Media Industry in China

A number of regulatory agencies combine to control tightly China's print and broadcast media. The General Administration of Press and Publication (GAPP) licenses and closely monitors publications, including newspapers, periodicals, books, and Web sites. GAPP is assisted by the General Administration for Customs, which confiscates publications deemed "harmful to the government." China's State Administration of Radio, Film, and Television (SARFT) regulates radio, television, satellite, and Internet broadcasts, in conjunction with the Ministry of Information, which retains responsibility for control of the telecommunications and software industries and Internet content provider licensing. The Ministry of Public Security is responsible for general regulation of Internet access. The State Secrecy Bureau classifies state secrets, which all citizens are required to "safeguard." Finally, the Central Propaganda Department ensures that Chinese publishers print only material consistent with the Communist Party's ideology; the Department uses directives, screenings, and training sessions for publishers and their employees to accomplish this goal. With all these ministries and bureaus it has been very difficult for foreign investors to enter into the Chinese market.

In January 2005, HBO Asia signed a deal with China Central Television (CCTV) to air selected programs and movies on the State-owned broadcaster's subscription-only channel First Theatre. The agreement was needed for the digital channel, which has attracted few viewers since its launch in 2004. More importantly though, the deal represented a further move into the Chinese TV broadcasting industry by Time Warner, joint owner of HBO Asia and one of the most active of the many foreign media companies currently looking for a foothold in the mainland market.

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