China says it's leaping onto telecom superhighway - a portion (CR)

[David Farber <farber () central cis upenn edu>]

         BEIJING, June 21 (Reuter) - Telecommunications Minister Wu
Jiachuan said China is aggressively leap-frogging its way onto a
futuristic information superhighway by exploiting the country's
very backwardness.
         Beijing plans to use US$7 billion in foreign investment by
2000 but still will not allow foreigners to take equity or
management stakes, Xinhua news agency late on Monday quoted the
minister of posts and telecommunications as saying.
         ``Compared with Western countries China is spared the pain of
eliminating outdated equipment due to its not-so-developed
telecommunications infrastructure,'' Wu said.
         Instead, he said, it could instal the newest equipment
without being hindered by entrenched technological interests.
         ``China's telecommunications construction can leap over some
development stages and technical levels which the Western
countries had gone through and directly adopt highly efficient
new technology and equipment,'' Wu said.
         Wu reiterated a ban on direct management or equity ownership
of services by foreigners, a policy that reflects national
security concerns and, some analysts say, the ministry's strong
interest in protecting its lucrative monopoly.
         Wu said foreign investment was welcome in telecommunications
equipment production and supply as well as in engineering,
design, product development, research and education.
.....