Thursday, August 04, 2005

LexisNexis(TM) Academic - Document

Financial Times (London, England)

August 4, 2005 Thursday
London Edition 1

SECTION: ASIA-PACIFIC; Pg. 7

LENGTH: 458 words

HEADLINE: Beijing moves to curb foreign involvement in media market

BYLINE: By MURE DICKIE and FRANCESCO GUERRERA

DATELINE: BEIJING and HONG KONG

BODY:


China propaganda tsars have moved to defend "national cultural security" by ordering tighter controls on foreign involvement in the media market.

New rules on "cultural imports", announced in an article carried by the People's Daily, mouthpiece of the ruling Communist party, underline Beijing's recent cautious approach to opening an industry it sees as a political bulwark.

The rules forbid "in principle" the granting of permission for any more foreign television channels or the issuing of new licences for companies to handle cultural imports, areas in which foreign companies are already allowed only minimal access.

But the main significance of the regulations, issued by the party's propaganda department and five media-related government ministries and administrations, is to add weight to Beijing's recent conservative line on further media opening. China has in recent years sought to encourage foreign and private investment in the domestic media industry, which it hopes to make into a pillar of the national economy.

Last year, broadcasting regulators issued rules allowing foreigners to invest in joint venture television production companies for the first time, while some state newspapers were told they could list their commercial operations overseas.

But this year Beijing has tightened its limits on production joint ventures and officials are widely seen as moving more slowly to approve investments - to the disappointment of international media groups who are keen to play a role in what is a huge potential market. "Things have slowed down significantly," said a Hong Kong-based investment banker. "Our impression is that the government has become more conservative and more concerned about foreign interest in the media."

International media groups such as Viacom and News Corp have worked hard for years to cultivate Beijing's favour, but have so far won only limited room to operate in China and are still subject to tightly curtailed landing rights for their TV channels. The renewed caution on media opening comes against a backdrop of increased efforts to crack down on political dissidents, rein in Chinese journalists and strengthen censorship of the internet. Analysts say such moves reflect the determination of Hu Jintao, president, to head off any threat to his authority or party rule.

Beijing sought to soften the impact of the call for tighter control by also billing it as aimed at ensuring "protection of intellectual property rights and raising the level of opening to the outside world".

But the content of the rules as revealed by state media made clear the emphasis on controlling unwelcome content. They said controls on TV imports should be strengthened.

Additional reporting by Francesco Guerrera in Hong Kong

LOAD-DATE: August 3, 2005

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