According to government document published by Xinhua News Agency
on August 2, foreign investors can only build and operate cinemas
and performing arts agencies conditionally, and are banned from
setting up or running news organizations in China, and no new
licenses will be issued for foreign TV channels.
The document was jointly worked out by five ministries including
the Ministry of Culture and State Administration of Radio, Film and
Television, in a bid to safeguard the county's culture industry and
ensure the industry's healthy development.
The document prohibits foreign investors from establishing or
running news organizations, broadcasting stations, TV stations and
film manufacturing companies, performing troupes, and film import,
export and distribution businesses.
The new ruling also forbids foreign investors from undertaking
businesses such as book and magazine publishing, wholesale and
imports. Neither can foreign investors enter the publication field
under the guise of book distribution, printing, advertising and
cultural facility reconstruction.
Meanwhile the government lowered the admission standards in
certain areas. Foreigners can build Chinese-foreign cooperative
enterprises and Chinese-foreign joint ventures of packaged material
printing, book and magazine distribution and artwork sales.
But it stipulates that the Chinese partner's investment share
should not be lower than 51 percent and the Chinese party should
take the leading role in the running of the business. Only by doing
so can foreign partners build and run theaters, cinemas, and
brokerage companies.
The document also states that no new licenses will be issued for
foreign TV channels.
China "will not allow another foreign satellite TV station to
have landing rights in the country," Xinhua said, citing the rules
from domestic regulators.
Regulators said the new rules were designed to strengthen any
oversight by the industry while the government "finds ways to
regulate (existing foreign media in the market) to prevent harmful
programs from being broadcast."
Foreign players with mass broadcasting rights now in China
include Rupert Murdoch's News Corp., Viacom's MTV and News Corp.--
backed Phoenix Satellite Television Co. Ltd., all of which
broadcast in Guangdong.
Tom Group Ltd., controlled by Hong Kong's richest businessman,
Li Ka-shing, also owns a station with mass broadcast rights in
Guangdong with Time Warner Inc.
Overseas players with limited broadcasting rights in the market
include Time Warner's CNN and the BBC news channels, and various
channels owned by News Corp.'s Star TV subsidiary.
The ban on new stations in the market is expected to have the
most immediate impact on Disney, which applied for a limited
broadcasting license in 2003 and is one of the few major media
companies in the market without a channel, observers said.
Viacom's Nickelodeon children's channel also applied for a
limited broadcasting license in 2003. Their application could also
be affected.
Disney and Viacom had no immediate comment.
China's television and film regulator announced in April that
all media companies would be limited to a single programming joint
venture, in a move that appeared directed at Viacom, which had
announced several partnerships.
Last month, the regulator followed with more regulations banning
city and provincial broadcasters from cooperating with foreign
media companies.
(Xinhua News Agency, Shenzhen Daily August 5,
2005)
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