China agrees to high-tech foreign investment

The US and China yesterday signed an accession agreement which paves the way for foreign investment in China's burgeoning telecoms and Internet market. The deal, thirteen years in the making, should allow China's entry into the World Trade Organisation as early as next year.

The deal was negotiated by US trade representative, Charlene Barshefsky, and Chinese Trade Minister, Shi Guangsheng. US President, Bill Clinton, said the deal is "good for the US, good for China, and good for the world economy".

The deal opens up China's markets for foreign investment and trade, lowering import tariffs and relaxing legislation. China will allow 49 per cent investment in joint ventures in the telecoms and Internet markets - markets that have been hit recently by insecurity over China's intentions on foreign participation.