Challenges to the MPT's monopoly

The impressive progress of economic reform and development in the People's Republic of China is raising many issues concerning the current policy and institutional framework of Chinese telecommunications. A political coalitions has been formed to challenge the current monopoly and to try to bring about a more competitive telecommunications policy. There are also internal centrifugal forces which are making it difficult for the Ministry of Posts and Telecommunications (MPT) to maintain its exclusive hold on the sector. The MPT's three major functions, of policy and regulation, service provision, and equipment production, are all being challenged by other players in telecommunications. This paper analyses these trends and attempts to identify the forces driving the liberalization process. It contrasts developments in China with theories about the liberalization process derived from experience in other countries.