December 1999 PulseOnline: TIA Around the Globe: China Accession to WTO Poised to Provide Enormous Opportunities for U.S. Telecom Equipment Manufacturers (Page 1 of 2)

China Accession to WTO Poised to Provide Enormous Opportunities for U.S. Telecom Equipment Manufacturers

TIA applauds the governments of the United States and China for reaching a bilateral agreement on China's accession to the World Trade Organization (WTO). The accord is a major step forward in securing China's full accession into the global trading system.

Of particular interest to U.S. telecom equipment suppliers is the fact that China has pledged to allow foreign companies to own up to 49 percent of Chinese telecommunications ventures upon China's entry into the WTO and up to 50 percent in the second year. Foreigners also will be able to invest in Chinese Internet companies.

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TIA President Matthew J. Flanigan, remarked "The benefits of China's eventual accession to the WTO will be reaped by China as well as foreign investors. A thriving telecommunications sector is key for any country desiring to create a solid information-based society. Today's agreement, the first step toward this goal, will help to develop a more competitive telecommunications environment in China, bringing lower prices and a wider selection of telecommunications products to the Chinese marketplace. With sales of telecom infrastructure equipment in China rising rapidly over the past decade, fair and transparent access to China's marketplace is a welcome sign for U.S. industry."

China represents a huge potential market for U.S. telecommunications equipment suppliers, with purchases by China in 1998 of telecom infrastructure amounting to more than $21 billion. This figure is up from only $1.2 billion in 1990.

TIA stands ready to support the deal on Capitol Hill on behalf of its member companies because U.S. Congressional approval is required to grant China Permanent Normal Trade Relation (PNTR) status before U.S. companies can enjoy the negotiated market access provisions.

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