SAN FRANCISCO (AP) -- A Chinese telecommunications regulator said Friday that foreign Internet companies should stop worrying about restrictive policies and show how the Internet and other new technologies can help China.
China's Internet policies are based on a range of concerns, including weaknesses in its electronic infrastructure and worries about exposing children to content that is not "healthy," said Chang Xiaobing, deputy director general of the telecommunications bureau in China's Ministry of Information."You must introduce different, good experiences," Chang told a gathering of Asian and U.S. executives.
"Help them understand your good ideas to help them make good regulation policy. You cannot just talk about ... pushing deregulation," he said.
Chang made the comments during a panel discussion of China's Internet revolution sponsored by the Pacific Economic Cooperation Council, a group composed of government, business and academic leaders from Pacific Rim countries.
Chang was pressed to explain why China has limited foreign investment in Internet service and content providers, and when the government would allow the free flow of information and services across its borders.
Under a groundbreaking trade pact signed on Monday, China has agreed to allow foreign investors to own up to 49 percent of telecommunications ventures, including Internet service providers and content providers. The agreement will allow ownership to increase to 50 percent in two years.
The agreement, which opened the door for China's entry in the World Trade Organization, also calls for tariff reductions on a wide range of U.S. products and opens other markets to U.S. investment, including banking and auto sales.
China will hold similar trade talks with the European Union soon, Chang said.
Before the agreement was reached, China had threatened to enforce a regulation banning foreign participation in Internet services. The threat raised a cloud over tens of millions of dollars invested by such big technology companies as Microsoft Corp., America Online Inc. and Yahoo! Inc.
The investment ban was viewed by analysts and U.S. entrepreneurs as an attempt to protect young Chinese companies from competition from large, well-heeled U.S. competitors.
Chang said, though, that concerns included China's lack of infrastructure, including financial systems that would allow widespread electronic commerce.
Edward Tian, president and chief executive officer of China Netcom Corp., the country's third-largest telecommunications company, said China's critics ignore the dramatic change that already has taken place. Those changes include the trade pact and deregulation that has allowed the creation of two new telecommunications companies, his own and China Unicom, in recent years.
"Change takes time, especially when we're talking about changing 1.3 billion people," Tian said. "China already is a very dynamic place."
Heather Killen, vice president of international operations at Yahoo! and a panel participant, said foreign investors should concentrate on developing good relations.
In September, Yahoo! launched Yahoo! China, an Internet portal aimed at mainland Chinese. The venture is based in Hong Kong, but Yahoo! is moving the operation to Beijing.
"How do you start a dialogue with the government in China? The same way you start a dialogue with anybody," she said. "You go there and try to make friends and show a little respect."