DOCSLIB.ORG

Liberalisation and Growth in Telecommunications

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Liberalisation and Growth in Telecommunications LiberalisationLiberalisation andand GrowthGrowth inin TelecommunicationsTelecommunications -- HongHong Kong,Kong, China'sChina's ExperienceExperience TT FF So,So, AssistantAssistant DirectorDirector OfficeOffice ofof thethe TelecommunicationsTelecommunications AuthorityAuthority HongHong Kong,Kong, ChinaChina AgendaAgenda KeyKey MilestonesMilestones inin LiberalisationLiberalisation ¾ IndependentIndependent RegulatorRegulator ¾ LocalLocal FixedFixed NetworkNetwork ¾ ExternalExternal FixedFixed NetworkNetwork ¾ MobileMobile NetworkNetwork ¾ InternetInternet AccessAccess ServiceService LiberalisationLiberalisation BenefitedBenefited HKCHKC’’ss economyeconomy BackgroundBackground InformationInformation aboutabout HongHong Kong,Kong, ChinaChina SpecialSpecial AdministrativeAdministrative RegionRegion ofof thethe PeoplePeople’’ss RepublicRepublic ofof ChinaChina AreaArea 1,1001,100 sqsq kmkm PopulationPopulation 6.9096.909 millionmillion NumberNumber ofof HouseholdsHouseholds 2.237million2.237million GrossGross DomesticDomestic ProductProduct perper capitacapita inin 20062006 –– US$US$ 27,00027,000 ServicesServices constituteconstitute aboutabout 91%91% ofof economyeconomy KeyKey TelecomTelecom StatisticsStatistics Telephone line density 56% by population Number of local fixed operators 10 Broadband penetration 75% by households Mobile penetration 143.4% Number of mobile operators 5 (four 3G operators) 2.5G/3G customers as a percentage 26 of mobile customers Public Wi-Fi access points 5288 Annual revenue US$ 6.6 billion (2007) Annual capital expenditure US$ 0.8 billion (2007) IndependentIndependent RegulatorRegulator LegalLegal basisbasis –– TelecommunicationsTelecommunications OrdinanceOrdinance TelecommunicationsTelecommunications AuthorityAuthority (TA)(TA) –– IndependentIndependent regulatorregulator empoweredempowered byby thethe OrdinanceOrdinance toto regulateregulate thethe telecommunicationstelecommunications industryindustry 19931993 • Office of the Telecommunications Authority (OFTA) established as the executive arm of the TA • paved the way for liberalisation LiberalisationLiberalisation inin LocalLocal FixedFixed NetworkNetwork andand ServiceService 19951995 EndEnd ofof domesticdomestic telecommunicationstelecommunications franchisefranchise ThreeThree newnew companiescompanies licensedlicensed • New World Telephone Limited • New T&T Hong Kong Limited • Hutchison Communications Limited to compete with the incumbent operator, Hong Kong Telephone Company InterconnectionInterconnection rulesrules establishedestablished LiberalisationLiberalisation inin LocalLocal FixedFixed NetworkNetwork andand ServiceService 19971997 FixedFixed numbernumber portabilityportability introducedintroduced 20002000 –– furtherfurther liberalisationliberalisation 55 wirelesswireless locallocal fixedfixed networksnetworks licensedlicensed CableCable TVTV operatoroperator allowedallowed toto provideprovide telephonetelephone servicesservices LiberalisationLiberalisation inin LocalLocal FixedFixed NetworkNetwork andand ServiceService 20032003 –– fullyfully liberalisedliberalised NoNo limitlimit onon numbernumber ofof licenceslicences TechnologyTechnology neutralneutral NoNo restrictionrestriction onon foreignforeign ownershipownership ServicesServices fullyfully privatised,privatised, nono governmentgovernment subsidysubsidy NoNo controlcontrol onon tariffstariffs CompetitionCompetition provisionsprovisions introducedintroduced MarketMarket driven,driven, propro--competition,competition, propro-- consumerconsumer policypolicy TelephoneTelephone LinesLines 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 No of Lines 2,000,000 1,500,000 1,000,000 500,000 B usi ness Residential Total 0 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 TrueTrue CompetitionCompetition DevelopedDeveloped inin MarketMarket Market Share of incumbent in 2006 -2007 Business lines 69.4% Residential lines 65.9% Incumbent Incumbent new entrants new entrants LiberalisationLiberalisation ofof ExternalExternal NetworkNetwork andand ServiceService HongHong KongKong TelecommunicationTelecommunication InternationalInternational (HKTI)(HKTI) heldheld anan exclusiveexclusive licencelicence forfor externalexternal servicesservices inin 19901990’’ss InIn 1998,1998, HKTIHKTI receivedreceived HK$6.7HK$6.7 billionbillion cashcash compensationcompensation fromfrom thethe governmentgovernment toto surrendersurrender itsits exclusiveexclusive licence,licence, eighteight yearsyears earlierearlier thanthan thethe scheduledscheduled expiryexpiry inin 20062006 LiberalisationLiberalisation ofof ExternalExternal NetworkNetwork andand ServiceService 1999 External service-based competition introduced 2000 External facilities-based competition introduced ¾ New Technologies lowered operating cost ¾ Substantial reduction in IDD tariffs ¾ No limit on number of operators ¾ Mandatory interconnection between external and local fixed networks IDDIDD TrafficTraffic 10,000,000,000 9,000,000,000 8,000,000,000 7,000,000,000 6,000,000,000 5,000,000,000 No. of Minutes 4,000,000,000 3,000,000,000 2,000,000,000 Outgoing IDD 1,000,000,000 Incoming IDD Total - 96 97 98 99 00 01 02 03 04 05 06 07 IDDIDD TariffsTariffs LiberalisationLiberalisation ofof externalexternal fixedfixed networks/servicesnetworks/services broughtbrought aboutabout substantialsubstantial reductionreduction inin IDDIDD tariffstariffs InIn 19991999 –– 20022002 (4(4 years)years) alone,alone, estimatedestimated consumerconsumer savingsaving reachedreached HK$HK$ 25.525.5 billionbillion (much(much higherhigher thanthan thethe compensationcompensation grantedgranted toto thethe incumbentincumbent operator)operator) InternationalInternational privateprivate leasedleased circuitscircuits priceprice alsoalso droppeddropped substantiallysubstantially (eg.(eg. inin 2001,2001, priceprice ofof IPLCIPLC forfor US/HKUS/HK droppeddropped byby 50%)50%) LiberalisationLiberalisation inin MobileMobile NetworkNetwork andand ServicesServices 1984 First mobile network introduced 1985 – 1989 Four analogue licences issued, later switched to GSM 900 and CDMA 1996 Additional 6 licences issued to provide GSM-1800 1999 Mobile number portability implemented, triggered acute market competition LiberalisationLiberalisation inin MobileMobile NetworkNetwork andand ServicesServices 2001 Four 3G licensed issued through spectrum auctioning; First MVNO licence issued 2007 One additional licence for CDMA 2000 issued Now 152% subscriber penetration rate Near future Several licences for broadband wireless access to be issued through spectrum auctioning LiberalisationLiberalisation inin MobileMobile NetworkNetwork andand ServicesServices AllAll liberalisationliberalisation policiespolicies forfor fixedfixed networknetwork applyapply NaturalNatural limitationlimitation onon numbernumber ofof licenseeslicensees duedue toto limitedlimited availabilityavailability ofof spectrumspectrum SpectrumSpectrum auctionauction -- toto ensureensure open,open, fairfair andand efficientefficient useuse ofof spectrumspectrum SpectrumSpectrum tradingtrading toto bebe consideredconsidered CellularCellular TelephonesTelephones 12,000,000 10,000,000 8,000,000 6,000,000 Number of Subscribers 4,000,000 2,000,000 Cellular Telephones - 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 InternetInternet AccessAccess ServiceService OpenOpen toto fullfull competitioncompetition sincesince launchedlaunched inin 19901990’’ss No/LowNo/Low marketmarket entryentry barrierbarrier LowLow licencelicence feefee (HK(HK $750$750 perper year)year) LightLight--handedhanded regulationsregulations NumberNumber ofof LicensedLicensed InternetInternet ServiceService ProvidersProviders 300 250 200 150 100 50 Li censees 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 InternetInternet TrafficTraffic VolumeVolume (Customer Access via Broadband Networks) 900,000 800,000 700,000 600,000 500,000 Terabits 400,000 300,000 200,000 via 100,000 Broadband - 97 98 99 00 01 02 03 04 05 06 07 AllAll SectorsSectors NowNow OpenOpen toto CompetitionCompetition PagingPaging servicesservices –– sincesince 19701970’’ss ValueValue--addedadded servicesservices –– 19851985 MobileMobile phonephone networksnetworks andand servicesservices –– 19851985 LocalLocal fixedfixed networksnetworks andand servicesservices –– 19951995 ExternalExternal servicesservices –– 19991999 ExternalExternal facilitiesfacilities –– 20002000 2002 2003 2004 2005 2006 2007 Wireline-based fixed 7 9 9 10 10 10 carriers Wireless-based fixed 2 2 1 1 1 1 carriers Satellite-based external 5 4 5 6 6 6 fixed carriers Cable-based external 18 18 19 20 21 24 fixed carriers External telecom 213 217 230 226 248 252 services operators LiberalisationLiberalisation BenefitedBenefited HKCHKC’’ss EconomyEconomy ConsolidatedConsolidated HongHong KongKong’’ss positionposition asas aa telecommunicationstelecommunications hubhub inin thethe AsiaAsia--PacificPacific RegionRegion HighHigh quality,quality, lowlow priceprice servicesservices enhancedenhanced competitivecompetitive advantagesadvantages ofof otherother sectorssectors ReducedReduced costcost ofof telecommunicationstelecommunications toto businessbusiness andand residentialresidential consumersconsumers CompetitionCompetition drovedrove serviceservice innovation,innovation, whichwhich inin turnturn enhancedenhanced productivityproductivity (increase(increase inin capacity,capacity, decreasedecrease inin unitunit cost)cost) FacilitatedFacilitated thethe rolloutrollout
Load more

Recommended publications
  • Hong Kong's Role in China's Financial Reform
    The LEXIS PRACTICE ADVISOR Journal TM WINTER 2015 / 2016 www.lexispracticeadvisor.com Start your free trial today 300+ 11 900+ LEXISNEXIS.COM/FINISH-BIG OR CALL 800.628.3612 ATTORNEY PRACTICE SEARCHABLE AUTHORS AREAS DEAL POINTS Contents WINTER 2015 / 2016 PRACTICE NEWS PRACTICE PROJECTIONS 4 A BRIEFING ON EMERGING ISSUES 35 DUE DILIGENCE IN LIFE SCIENCES IMPACTING TRANSACTIONAL PRACTICE MERGERS & ACQUISITIONS Business & Commercial, Banking & Finance, Labor & Mergers & Acquisitions Employment, Securities & Capital Markets, Real Estate 46 “REGULATION A-PLUS” LIMITED PUBLIC PRACTICE NOTES OFFERINGS UNDER SECURITIES ACT 10 UNDERSTANDING THE NLRB’S SECTION 3(B)(2) POSITIONS ON REGULATING Securities & Capital Markets EMPLOYEES’ SOCIAL MEDIA USAGE Labor & Employment 52 FDA RELEASES FIRST TWO RULES UNDER THE FOOD SAFETY MODERNIZATION ACT 18 CONFIDENTIALITY, NONDISCLOSURE Business & Commercial & SECRECY AGREEMENTS IP & Technology PRACTICE POINTERS 56 DRAFTING AND NEGOTIATING EFFECTIVE PRACTICE TRENDS CLOUD COMPUTING AGREEMENTS 24 CHALLENGES OF TAXING IP & Technology THE SHARING ECONOMY Tax 66 DRAFTING ADVICE: DEVELOPING SOCIAL MEDIA POLICIES 28 CARSHARING GETS EASY Labor & Employment REGULATORY RIDE Business & Commercial JURISDICTIONAL PRACTICE 69 MANAGERS, AGENTS & ATTORNEYS PRACTICE PROFILE California Business & Commercial 31 A VIEW OF ASSET-BASED LENDING GLOBAL PRACTICE WITH DAVID W. MORSE, BANKING & FINANCE CHAIR, OTTERBOURG PC 75 HONG KONG’S ROLE IN CHINA’S FINANCIAL Banking & Finance REFORM - THE ERA OF THE “NEW NORMAL” Banking & Finance
    [Show full text]
  • Economy Profile Hong Kong SAR, China
    Doing Business 2020 Hong Kong SAR, China Economy Profile Hong Kong SAR, China Page 1 Doing Business 2020 Hong Kong SAR, China Economy Profile of Hong Kong SAR, China Doing Business 2020 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Employing workers Flexibility in employment regulation and redundancy cost Page 2 Doing Business 2020 Hong Kong SAR, China About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level.
    [Show full text]
  • Hong Kong in the Global Economy: How the Special Administrative Region Rises to the Challenges Posed by China
    Asia Programme Paper: ASP PP 2010/05 Programme Paper Hong Kong in the Global Economy: How the Special Administrative Region Rises to the Challenges Posed by China Kerry Brown Senior Research Fellow, Asia Programme, Chatham House Sophie Steel Research Assistant October 2010 The views expressed in this document are the sole responsibility of the author(s) and do not necessarily reflect the view of Chatham House, its staff, associates or Council. Chatham House is independent and owes no allegiance to any government or to any political body. It does not take institutional positions on policy issues. This document is issued on the understanding that if any extract is used, the authors and Chatham House should be credited, preferably with the date of the publication. Programme Paper: Hong Kong in the Global Economy SUMMARY • The Hong Kong Special Administrative Region (SAR) has quickly bounced back from the effects of the global economic recession in 2008/09. Economic indicators for the first half of 2010 are strong and attention is turning to the medium- to long-term outlook and Hong Kong’s position in the region. • The SAR’s links with the Mainland economy are still special, though they are evolving and changing. While previously Hong Kong has been seen as the gateway into China, in the future it is also increasingly likely to be the gateway out of the People’s Republic of China (PRC). It now needs to focus on how it can best exploit this for its international positioning as others become interested in directly attracting PRC funds and investment.
    [Show full text]
  • Economic Integration Between Hong Kong, Taiwan and The
    OECD Economic Studies No . 20. Spring 1993 ECONOMIC INTEGRATION BETWEEN HONG KONG. TAIWAN AND THE COASTAL PROVINCES OF CHINA Randall S. Jones. Robert E . King and Michael Klein CONTENTS Introduction ...................................................... 116 1. Economic integration within the CEA ............................. 118 A . Trade .................................................. 118 B. Foreign direct investment ................................... 123 C . Other linkages ........................................... 127 D. Impact of integration within the CEA .......................... 128 II . Forces driving integration ...................................... 130 A . Resource endowments ...................................... 130 B . Revealed comparative advantage ............................ 133 C . The role of policies ........................................ 134 D . Political ties ............................................. 137 E . Rapid growth despite policy distortions ......................... 138 Ill. Outlook .................................................... 139 Bibliography .................................................... 1.43 Randall S . Jones and Robert E. King are economists in the Foreign Trade and Investment Division of the Economics Department. Michael Klein. who was formerly employed in the same division. now works at the World Bank . The authors would like to thank Sveinbjorn Blondal. Michael P . Feiner. Nicholas Vanston and Bernard Wacquez for their comments and suggestions. 115 INTRODUCTION During the past
    [Show full text]
  • 10. HONG KONG's STRATEGIC IMPORTANCE UNDER CHINESE SOVEREIGNTY Tai Ming Cheung Hong Kong Has Come a Long Way Since It Was
    - 170 - 10. HONG KONG’S STRATEGIC IMPORTANCE UNDER CHINESE SOVEREIGNTY Tai Ming Cheung Hong Kong has come a long way since it was dismissed as a barren rock a century and a half ago. This bastion of freewheeling capitalism today is a leading international financial, trading and communications center serving one of the world’s fastest growing economic regions. But Hong Kong is also entering a period of considerable change and uncertainty following its reversion to Chinese sovereignty that is likely to have a far- reaching impact on its strategic importance and role over the coming years. As a British colony, Hong Kong was an important outpost for the West to keep an eye on China and safeguard busy sea-lanes. Under Chinese rule, the Hong Kong Special Administrative Region (SAR) will play a crucial role in boosting China’s economic growth and promoting Beijing’s long-term goal of reunification with Taiwan. How China handles Hong Kong’s return will have major consequences for the territory as well as for China’s relations with the international community. The world will be watching very carefully whether Beijing will adhere to its international commitments of allowing the SAR to retain a high degree of autonomy. The U.S. has said that the transition will be a key issue in determining its future relations with China. This paper will examine the strategic implications of Hong Kong's return to Chinese rule. Several key issues will be explored: • Hong Kong's past and present strategic significance. • The stationing of the People's Liberation Army (PLA) in Hong Kong.
    [Show full text]
  • Renminbi Services
    Renminbi Services Renminbi Services RMB Remittances8 Your seal of financial success in mainland China You can remit RMB funds from your RMB denominated and Hong Kong account with HSBC in Hong Kong to your RMB denominated account outside Hong Kong9. If you need to make As economic links between the mainland China and Hong Kong continue to grow rapidly, our comprehensive Renminbi remittances on a regular basis, you can set up standing instructions through Personal Internet Banking or at any (RMB) financial management service is catered to your HSBC branches in Hong Kong10. We will remit the amount needs. Leveraging on our extensive network in Hong Kong, regularly according to your instructions, saving you time and our service allows you to manage your wealth more easily, and enjoy financial advantages no matter where you are. trouble. HSBC’s RMB Services offer a wide range of features: RMB Investment Products11 RMB Deposits1 HSBC provides you a range of RMB denominated investment products such as securities, bonds, structured HSBC’s RMB Services offer you savings and time deposit2 products, Unit Trusts and insurance products12 to suit your services to meet your financial needs: investment needs. Please contact us for our latest offering. Deposit RMB directly into your account in Hong Kong through our RMB savings service, and withdraw RMB Next Step… from your account without hassle. HSBC’s RMB Services are your key to a wealth of financial Transfer RMB through Personal Internet Banking, advantages in the mainland China and Hong Kong. Mobile Banking, Phone Banking or at any HSBC branches in Hong Kong.
    [Show full text]
  • Review of the Development and Reform of the Telecommunications Sector in China”, OECD Digital Economy Papers, No
    Please cite this paper as: OECD (2003-03-13), “Review of the Development and Reform of the Telecommunications Sector in China”, OECD Digital Economy Papers, No. 69, OECD Publishing, Paris. http://dx.doi.org/10.1787/233204728762 OECD Digital Economy Papers No. 69 Review of the Development and Reform of the Telecommunications Sector in China OECD Unclassified DSTI/ICCP(2002)6/FINAL Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development 13-Mar-2003 ___________________________________________________________________________________________ English text only DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY Unclassified DSTI/ICCP(2002)6/FINAL REVIEW OF THE DEVELOPMENT AND REFORM OF THE TELECOMMUNICATIONS SECTOR IN CHINA text only English JT00140818 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format DSTI/ICCP(2002)6/FINAL FOREWORD The purpose of this report is to provide an overview of telecommunications development in China and to examine telecommunication policy developments and reform. The initial draft was examined by the Committee for Information, Computer and Communications Policy in March 2002. The report benefited from discussions with officials of the Chinese Ministry of Information Industry and several telecommunication service providers. The report was prepared by the Korea Information Society Development Institute (KISDI) under the direction of Dr. Inuk Chung. Mr. Dimitri Ypsilanti from the OECD Secretariat participated in the project. The report benefited from funding provided mainly by the Swedish government. KISDI also helped in the financing of the report. The report is published on the responsibility of the Secretary-General of the OECD.
    [Show full text]
  • The End of "Made in Hong Kong"? De-Industrialisation and Industrial
    242 Geographica Helvetica Jg. 54 1999/Heft 4 The End of «Made in Hong Kong»? - De-Industrialisation and Industrial Promotion Policy in Hong Kong Werner Breitung, Basel Chinese hinterland is a crucial element of Hong Kong's economic policies and should not be forgotten. Both as¬ pects are discussed in the last chapter. 1 Introduction Not long ago the label «made in Hong Kong» was om- nipresent in many countries around the world. In the 2 De-industrialisation in Hong Kong 1960s through to the 1980s, Hong Kong was among the Newly Industrialised Economies of Asia supplying tex- The extent of de-industrialisation in Hong Kong is re- tiles, plastic products and to the world market toys flected in the share of manufacturing in employment (Buchholz 1986: 513ff). Now it would be more appro- dropped from 42% in 1980 to 8% in 1997 (Informa¬ priate to refer to Hong Kong as a Newly De-industrial- tion Services Department 1998). Since 1986, the ised Economy, a place where manufacturing decline absolute number of people employed in manufacturing is seen as a problem. The objective of this article is to has also declined (Tab. 1). Despite the negative employ¬ describe the of de-industrialisation in Hong process ment trends, manufacturing has not lost its importance Kong and the policies of industriell promotion, taking for Hong Kong: From «made in Hong Kong», business changes in political and economic conditions into con¬ has turned to «made by Hong Kong» (Berger & Lester sideration. 1997). While workers in the manufacturing industries in The process of de-industrialisation is documented using Hong Kong have been retrenched over the last 15 years, the official industrial employment statistics on the lev¬ new jobs have been created by Hong Kong companies els of both board districts and tertiaiy planning units.
    [Show full text]
  • Hong Kong's Role in China's Future Economic Development The
    ECONOMIC REVIEW(A Monthly Issue) November, April, 20182014 Economics & Strategic Planning Department http://www.bochk.com HongThe Kong’s Reasons Role Why in China’s the Singapore Future EconomyEconomic Has Development Been OutperformingTse Kwok Hong Leung, Kong Head of Economic Research Division Four decades of China’s reform and opening up has created an economic growth miracle. Hong Kong Dai daohua, Senior Economist has seized the opportunity to become the major participator in introducing capital and technology as well as expanding the international market for the Mainland China, with Hong Kong’s companies acting as pioneers Inin many2013, aspects the Hong in the Kong early stage economy of foreign registered investment 2.9% entering real the growth Mainland. and On 4.2% November nominal 12, Presidentgrowth. ItsXi Jinpingper capita summed GDP up wasthe six USD38100. major roles played CCPI by rose Hong 4.3% Kong on in thethe country’s year, and reform the andunemployment opening up in ratea speech averaged to a Hong 3.3%. Kong Meanwhile, and Macao thedelegation Singapore to celebrate economy's the 40th real anniversary and nominal of the growth country’s stood reform at 4.1%and opening and 4.2% up in respectively.Beijing. These rolesIts per include: capita the GDP leading topped role in USD54776. investment and CPI in industry climbed prosperity, only 2.4% the anddemonstration its unemployment of market economy, rate was the only booster 1.9%. for The institutional two city reform, economies the bridge have of different two-way opening-up,economic structures.the pilot place On for thea first surface, try, the referencethe Singapore of urban economymanagement.
    [Show full text]
  • Hong Kong Business Advisory
    July 19, 2021 Hong Kong Business Advisory U.S. Executive Agencies Publish Advisory Discussing Risks and Considerations for Businesses and Individuals Operating in Hong Kong SUMMARY On July 16, the U.S. Departments of State, the Treasury, Commerce, and Homeland Security (collectively, the “Departments”) issued an advisory (the “Advisory”) highlighting what the Departments consider to be the increasing risks businesses, individuals, and other persons face in operating in the Hong Kong Special Administrative Region (“Hong Kong”) of the People’s Republic of China (“PRC”). In light of recent changes to Hong Kong’s laws and regulations, the Advisory seeks to make such persons aware of “potential reputational, regulatory, financial, and, in certain instances, legal risks associated with their Hong Kong operations.”1 CATEGORIES OF RISKS The Advisory identifies four broad categories of risks: (i) risks for businesses following the imposition of the Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region (the “National Security Law”); (ii) data privacy risks; (iii) risks regarding transparency and access to critical business information; and (iv) risks for businesses that engage with, or may engage with, sanctioned Hong Kong or PRC entities or individuals. A. RISKS UNDER THE NATIONAL SECURITY LAW The PRC National People’s Congress Standing Committee passed the National Security Law in June 2020, which established punishable offenses including secession, subversion, terrorist activities, and collusion with a foreign country or external elements to endanger national security. According to the Departments, Hong Kong authorities have arrested individuals under the National Security Law for “publishing newspaper New York Washington, D.C.
    [Show full text]
  • China's Telecommunications Infrastructure Buildup: on Its Own
    This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Deregulation and Interdependence in the Asia-Pacific Region, NBER-EASE Volume 8 Volume Author/Editor: Takatoshi Ito and Anne O. Krueger, editors Volume Publisher: University of Chicago Press Volume ISBN: 0-226-38674-0 Volume URL: http://www.nber.org/books/ito_00-1 Conference Date: June 19-21, 1997 Publication Date: January 2000 Chapter Title: China’s Telecommunications Infrastructure Buildup: On Its Own Way Chapter Author: Ding Lu Chapter URL: http://www.nber.org/chapters/c8488 Chapter pages in book: (p. 371 - 413) - China’s Telecommunications Infrastructure Buildup On Its Own Way Ding Lu In many aspects of its market-oriented reform, China has been moving forward on its own way. The regime’s gradualist, trial-and-error reform defies the big bang approach recommended by some Western gurus for transitional economies. Nevertheless, the Chinese economy has proudly displayed spectacular growth and rising living standards, in sharp contrast to the painful transition in the Eastern European and the former Soviet states. Between 1978 and 1995, China’s economy chalked up an average annual real growth rate of 9.7 percent. The economy grew at double-digit rates for four consecutive years from 1992 to 1995. The uniqueness of the Chinese experience is equally, if not more, im- pressive in the country’s telecommunications industry. Opening of tele- communications markets and privatization of telecommunications ser- vices have become worldwide trends as technological progress redefines the nature of the industry. China’s telecommunications sector, however, remains centrally planned, state-owned, and monopolistic in major service areas.
    [Show full text]
  • Chinese Industrialization & Subsequent Environmental Degradation
    Dickinson College Dickinson Scholar Student Honors Theses By Year Student Honors Theses 5-21-2017 Chinese Industrialization & Subsequent Environmental Degradation Courtney Wojcik Dickinson College Follow this and additional works at: http://scholar.dickinson.edu/student_honors Part of the Agricultural and Resource Economics Commons, Asian Studies Commons, Environmental Policy Commons, Environmental Public Health Commons, and the Growth and Development Commons Recommended Citation Wojcik, Courtney, "Chinese Industrialization & Subsequent Environmental Degradation" (2017). Dickinson College Honors Theses. Paper 256. This Honors Thesis is brought to you for free and open access by Dickinson Scholar. It has been accepted for inclusion by an authorized administrator. For more information, please contact [email protected]. Courtney Wojcik Chinese Industrialization & Subsequent Environmental Degradation Executive Summary China has risen from the subject of Western neo-colonialism to a rising hegemon that is beginning to buck the U.S.’s monopoly of the Asia-Pacific arena. Traditionally, Chinese society spurned the economic elite, Confucian-era businessmen made up the lowest social class. This view promoted by Mao Zedong, who stripped property holders of their assets to transition to a state-led economic system and led the country straight into a severe economic depression. It was only after the reform and opening policies of Deng Xiaoping, that China was able to recognize its economic potential. Since these policies were enacted, China’s impressive economic growth has allowed it to revolutionize its population, transforming its agrarian society into one of the world’s largest consumer bases. However, China’s rapid economic growth has come at a high cost. It’s incredible demand for modernization has caused widespread deforestation, severe pollution and dehydration of waterways, and some of the highest levels of air pollution in the world.
    [Show full text]