There are still concerns about the persistence of some regulations that act as a strong break on capital flows into the industry and slow development of the Internet and telecommunications as economic drivers in China. In the Internet environment, the government currently requires all businesses with an Internet site to register their encryption software, and Chinese companies are prohibited from buying overseas-designed encryption software. New rules for Chinese Internet content providers mean they must seek government approval for joint or co-operative ventures with foreign companies. All Internet and telecommunication companies must also apply for licensing from the government.
