because China’s undeveloped infrastructure, government regulations, and regional protectionism fragment distribution channels throughout China.( https://wweb.uta.edu/insyopma/prater/IJPDLM%20logistics%20in%20China.pdf) For example, the legal system in China is improving and it cannot protect the foreign investors at this moment. Also, because of the unperfected infrastructure, foreign investors are difficult to find the distribution in China. The product production is also affected since the system in China is not effective enough. The unclear guidelines are the main problem that is faced by the foreign investors since they do not know how to follow the guidelines. (xi)
Cell phone manufacturers and service providers are at the core of the cell phone industry. These corporations are integral from their research and development endeavors to interactions with the consumer and the marketing of new products. The companies that control such factors of cellular phones are very numerous, so it is difficult to address all the cell phone manufacturers and service providers. However, we have focused largely on only the most significant cellular companies namely in the U.S. marketplace, although many have global ties. Collectively, companies around the world have the same goals in mind – to create desirable cutting-edge technology and to increase consumer satisfaction with hopes of generating sales, and thus profits.
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
Interests: The sooner it could distance itself from its American roots by adopting “.cn” domain, the sooner it becomes a member of “in-group” in Chinese cul...
Multinational enterprise (MNE) is “a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collinson 2012, p.38) that has at least one office in different countries but centralised home office. These offices coordinate global management in the context of international business. MNEs have increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, there are many issues involved with how MNEs operate well overseas, especially in emerging markets (EMs) (Cavusgil et al., 2013, p.5).