Telecommunications and the Internet in Shanghai: Political and Economic Factors Shaping the Network in a Chinese City

Abstract

This paper examines the ways in which the Shanghai municipal and Chinese central political leaders have shaped the development of telecommunications and Internet growth in China's most populous city over the past two decades. It assesses the ways the local and national authorities have co-ordinated funding from municipally backed corporations, state-owned enterprises and foreign investors, and their efforts to build rapidly major telecommunications and data networks. It concludes that the municipal and national leaders have effectively employed policies to give the city a powerful base of telecommunications skill and infrastructure. However, future growth of the sector is likely to depend on a smaller government role and greater participation by foreign corporations and private Chinese enterprises.