LONDON (Brand Republic) - Rupert Murdoch鈥檚 News Corporation is being allowed to flout Chinese law by taking a 12.5% stake in China Netcom. Foreign companies have until now not been allowed to own any part of the country鈥檚 telecoms network.
News Corporation is jointly investing in China Netcom -- which is building China鈥檚 first broadband network -- with investment banker Goldman Sachs and two other banks.
The Chinese government is trying to change the law preventing foreign companies investing in the telecoms network in order to join the World Trade Organisation, but changes are not expected for at least another year.