Overview

In a further push to the development of the outsourcing industry in China, the State Council and the Ministry of Industry and Information Technology recently announced a series of policies which aim to relax foreign investment restrictions on certain telecoms-related activities which would otherwise be subject to China's fairly stringent restrictions in the telecoms sector. Foreign investors we be able to operate call centres in 21 'model cities' in China on a trial basis, without having to partner with a PRC company. In other words, a foreign investor may choose to set up a wholly foreign owned enterprise or an equity joint venture and there will be no restriction or cap on the foreign investor's shareholding.