China's Media Clampdown: Going Back on Past Promises?

By Gregory Sy, Lehman Lee & Xu, Beijing

Historically, Chinese media has acted principally as an organ of the state and only recently became a source of revenue. This is due largely to the fact that the media continues to be, primarily, state-run and subject to government censorship. All forms of media are subject to the supervision from the State Administration of Radio, Film and Television (SARFT) or related administrations at various levels. Media is, and always has been, regarded as a means of mass propaganda and to serve as a source of social education. For years, China's media industry has essentially remained off-limits to foreign companies but is now becoming more liberalized. Beginning in the early 1990s, rapid legislative and industrial reforms have been introduced transforming the PRC media industry. Foreign investors are now eagerly searching for investment opportunities in the market, with increasing demand for foreign films, media technology and television programs. However, while China as a whole has become increasingly investor-friendly, its media sector still remains highly-regulated and restricted.

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