China tightens controls on foreign news

President Hu Jintao's leadership has sought to rein in state-controlled media that have strayed from party dictates in search of profits and market share. Journalists and editors have been fired and arrested.

At the same time, Xinhua has been trying to transform itself from an agent of stodgy government propaganda into a worldwide competitor. The agency, founded in 1931 as the Red China News Agency, is trying to build a financial news service and has been trying to leverage Beijing's hosting of the 2008 Olympics to boost its sports coverage and photo services.

"We must also learn, borrow and make use of anything that is advanced, and beneficial to us, the aim being our own growth and expansion," Xinhua's head, Tian Congming, said according to the text of a speech given at a closed-door meeting earlier this year. "Only thus, can we truly hope to find the entry point for leapfrogging growth."

As part of its new powers, Xinhua also will police the distribution of news in the mainland by agencies from Hong Kong, a former British colony now ruled by China but that operates under separate laws and with a free press. It also affects agencies in Taiwan, which Beijing claims but does not control.

Under the rules, any reports that disrupt "China's economic and social order or undermine China's social stability" will be banned as will news that undermines the country's "national unity, sovereignty and territorial integrity," Xinhua said.

The rules issued by Xinhua made no specific mention of foreign distribution of Internet or video news content, although such activities are restricted under other guidelines.

China has long sought to limit foreign distribution of news inside the country while exercising harsh limits on domestic media that are often arbitrarily enforced by vaguely worded state security rules that mandate harsh penalties, including long prison terms, for violations.

The new rules appeared designed to end any uncertainties over the government's determination to prevent foreign news businesses from operating in the Chinese mainland.

"Foreign news agencies shall not directly solicit subscription of their news and information services in China," it said.

Xinhua said the rules were meant to "promote the dissemination of news and information in a sound and orderly manner."

Other news banned by the rules includes information that may "endanger China's national security, reputation and interests," violate "China's religious policies or preach 'evil cults' or superstition," or "incite hatred and discrimination among ethnic groups" or undermine their unity.

Also forbidden is "other content banned by Chinese laws and administrative regulations," it said.

"Xinhua News Agency has the right to select the news and information released by foreign news agencies in China and shall delete any materials mentioned in the items above," it said.

Xinhua said any violation would be met with a warning and it would "demand rectification within a prescribed time limit, suspend its release of specified content, suspend or cancel its qualifications for releasing news and information in China."

The rules impose "disciplinary penalties" on staff members who violate such restrictions, it said.

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