Before 1993, China’s post and telecom services were unitedly operated by the Ministry of Posts and Telecommunications and its subordinate provincial Posts and Telecommunications Administrations (MPT/PTAs).

According to the “Decision on State Council Restriction”adopted by the People’s Congress in 1998, China decided to establish a Ministry of Information Industry (MII) based on the principle of separating government and business functions, and to speed up the telecom reform at the same time. The MII was a merge of the MPT and the Millistry of Electronic Industry (MEI). The former China Radio Administrative Office and the Office of Informatization Leading Group of State Council became functional departments of the MII. In the same year, post operation and telecom business were separated nationwide. China Telecom Company was set up to operate telecom services, while the China Post, which was later affiliated to the MII, continued to operate and manage the national postal services. The establishment of MII enhances the functions of planning and guidance, macro-regulation, legal supervision and information service and weakens the functions of administrative orders, direct intervention and micro-management.

In September 2000, the “Telecom Regulations of The People’s Republic of China” was promulgated by the State Council, which serves as a legal foundation to manage telecom competition in the absence of a Telecom Law. According to the regulation, MII established its local Communication Administrations in 31 provinces. The two-tier telecom regulatory system

thus was taking shape.

Now, MII is a ministry that takes charge of China’s information industry under the leadership of the State Council. It has the same status with other 28 ministries and commission, General Office of the State Council, special institutions of the State Council, 18 institutions directly under the State Council, four functional institutions and 14 public serving units directly under the State Council. That is to say all of them are under the direct leadership of the State Council.

Besides, other government organizations also take part in the administration of the communication industry. For instance, the State-owned Assets Supervision and Administration Commission (SASAC) appoints and dismisses the leaders of telecom companies, corporate reform and restructuring and the establishment of corporate systems; the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC) determine the investment directions of foreign investors; financial and price authorities take part in the formulation of telecom pricing policies and supervise their implementation.