"Chinese Premier Zhu Rongji said March 15 that China will go ahead with its introduction of Code Division Multiple Access (CDMA) mobile telecom systems, while continuing to use GSM technologies.
"Zhu made the remarks at a press conference shortly after the conclusion of the Third Session of the Ninth National People's Congress. He dismissed as "untrue" reports by certain foreign news media that China would stop introducing CDMA systems.
"Also, Zhu said that the State Council has entrusted China Unicom, a major telecommunications company, to take charge of all relevant purchasing details.
"China Unicom has recently initiated a bidding for the purchase, which calls for more coordination with the Ministry of Information Industry and the State Development Planning Commission, Zhu said.
"The purchase issue will be settled before long, with completion of necessary procedures, he said.
"In response to a question on the participation of private enterprises in the telecom sector, the premier said that as China allows foreign investors to engage in the development of its telecom sector, it will naturally permit domestic private firms to enter into the field.
"At the same event, Zhu said that China will soon resolve the issue of CDMA cellular telephone operations run by the Chinese army. He made the remark in response to a question on whether the Chinese military would become the third mobile telephone operator in the country.
"Zhu said the Chinese government is now studying ways to allow continued cooperation between the People's Liberation Army (PLA) and commercial operators on the development of the CDMA system, a new generation of mobile telephony, and ways to meet the PLA's needs for mobile telecom services.
"Zhu noted that the PLA has conducted joint trial operations of CDMA systems in four cities, together with China Telecom. However, the Central Military Commission (CMC) has decided that the PLA must cut the links with enterprises under its control and that the PLA cannot be involved in any commercial activities or run any enterprises.