China is amending certain regulations in the telecom sector in accordance with the rules of the WTO, said Wu Jichuan, the Minister of Information Industry in Beijing on December 22.

China will also make sure that irregularities in telecom businesses involving foreign participants be properly dealt with, said Wu.

Under the present telecom regulations, foreign companies are not allowed to run telecom businesses. However, some companies have ignored these regulations.

"Violations of rules governing participation of foreign companies in ISP (Internet Service Provider) and ICP (Internet Content Provider) services must be rectified," Wu said, adding that resolving the problem will help foreign investors compete on an equal footing after China's entry into the WTO.

Supervising the internet market is very complicated, and rules should be worked out in accordance with the guideline of "taking advantages and correcting malpractices to promote development", Wu said.

Work involves differentiating ordinary telecom services from those value-added services under the surveillance of the authorities.

Wu also noted that foreign companies are still required to obtain approvals and licenses from the Chinese government to invest in Telecom businesses after China's entry into the WTO.

"This is common practice all over the world," he said. "We are now improving related rules and regulations according to international standards."

Wu reiterated the ministry's stance on a "China-China-Foreign" venture, a malpractice of China United Telecommunication Corporation in raising fund, and urged both parties to settle the problem as soon as possible.

The minister pointed out that China's entry into the WTO will help telecom companies in China establish modern enterprise systems as well as utilize foreign funds and expertise. "It is both a challenge and opportunity for China's telecom industry."