Datang Telecom Technology Group might receive CNY4 billion from China's State-owned Assets Supervision and Administration Commission of the State Council for the company's internal reforms.
Datang Group is heading 3G growth in China and now has nearly 10,000 staff. Because China Telecom will begin its large TD purchases in March, it will lead to competition in the TD sector. Datang Telecom, which is mainly focused on TD, is facing great pressure and needs an infusion of capital in order to compete.
The cash will help Datang Group rejuvenate its subsidiaries Datang Telecom and Datang Mobile and lighten their debt load.
This investment also shows the SASAC is supporting national-level TD programs, which might make foreign companies complain that they are not able to compete in a fair market when Datang has government help.