China’s Telecommunications Industry - The Forbidden City in the Information Age?

China’s telecommunications market has developed enormously over the past two decades. With the industry growing 30% faster than the economy as a whole, plenty of players are eager to grab a piece of the action. In light of the recent WTO membership, China is radically restructuring its telecommunications sector and hastily forging a regulatory framework for the impending foreign competition. However, doing business in China is never as simple as it appears. Due to a weak legislation environment combined with traditional, cultural and political factors, many tangible and intangible hurdles remain to trap intended foreign investors. This paper aims to draw a general picture of both golden opportunities and hidden risks facing would-be entrants.