Qualified foreign companies willing to legally invest in China's Internet services are welcome, said an official with the Ministry of Information Industry Monday. The government would offer consultations on relevant policies, said the official who asked to remain anonymous.

In line with its commitment to the World Trade Organization, China's value added telecom market has been opened to foreign investment and qualified foreign companies can apply for Internet operational licenses by following the new regulations. Five foreign invested companies have so far been granted licenses, the official said.

The ministry tightened regulations for foreign investors operating Internet services in China in a circular issued last week which may affect many of the big foreign invested websites in China. Websites run by using rented licenses will be closed.

Domestic telecom companies will not be allowed to lease or sell licenses to foreign investors, the official said.

Five years ago China issued regulations concerning foreign investors' telecom business operations and most of them had followed the procedures, according to the official. However, some continue to improperly offer services using shared or borrowed licenses or Chinese partners' domain names and trademarks, the official explained.

China has 123 million netizens -- the world's second biggest Internet user population after the United States.

The ministry asked departments concerned to launch checks on websites before November 1. Websites which operate with borrowed or rented licenses will have to apply directly for a license of their own.

In February, Google was reported not to have obtained the Internet Content Provider (ICP) license needed to operate its new Chinese search engine -- Google.cn in China. Chinese regulators investigated the case but have not yet released their findings.

(Xinhua News Agency August 8, 2006)