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Promote the High-level Opening-up of Telecommunications Industry: Policy Options on Focal Points for Reform Advancement (No.120, 2021)


By Liu Xin, Research Team on “The Structural Reform of Service Industry Driven by Institutional and Open-Oriented Development”, Institute of Market Economy, DRC

Research Report, No.120, 2021 (Total 6185) 2021-5-13

Abstract: The telecommunications industry is an important service industry that provides network connections for the national economy, and it is also a key industry in the global information connectivity and for the development of digital economy. Most of the telecommunications markets in developed countries have undergone the reform from monopoly to competition with phased-in opening up to foreign investment. In recent years, China has actively furthered the opening-up of the telecommunications industry, but its opening-up level is still relatively low compared with developed countries, especially on issues relating to competition barriers and foreign investment access. In the process of promoting the high-level opening-up of the telecommunications industry, China is facing some problems such as insufficient market competition protection, obstacles checking market access of foreign investment, restrictions on cross-border data flow, and imperfect regulatory system. Therefore, we need to conform to the development trend of the global telecommunications industry, adhere to the principle of safeguarding national security and steadily advance opening up. In line with international advanced rules and best practices, we need to remove competition barriers, give full scope to the role of relaxing limits on foreign shareholdings, advance the reform of state-owned enterprises, enhance the building of regulatory system, and rely on key opening-up platforms to promote high-level opening-up and in-depth reform of the telecommunications industry.

Keywords: telecommunications industry, high-level opening-up, reform, OECD Service Trade Restrictions Index (STRI)