Foreign internet firms must tie with Chinese companies

Now the only permissible way for overseas organisations and individuals to provide Internet mapping services in China is to set up joint ventures.

PTI | June 9, 2011



Beijing, June 8 (PTI) China, which has launched its own internet mapping services this year to rival Google's Earth Maps has made it mandatory for overseas web companies to operate mapping services only through a tie up with Chinese companies.

The only permissible way for overseas organisations and individuals to provide Internet mapping services in China is to set up joint ventures, a notice issued by the State Bureau of Surveying and Mapping said.

The notice cited a regulation on overseas organisations and individuals that offer online mapping services.

This regulation has been in effect since April 27, 2011, official Xinhua news agency reported.

The regulation also states that, for joint ventures with Internet mapping as their sole business, investment by foreign investors shall be limited to no more than 50 percent of the total investment.

According to the notice, the amended regulation sets a stricter criteria for market entry which helps tighten up the rules governing the Internet mapping service market.

As the Internet mapping service market is developing rapidly, a lot of problems are surfacing, such as confidential geographic information being marked on maps, and maps showing no respect for China's territorial integrity, reads the notice.

The amended regulation also clarifies requirements for overseas companies and individuals surveying China's territory.

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