Under a new policy that aims at protecting its reputation, China has decided to limit the broadcasting of Internet videos to sites run by state-controlled companies. The country's new policy includes Internet videos posted on video-sharing websites and requires video providers to report questionable content to the government.According to the new regulations, websites need to get government permits so that they could be able to provide video programming or allow users to upload video. Applicants also must be either state-owned or state-controlled companies. This contrasts with the majority of Internet video providers in China, which are private.
Both the State Administration of Radio, Film and Television and the Ministry of Information Industry agreed the new regulations under which Internet video providers "should insist on serving the people, serve socialism ... and abide by the moral code of socialism." The rules interdict providers to broadcast video that involves national secrets, disrupts social stability or promotes pornography.
There are sill questions regarding the status of sites such as YouTube, a subsidiary of Google Inc. (NASDAQ: GOOG) or Tudou.com, which claims to be China's largest video sharing Web site.
The effect of Chinese laws on American Internet companies operating in the country came after Yahoo Inc. (NASDAQ: YHOO) has settled a lawsuit with two Chinese journalists, Shi Tao and Wang Xiaoning, who were jailed for ten years after the Internet company provided Chinese authorities with information about their online activities. The two Chinese journalists wrote anonymous e-mails promoting democracy and challenging Communist authority.
Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.
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