On December 11, 2001, China was officially accepted into the World Trade Organization (WTO). By joining the WTO, China has committed to open many sectors to foreign direct investment, including telecommunications services, insurance services, and banking services. The openness to foreign investment will be a gradual process and will take years to accomplish.
Taking telecom services as an example, according to the agreements, China will retain its majority control by setting the foreign investment cap at 49%.