The company will be based on the existing distribution union which China Newspaper Association (CNA) members set up last July, according to Lian Fuying, senior CNA official.

CNA, a 1,500-member organization, has handed in the proposal to the State Council for approval. If successful, the company will be established in the last six months of 2002.

With the joint distributor, CNA hopes China's newspaper industry will become more efficient and competitive in the face of overseas competition.

One who is keen on China's huge market is Rupert Murdoch. His American Online (AOL) has started a 24-hour Chinese-language service in south China's Guangdong province on Chinese Entertainment Television (CETV), becoming the first foreign broadcaster to air in China?s mainland.

Citing Murdoch's far-reaching distribution network as one reason for his penetration of the Chinese market, Lian said, "Distribution is where the Chinese media industry should improve." "Rather than separate networks, China needs stronger distributors," Lian said.

China's newspaper distribution channel has long been controlled by the postal system. To break its monopoly, more than 1,000 newspapers have developed their own channels of distribution.

(eastday.com March 23, 2002)