The general principles of the regulation are to regulate the telecommunications market, safeguard the legitimate rights and interests of users of telecommunications and proprietors of telecommunications business, ensure the safety of telecommunications network and information, and promote healthy development of the telecommunications industry.

All those who engage in telecommunications business and related activities in the People's Republic of China must abide by the regulation.

The department in charge of information technology under the State Council is responsible for enforcing supervision and administration over the national telecommunications industry according to the regulation.

The supervision and administration of telecommunications industry stipulate that government wants to clearly separate the functions and duties from enterprises, break monopolies, encourage competition, facilitate development, openness, fairness and justice.

According to the regulation, China implements licensing system in telecommunication industry in line with different categories of the businesses. And all the operators must apply to the central or provincial IT administration for the license before starting businesses.

It divides the telecommunications business into basic telecommunications business and value-added businesses.

Operators of basic telecommunications business must apply to the State Council's IT administrative department for business permits.

For value-added business, the operators must apply to the State Council's IT administrative department for permits if their business covers two or more provincial areas, autonomous regions or municipalities under direct administration of the central government. They could apply to the provincial IT administration for permits if their business covers only one provincial area.

The regulation also states that state-owned shares must have over 51 percent in those that are engaged in basic business.

(Xinhua 10/01/2000)