Article 16To establish a foreign-invested telecommunications enterprise providing basic telecommunications services or providing value-added telecommunications services across different provinces, autonomous regions and municipalities directly under the Central Government, the major Chinese investor shall submit the contract and articles of association of the enterprise to be established to the competent foreign trade and economic cooperation department of the State Council on the strength of the Examination Opinions on the Foreign Investment in Telecommunications Services Provision; to establish a foreign-invested telecommunications enterprise providing value-added telecommunications services within a province, autonomous region or municipality directly under the Central Government, the major Chinese investor shall submit the contract and articles of association of the enterprise to be established to the competent foreign trade and economic cooperation department of the relevant province, autonomous region or municipality directly under the Central Government on the strength of Examination Opinions on Foreign Investment Telecommunications Services Provision.
The competent foreign trade and economic cooperation department of the State Council or the competent foreign trade and economic cooperation department of the province, autonomous region or municipality directly under the Central Government shall complete examination within 90 days from the date of receipt of the contract and articles of association of the foreign-invested telecommunications enterprise to be established and make a decision of approval or disapproval. If it is approved, an Approval Certificate for Foreign-invested Enterprise shall be issued; if it is not approved, the applicant shall be notified in writing with the reasons therefor stated.
Article 17The major Chinese investor shall undertake the formalities with regard to License for the Telecommunications Services Provision at the competent information industry department of the State Council on the strength of the Approval Certificate for Foreign-invested Enterprise.
The major Chinese investor of the foreign-invested telecommunications enterprise shall, on the strength of the Approval Certificate for Foreign-invested Enterprise and the License for Telecommunications Services Provision, undertake the formalities for registration at the department for industry and commerce administration.
Article 18To provide trans-boundary telecommunications services, the foreign-invested telecommunications enterprise must obtain approval from the competent information industry department of the State Council and provide the services through the international entry and exit gateway agency the establishment of which has been approved by the competent information industry department of the State Council.
Article 19In case of violation of Article 6 of these Provisions, the competent information industry department of the State Council shall order to make corrections within the specified time limit and concurrently impose a fine of not less than 100,000 yuan but not more than500,000 yuan; if no corrections are made within the specified time limit, the License for Telecommunications Services Provision shall be revoked by the competent information industry department of the State Council and the Approval Certificate for Foreign-invested Enterprise shall be withdrawn by the competent foreign trade and economic cooperation department which has issued the Certificate.
Article 20In case of violation of Article 18 of these Provisions, the competent information industry department of the State Council shall order to make corrections within the specified time limit and concurrently impose a fine of not less than 200,000 yuan but not more than1,000,000 yuan; if no corrections are made within the specified time limit, the License for Telecommunications Services Provision shall be revoked by the competent information industry department of the State Council and the Approval Certificate for Foreign-invested Enterprise shall be withdrawn by the competent foreign trade and economic cooperation department which has issued the Certificate.
Article 21Where false or forged certificates or confirmation documents certifying qualification are provided to obtain approval in applying for the establishment a foreign-invested telecommunications enterprise, the approval shall be invalid, and the competent information industry department of the State Council shall impose a fine of not less than 200,000 yuan but not more than 1,000,000 yuan, revoke the License for Telecommunications Services Provision and the competent foreign trade and economic cooperation department which has issued the Approval Certificate for Foreign-invested Enterprise shall withdraw the Certificate.
Article 22Where a foreign-invested telecommunications enterprise violates the Regulations on Telecommunications or other laws and regulations in providing telecommunication services, it shall be punished by the relevant organs according to law.
Article 23Listings overseas by domestic telecommunications enterprises must be subject to examination of and consent from the competent information industry department of the State Council and be approved in accordance with the relevant provisions of the State.
Article 24These Provisions shall apply mutatis mutandis to the investment into and provision of telecommunications services in Chinese mainland by the companies and enterprises from the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan region.
Article 25These Provisions shall be effective as of January 1, 2002.
(State Council)