The Chinese Government Should Consider Initiating Private Capital in Reconstruction

Published By : 09 Mar 2015 | Published By : QYRESEARCH

According to tech news portal of Sina, the telecom market in China has previously gone through 4 rounds of restructuring. Past alterations were made to reallocate interests without implementing technical innovation or modification in manufacturing relationships or management forms. As the potential 5th round comes closer, the government should consider initiating private capital into the reconstruction.

The telecom market in China is led by 3 state-run operators, China Unicom, China Telecom, and China Mobile. In the previous 4 rounds of non-market telecom reformation over the previous 20 years, the reformation failed to contract the gap significantly amongst these operators. Local customers earned a little from inching technical development.

Some officers of various telecom operators may have dispute that the telecom fees have declined, specifically the rates in mobile data traffic, but these are the outcome of technical improvement, not modification in telecom manufacturing relations.

Past rounds of reformations were the orders straight from the central government to retain or raise the value of assets owned by states. The modifications between the operators, all being owned by the states, were barely noticeable. These rounds of reformations could be considered as reorganization, but not reform. If the government actually intends to reconstruct telecoms, it should consider the advantages of the common republic.

Launching the private capital into the telecom operators that is owned by the states is a must for such reconstruction to initiate. The government has made promises but action hasn’t been taken majorly because it wanted to control the telecom market.
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