Shanghai free Trade Area open game consoles and cloud computing benefits

The General Plan of China (Shanghai) Free trade Experiment area issued by the State Council on September 27 clearly stipulates that some value-added telecom services in particular form are open to foreign capital, involving Internet Information Service, data processing and storage services, call centers and other telecommunications services. The programme does not address the open content of basic telecommunications.

Shanghai FTA is a good springboard for foreign telecom service industry to enter China. "October 9, AI Media Consulting CEO Zhang told reporters that the industry authorities in fact very much hope that through the introduction of foreign investment in the form of the current international cutting-edge technology, management experience, but also to protect the network information security of the reality of consideration," FTA pilot model to help in the practice of gradually groping. "

Limited open space in telecom industry

Shanghai free Trade Area "program" selected the financial, shipping, business, professional services, cultural relics, social services, such as the six major areas of further expansion and opening. As the sixth largest category in the specific open list, value-added telecommunications includes 6319 (other telecommunications services), 6420 (Internet Information Service), 6540 (data processing and storage services), 6592 (call center), etc. in the national economy Industry Classification.

In these areas, foreign enterprises are allowed to operate some value-added telecom services of a certain form, of course, the precondition is "safeguarding Network information security". If it involves breaking the administrative regulations, the State Council shall approve the agreement.

Independent telecom analyst Liang told reporters that according to the current "plan", the opening did not cover the basic telecommunications business, "the three major domestic operators have been established to cover the national communications network, it is difficult to introduce competitors, foreign investors come in is not good to make money."

Under the principle of openness in the field of value-added telecommunications, a number of links have been included in the negative list. According to the Shanghai municipal government issued the "China (Shanghai) Free trade test area Foreign investment access special management measures (negative list) (2013)", Telecommunications, radio and television and satellite transmission services are still restricting investment, radio stations (stations), television stations (stations), radio and television channels (rates), The coverage of broadcast and television transmission is a prohibited investment.

In addition, in addition to the application store, investment in other information services business of foreign investment should not exceed 50% per cent, investment in the domestic Internet virtual private network business of foreign investment should not exceed 50%, in addition to investment in e-commerce, foreign investment ratio must not exceed 55%, The proportion of foreign investment in other online data processing and transaction processing business shall not exceed 50%. This means that foreign investment in the Shanghai FTA will still need to take the form of cooperation and joint ventures with Chinese enterprises.

Included in the scope of the prohibition of investment are: news sites, network audio-visual program services, Internet access services business sites, Internet culture Business (excluding music), network game operations, operating Internet Data center business.

Liang that in the current national regulatory system and network information security considerations, telecommunications and information services industry further breakthrough open more difficult, "there are some do not do, need to use the current economic restructuring and upgrading, expand information consumption and other opportunities to speed up."

"The open content involved in telecommunications and information services is conservative and is a controlled, step-by-side open model." "Zhang that, at least in the short term, the impact on domestic industries will not be too big, the so-called" Chinese Waterloo "phenomenon will not be much changed.

Zhang says liberalising foreign investment restrictions in areas such as app stores will not affect the industry as much, but will give some foreign-application stores direct access to the Chinese market, such as Apple's App store.

Direct impact on Industry inventory

However, Zhang stressed that for foreign-funded enterprises, the Shanghai FTA is still to understand the Chinese market, enter the Chinese market a good springboard, "the Chinese market is big enough." For now, he argues, areas such as gaming consoles and cloud computing will be directly affected.

Hundred-Vision and Microsoft jointly invested 79 million U.S. dollars set up a joint venture-Shanghai Hundred of Information Technology Co., Ltd., on the full use of the Shanghai FTA "program" in the "allow foreign enterprises to engage in game entertainment equipment production and sales" clause. At the same time, gaming and entertainment equipment that is reviewed through cultural authorities can be marketed to the domestic market. In the company's ownership structure, hundred-vision shares 51%, as the controlling party, Microsoft accounted for 49% of the shares. Microsoft's Xbox is expected to use the Chinese gaming machine market that has been banned in Kaifeng for years.

Cloud computing itself is a strong support for Shanghai's emerging industries, in recent years, Shanghai's cloud computing development is also commendable. For example, as early as the end of 2011 on the unveiling of the Shanghai Sea of Clouds Data center, Microsoft in the autumn of 2010, the deployment of Shanghai Cloud Computing Innovation Center, and announced at the end of 2012 will be in Shanghai. For Shanghai, which is committed to becoming the "Asia-Pacific Cloud Computing Center", the FTA offers an important platform to attract domestic and foreign enterprises.

Liang said that according to the current disclosure of the content of the programme, outsourced data processing, storage services, call centers and other service providers will be the main benefit of the industry, which can play our internet talent, software talent, "inexpensive" advantages, providing global services, "This is somewhat similar to the beginning of the reform and opening up in the manufacturing industry, a two model ”。

As a result of the policy traction, the global cloud computing companies will be in the previous Tokyo, Singapore, China, Hong Kong and other areas based on the choice to add a foothold.

Meanwhile, as the negative list of foreign investment in the proportion of provisions, foreign-funded enterprises in the Shanghai FTA in the process, or the need to find local companies to cooperate, joint ventures, which provide Chinese enterprises with opportunities for cooperation, to facilitate local enterprises to learn, improve the management level, technical ability and international competitiveness.

"Simply put, the use of domestic talent for foreign services." "Liang said.

However, Zhang that at present, many of the policy of the FTA is still stipulated the general direction, but also to be specific rules of the introduction and clear, for example, from the trade zone in the rest of the country can be landed service is still unknown, "theoretically is not possible, because the Chinese Internet is a territorial management model."