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British Telecom

seeks China

business

BEIJING: A British Telecommunications Plc delegation arrived in Beijing on Wednesday to explore opportunities for expansion in China, a company official said.

The visit had no connection with a proposed merger between BT and Britain's Cable and Wireless Plc, said Dong Jianming of BT's Beijing office.

Analysts have said Beijing holds the key to the merger because of its role in regulating Hong Kong Telecommunications Ltd. C&W holds a 57.5 percent stake in HK Telecom.

"This visit was planned three months ago, so it has nothing to do with the merger," Dong said.

BT would need to get explicit acceptance of the merger from Chinese regulators to clarify HK Telecom's operating licence in Hong Kong, which requires C&W to retain control of the company, a Salomon Brothers analyst in Hong Kong said on Wednesday.

Chinese approval "will not be discussed during this visit", Dong said.

The BT delegation, led by Deputy Chief Executive Officer Alan Rodge, is expected to meet officials of the Ministry of Posts and Telecommunications and China United Telecommunications Corp during the three-day visit, Dong said.

China's telecommunications market was still largely closed to foreign companies, Dong said, but added prospects for the future were good.

"We are interested in things like data service" he said but gave no details of specific projects.

Dong said BT was also expected to participate in a delegation of over 200 business leaders led by Britain's Deputy Prime Minister Michael Heseltine, who is scheduled to arrive in China on May 17.-Reuter