Study On The Effect And Countermeasure That Chinese Telecommunication Industry Join The WTO

November 10, 2001 China formally entered into the WTO (world trade organization) after the 15 years frustration. The opening of the telecommunication market is automatic result of globalize economy. Chinese entry into the WTO has more benefit than irregularity from the whole country. Chinese entry into the WTO has more irregularity than benefit from the telecommunication industry. If we can fully use the chance, improve the competitive ability of Chinese telecommunication company. We can convert the irregularity into benefit in the shorter time.The first part of the paper introduced the effect on economy and telecommunication industry that China join the WTO. And introduce the development of foreign telecommunication industry, know the reform and development of foreign telecommunication industry, recite the 2000 developing status of Chinese telecommunication industry . The emphasis is analyse the character of the telecommunication industry, draw the conclusion: the telecommunication industry is a increasing industry . After analysed the core company, know the gap between the foreign company at the same time, we know our advantage .The telecommunication service must be affected after China join the WTO, but telecommunication manufactures will face the competition . The telecommunication market will have a fircely competitive circumstance.The paper detailedly analysed the effectness and counterplan that the WTO give the telecommunication industry, and bring forth my opinion and advice about the problem , future development, destination and strategy.After study the development of the foreign telecommunication industry. Chinese telecommunication industry should gradually open , welcome the foreign company enter the Chinese market, combine the Chinese company: amplify the scale , enhance the competition.Set up perfect telecommunication indemnity system; encourage company to compete, improve their international comptetitive ability; perfect the market entering rule, widen the open to civil.There are chances and challenge for Chinese entry into the WTO, Chinese telecommunication manufactures have competed with foreign companies: we have the four telecommunication companies JULONG , DATANG , ZHONGXING, HUAWEI, Chinese telecommunication service will be affected at same degree , but competition is useful to create fair comptetitiveenvironment, perfect our service level.After join the WTO, there are some time for the opening of fixed telephone .For fixed telephone market, investment is high. The possibilty for foreign company compete with civil company is small.Thus the fixed telephone market will not be affected after join the WTO. On the contrary, the fixed market will have a developing chance. It will be easy for us to bring in the capital, technique.As for the mobile telecommunication, according the rule, after join the WTO one year, the mobile telecommunication market will open Beijing, Shanghai, Guangzhou, unlimited set up joint venture companies, the ratio of foreign capital no more than 25%; after join the WTO 3 years, open following 14 cities, the ratio of the foreign capital no more than 35%, after join the WTO 5 years, open the whole market, the ratio of foreign capital no more than 49%. Join the WTO will give the rapid developing mobile telecommunication a good chance, it will be benefical to get foreign capital, get the foreign advanced management experience , dealeido, innovality method and running mode.The conclusion: facing the fircely compteting telecommunication market, Chinese telecommunication industry should have a act. It has more benefit than defectiveness for Chinese entry into the WTO.