Sweeping bans on foreign businesses unlikely
The newly-released rules on online publishing are not likely to impose a sweeping ban on all foreign-invested businesses in China as some had feared, observers said Monday, stressing that the regulation which takes effect on March 10 is aimed at tightening online publishing management and protecting Chinese creative works.
Jointly issued by the State Administration of Press, Publication, Radio, Film and Television (SARFT) and the Ministry of Industry and Information Technology on February 4, the Regulation for the Management of Online Publishing Services aims to set new guidelines on what content can be published online, and who is qualified for this business.
In Article 10, the regulation clearly stipulates that "Chinese-foreign joint ventures, Chinese-foreign cooperative ventures and foreign business units should not engage in online publishing services."
It later says that [eligible] online publishing services must seek approval from SARFT before cooperating with the above-mentioned organizations or overseas institutions or individuals.
The online publications include images, games, animation and audio recordings and videos, according to the document.
The regulations indicate a strong desire from the government to tighten its control over the industry, as well as protect local creative works, said Cui Baoguo, a professor with the School of Journalism and Communication at Tsinghua University.
Though many foreign firms fear the new regulations may deter them from exploring China's large online publication market, some observers believe that it is too early to make any assumptions about the results.
"The new regulations don't reveal details about what type of content and which organizations will be affected, as well as how long and how much effort the government will make to enforce it, so its impact on both China's online publication industry and foreign companies' business in China is unpredictable," Zhu Wei, deputy director of the Research Center of Law of Communications at the China University of Political Science and Law told the Global Times.
Inquiries to foreign companies Apple, Amazon and image service provider Corbis over the possible impact of the regulation have received no response. Digital forms of books are still readily available on Amazon's Chinese website Amazon.cn.
An official from the Ministry of Industry and Information Technology told the Global Times on Monday that the new regulations can only be explained by SARFT, which could not be reached as of press time.
Starting March 10, the new regulations will replace the Temporary Regulation on the Management of Online Publishing of 2002.
Misinterpretation
"Though much more detailed, the new regulations with a total of 61 articles are not so much different from their 30-article predecessor. The reason why it drew so much attention from foreign media is because of the misinterpretation of its Article 10," Zhu said.
Wang Sixin, a media law professor at the Communication University of China said the new regulations do not exclude foreign companies from participating in China's online publication services through cooperation with Chinese online publishers.
"It stipulates that only Chinese companies can take the initiative, and the government should have access to supervise the industry," Wang said. "The main purpose is not to suppress foreign companies in China, but to safeguard the nation's ideology."
At the opening of the second World Internet Conference in December, 2015, President Xi Jinping said China firmly opposes Internet hegemony, foreign interference in internal affairs and incitement that could threaten national security, adding that the Internet is not beyond the law and it should be ruled in accordance with a country's laws and regulations.
"Unlike traditional publishing, once harmful materials are published online, it's impossible to supervise or control them. The new regulations will nip such possibilities in the bud and will help the government to better supervise foreign cultural products," Zhu said.
Apart from that, the regulation shows the government's determination to protect original works and local online publishers, Zhu said.
"Compared to developed countries, the Chinese film and anime industry still lacks competitiveness due to a late start and insufficient resources, so the new regulations will strongly support domestic online publication industries and avoid unfair competition," Zhu noted.
No 'clean cut'
Though it's unclear what kind of organizations or content will be affected by the new regulations, observers believe that "a clean cut" on foreign companies is very unlikely.
According to Wang, the new regulations are unlikely to affect foreign news organizations in China, as most global news outlets are published on servers outside China and are not technically categorized as "online publishers."
"The regulation is not a law, but merely a transitional provision. By tradition, the government will issue detailed rules later to better implement the regulations. A clean cut on foreign companies will damage China's international image, as well as its cultural industry," Zhu said.
