In an international context,China presents an interesting case study.China's unique macro economic and political system has undergone a series of reforms which have thoroughly affected changes in the telecommunications sector,and have made it necessary for China to adopt a special strategy in telecommunications reform.Being the fastest-growing and largest prospective market,Chinese telecommunications sector has been the focus of the telecommunications world.But a systematic analysis of Chinese telecommunications reform is still missing.Some scholars have focused on specific parts of the fundamental change,such as the Internet (Tan,1999).Mueller and Tan's work (1997) presents a scholarly examination of China's economic reform in the telecommunications sector.But some changes,such as the 1998 reform,are not included in the analysis.This paper aims to fill in this gap.Specifically,this paper tries to elucidate Chinese telecommunications reforms from a macro perspective.It will lead to conclusions on how telecommunications reform has been successfully carried out in China,and why progress has been achieved in such a specific manner,and propose an understanding of how China has promoted telecommunications reform by practically handling macro restrictions.To do this,we will first examine the macro background of Chinese telecommunications reform.We will then investigate the regulatory reform of China's telecommunications sector in the context of macro reform.We will also analyze the market structure changes that were hindered by the tardy reform at regulatory regime and macro level.Finally,we highlight Chinese features in the telecommunications reform,and analyze the future prospects based on a discussion of macro environment dynamics.