State media outlets in China are attached to government agencies at various administrative levels, but they are also profit-seeking businesses. Their dual role means that they are state-owned but financially supported by advertising. They have enjoyed certain privileges by virtue of their status, but the government may now be considering cutting them off.
Today’s China Youth Daily reports that the General Administration of Press and Publication, the national media regulating body, has declared: “By the end of 2010, all for-profit news media and publishing entities will be decoupled from the government institutions they are affiliated with and transformed into separate companies. The government will no longer place restrictions on them in terms of ISBN numbers, publication licenses, and content.”
According to earlier reports, party publications like the People’s Daily and major presses like the People’s Publishing House will not be touched by the reform.
The government hopes that the reform will result in the emergence of “six or seven internationally-recognized press and media companies that are domestic leaders with assets and sales each over 10 billion yuan.”
These reforms have been discussed before: a commentary published in 2005 talking about the media’s resistance to such changes is still available on Xinhua’s website.
- China Youth Daily (Chinese): For-profit news media entities will be transformed into companies by 2010
- Youth Journalist (Chinese): Media reform: building a modern enterprise system is key