In brief: media law and regulation in China - Lexology https://www.lexology.com/library/detail.aspx?g=a9673881-7013-414a-...

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In brief: media law and regulation in China

Simmons & Simmons

China June 24 2021

Media
Regulatory and institutional structure
Summarise the regulatory framework for the media sector in your jurisdiction.
In China, the media sector is heavily regulated. The key regulators are the National Radio and Television
Administration (NRTA) and the State Administration of Press and Publication (SAPP), which were established in
2018 and replaced the original State Administration for Press, Publication, Radio, Film and Television (GAPP) and
the Cyberspace Administration of China (CAC). Some functions and powers of these authorities overlap.
The NRTA has a broad authority to regulate business involving both traditional media and digital media. In
particular, it has the authority to:
• approve the establishment of television and radio stations and to regulate television and radio broadcasting
activities under the Administrative Regulation of Radio and Television issued by the State Council, effective
in 1997 and last amended in 2020;
• approve the establishment of cable television stations, cable television programmes and to regulate the cable
television broadcasting activities under the Interim Measures for Cable Television Management issued by
State Council, effective in 1990 and last amended in 2018;
• regulate the creation, production, distribution and public display of films within the territory of China,
including the approval of cooperation with foreign parties, under the Film Industry Promotion Law, which
took effect in 2017 and the Administrative Regulation of Films issued by the State Council and effective in
2002;
• approve and regulate the downlinking of foreign satellite television programmes under the Administrative
Regulation of Receiving Foreign TV Programs by Satellite Ground Receivers issued by the State Council,
effective in 1990 and last amended in 2018, and the Administrative Measures of Foreign Satellite Television
Channels issued by the NRTA and effective in 2004;
• regulate the Chinese presence of foreign radio and television agencies under the Administrative Provisions on
the Chinese Establishments of Foreign Radio and Television Agencies issued by the NRTA and effective in

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2004; and
• regulate the information services on the internet under the Administrative Regulation of Internet Information
Services by the State Council, effective in 2000 and amended in 2011.

The SAPP has the authority to:

• regulate the business of publication, production, importation, wholesale, resale and lease of audio and video
products under the Administrative Regulation of Audio and Video Products issued by the State Council,
effective in 2002 and last amended in 2020;
• approve the establishment of printers and to regulate the printing business under the Administrative
Regulation of Printing Business issued by the State Council, effective in 2001 and last amended in 2020;
• approve the establishment of publishers and to regulate the publication and distribution of domestic
publications and import of foreign publications under the Administrative Regulation of Publication issued by
the State Council, effective in 2002, and last amended in 2020;
• grant licences to news publishing organisations under the Administrative Measures on News Publishing
Licences published in 2016 and amended in 2017; and
• regulate the registration of news reporters under Administrative Measures on News Reporter Certifications
issued in 2009.

The CAC has the authority to regulate various forms of social media services and information services on the
internet, such as microblogging, online news, online forums and communities.
The activities of the Chinese offices and correspondents of foreign news agencies are regulated by the Ministry of
Foreign Affairs and the State Council Information Office, under the Regulation on News Coverage by Resident
Offices of Foreign News Organisations and Foreign Correspondents issued in 2008.
Ownership restrictions
Do any foreign ownership restrictions apply to media services? Is the ownership or control of broadcasters
otherwise restricted? Are there any regulations in relation to the cross-ownership of media companies,
including radio, television and newspapers?
In China, foreign investment in the media business is prohibited.
Foreign investors are not allowed to invest in the following types of business in China, according to the Negative
List on foreign investment published in June 2020:
• news organisations (including but not limited to news agencies);
• editing, publication or production of books, newspapers or other publications;
• editing, publication or production of audio or video products or any other e-publications;
• construction or operation of radio or television stations or facilities used for transmitting radio or television
programmes;
• radio or television video-on-demand business and construction of facilities on receiving foreign television
programmes by satellite ground receivers;
• production, operation and import of radio or television programmes;

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• film production or film distribution companies, cinema chains or import of film; and
• internet publication or provision of audio, video, news reports or other cultural products online.

Also, under the Negative List, foreign investors are not allowed to acquire a controlling interest in publication
printing companies.
Licensing requirements
What are the licensing requirements for broadcasting, including the fees payable and the timescale for the
necessary authorisations?
Different licensing requirements apply in relation to each type of programme and the medium through which it is
transmitted.

Radio and television licensing

Radio and television stations may only be established by relevant governmental departments above the county level.
Permits of radio or television stations are granted by the NRTA. Only the central and provincial level television
stations are allowed to transmit their programmes via satellite. Cable television network operators are required to
file with provincial-level branches of the NRTA.
Permits from the NRTA are also required for establishing a radio/television programme production company. The
application is open to domestic legal person entities only.

Satellite television licensing

The installation of satellite-receiving equipment (to receive television programmes transmitted by foreign satellites)
requires a permit issued by NRTA only to entities involved in education, scientific research, news, finance,
economic and trade that need to receive satellite programmes for business reasons, hotels rated three-star or above
and owners of residential or office buildings for foreigners. The following permits are required to broadcast or make
available video and audio programmes via the internet:
• a permit to transmit video and audio programmes through an information network from the NRTA; and
• an internet information services licence (being a type of value-added telecoms services operational licence)
from the Ministry of Industry and Information Technology (MIIT).

Online broadcasting licensing

Any company that intends to provide an internet audiovisual programme service must obtain a licence for
transmitting video and audio programmes via an information network from the NRTA. A permit must be obtained
from the NRTA for video-on-demand services.
Video-on-demand programming is subject to the same content review requirements as television programming and
must consist of mainly domestic programmes.
Online broadcasting may also constitute a ‘commercial internet cultural activity’, which requires a permit obtained
from provincial cultural regulators. Import of foreign ‘internet cultural products’ (ie, cultural products produced,

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spread or distributed via the internet) is subject to content review by the Ministry of Culture and Tourism.

Radio station licensing

Radio stations are also subject to a licensing regime administered by a bureau of the MIIT. Provincial radio
management bureaux are responsible for licensing stations that have a broadcast range limited to one province. If
the broadcast range covers more than one province or crosses a provincial border, then the licence must be issued at
the national level.
These rules and regulations are silent on the fees payable and time scale for licensing. Generally speaking, in
practice, no fees are required for the filing of an application and the time required for processing each type of
application varies.
Foreign programmes and local content requirements
Are there any regulations concerning the broadcasting of foreign-produced programmes? Do the rules
require a minimum amount of local content? What types of media fall outside this regime?
Foreign television programmes include films and television dramas and animated programmes, and other
programmes of an educational, scientific or cultural nature. A maximum of 25 per cent of a broadcaster’s daily
airtime for films and television dramas may be allocated to foreign-produced films and television dramas.
Foreign-produced films and television dramas may not be broadcast during prime time (7pm to 10pm). The
permissible airtime for other foreign television programmes may not exceed 15 per cent of a station’s total
broadcasting time per day.
Locally produced programmes in foreign copyrighted models are also subject to airtime restrictions. Each satellite
television channel may air up to two programmes in foreign copyrighted models during prime time (7.30pm to
10.30pm) every year. Also, each satellite television channel is allowed to air only one new programme in a foreign
copyrighted model every year, and the show shall not be aired during prime time (7.30pm to 10.30pm) during the
first year.
Advertising
How is broadcast media advertising regulated? Is online advertising subject to the same regulation?
The Chinese Advertisement Law (the Advertisement Law), which was last amended in 2021, is the primary
legislation on advertising in China. It contains the principal rules for making commercial advertisements in China.
These principal rules include that the content of commercial advertisements shall:
• be true and contain no false or misleading information;
• be healthy and fit for Chinese culture, and respect public interest in China;
• be recognisable as an advertisement; and
• not devalue competitors’ goods or services.

Under the Advertisement Law, several administrative measures are enacted to set out detailed rules for advertising
concerning pharmaceuticals, medical devices, food, health foods, animal remedies and agricultural chemicals.
The Administrative Measures for Broadcasting TV and Radio Advertisement issued by the GAPP (now NRTA and
SAPP), effective in 2010 and its supplementary provision, effective in 2012, set out specific rules on broadcasting

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television and radio advertisements. These specific rules include:

• the broadcasting of advertisements must not affect the integrity of the broadcasting of television and radio
programmes;
• the length of the advertisements must not exceed 12 minutes per hour except that, during peak times (being
11am to 1pm and 7pm to 9pm);
• the length of the advertisements must not exceed 18 minutes per each programme;
• the broadcasting of advertisements must respect public interest, for instance, advertisements for
pharmaceutical products or medical devices for skin diseases, haemorrhoids, urination diseases, etc, must not
be broadcast during lunch or dinner time; and
• radio and television stations must make channels for the audience to report on illegal or improper advertising
available.

Moreover, the Chinese Internet Advertisement Measure (the Internet Ad Measure) came into effect on 1 September
2016 and covers specific issues concerning posting advertisements online. Under the Internet Ad Measure, the
following advertising activities are restricted:
• advertising on the internet must be recognisable and, in particular, paid search engine advertisement must be
separate from ‘natural’ search results;
• the posting of advertisements must not interfere with the normal internet browser, including, in particular,
pop-up advertisements or the like must clearly show the ‘shut-down’ button and be capable of being shut
down in one click;
• no advertisement is allowed to deceive users into clicking on a link; and
• including an advertisement in an email without permission from the sender is prohibited.

Additionally, the following activities are not allowed:

• blocking, screening, covering or fast-forwarding advertising duly displayed by others by using applications,
devices, etc, or to provide facilities for the same;
• replacing others’ advertisements with their own advertisements via networks, devices, applications, etc; or
• gaining unfair benefits or infringing others’ interest by using false statistics or giving out incorrect price
quotes.
Must-carry obligations
Are there regulations specifying a basic package of programmes that must be carried by operators’
broadcasting distribution networks? Is there a mechanism for financing the costs of such obligations?
Yes, the Interim Administrative Measures on the Operation and Services of Cable Radio and Television, as last
amended in 2021, set out the following rules:
• cable radio and television operators shall publish a catalogue of ‘basic channels’ distributed via their
networks. The basic channels shall include the programmes required by the NRTA and its local branches. In
practice, such basic channels are usually the channels of the central and relevant provincial, municipal and
county-level television stations; and

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• cable television network operators may suspend their services to certain users in case of payment overdue, but
the signal transmission of CCTV Channel 1 (a major channel of China’s national television station) must not
be suspended.

There is no mechanism for financing the costs of such obligations.

There is no regulation requiring radio or television stations to broadcast any mandatory content. However, the
Administrative Measures of Radio and Television stipulate what kind of content is prohibited. Programmes
produced by companies without a programme production licence are not allowed to be aired by radio or television
stations. Contents that are endangering the national unity, sovereignty or security, inciting ethnic hatred, leaking
state secrets, insulting, slanderous, obscene, superstitious or violent are prohibited.
Regulation of new media content
Is new media content and its delivery regulated differently from traditional broadcast media? How?
In general, China applies similar rules about content on new media and traditional broadcast media. However, the
content examination/review mechanisms are different.
While China previously had several separate regulations governing the delivery of content on new media, the
Provisions on the Governance of the Online Information Content Ecosystem (the Provisions) consolidate the
previous rules into a more coherent system of comprehensive rules for the content on the internet. The Provisions
were issued by the CAC in December 2019 and took effect on 1 March 2020.
The Provisions apply to content producers, content service platforms and content users, and online information is
categorised into three types according to the content nature:
• encouraged information: refers to information reflecting Chinese culture, publicising the socialist theory,
regime and values, responding effectively to social concerns, etc. Content producers are encouraged to
produce and publish this information, and content service platforms are encouraged to actively display such
information in prominent online locations such as home pages, pop-up windows, hot topic or default search
lists and other key areas that can easily attract attention;
• illegal information: such as content vilifying national heroes, jeopardising national security and national
honour, propagating terrorism and racialism. Content producers are prohibited from making, replicating and
publishing any illegal information, and content service platforms must not disseminate any illegal
information; and
• ill-natured information: such as contents involving sexual innuendos, violence, scandals. Content producers
and content service platforms are required to prevent and resist the production, replication or publication of
ill-natured information.

The Provisions also encourage content users to participate in the governance of the network information ecological
system and oversight of illegal and ill-natured information by filing complaints and reports.
In terms of content examination or review, radio and television stations are required to conduct pre-broadcasting
examinations of their contents, following the rules elaborated under the provisions of the Administrative Measures
of Radio and Television. Such pre-broadcasting examinations are conducted and signed off by editors. New media

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platform operators are also required by the above Provisions to establish mechanisms of content governance – both
models of pre-publishing and post-publishing reviews are commonly seen in market practices and machine reviews
such as keyword filtering are widely adopted.
Digital switchover
When is the switchover from analogue to digital broadcasting required or when did it occur? How will radio
frequencies freed up by the switchover be reallocated?
Digital television was launched in China in 2003 and the analogue services had been switched off by the end of
March 2021.
According to a circular issued by the Ministry of Industry and Information Technology (MIIT) in March 2020, part
of the 700MHz radio frequency previously occupied by analogue services would be reallocated to 5G networks.
Digital formats
Does regulation restrict how broadcasters can use their spectrum?
Specific licence terms and directions from regulators will prescribe the use that may be made of the allotted
spectrum.
Media plurality
Is there any process for assessing or regulating media plurality (or a similar concept) in your jurisdiction?
May the authorities require companies to take any steps as a result of such an assessment?
The concept of media plurality is not directly and explicitly provided in Chinese laws. In general, media in China
are encouraged to follow mainstream values and promote positive energy (meaning merits).
In particular, media products and services specially designed for ethnic minorities are also encouraged. According to
the State Council’s Opinions for the Further Development and Prosperity of the Cultural Cause of the Minority
Ethnic Groups that came out in 2009, the government shall provide greater support to news media for ethnic
minorities, as well as radio, television and film production and broadcasting for ethnic minorities.
Besides this, China’s Law on General Spoken and Written Language, which came into effect in 2001, provides that
dialects may be used in television, films and broadcasting, subject to approval from state or provincial authorities of
radio and television where applicable.
Key trends and expected changes
Provide a summary of key emerging trends and hot topics in media regulation in your country.
New media oversight
New media, especially the emerging of live webcasting, continue to pose greater challenges to traditional
broadcasting media, cinema chains, and even e-commerce platforms. Regulators are keeping pace with new trends
and have issued various rules to keep them under oversight, such as the Administrative Measures on Marketing via
Live Webcasting (Interim) issued by the NRTA and the CAC, jointly with other regulators of commerce, culture,
tax, public security and market supervision.
With the implementation of the Provisions on the Governance of the Online Information Content Ecosystem, the
government will strengthen oversight of online content, especially against content posted on social media platforms.

Integration of cable networks and convergence of cable and telecom networks

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Previously, cable television networks in China were operated by different companies in different provinces. The
state had planned to integrate such fragmented networks into a single national network since 2009. This task
witnessed significant progress in 2020. Nine ministries and commissions under the State Council jointly issued the
Integration and Development Plan for the National Cable Television Network early that year. This plan required that
the China Broadcasting Network Corporation Ltd (CBN, a state-owned company under the NRTA), provincial cable
network companies and strategic investors shall establish a joint-stock company to achieve unified operation and
management of the national cable television network. The joint-stock company was incorporated in September
2020.
The said Plan also required accelerated development of the CBN 5G network. CBN, as the entity responsible for
promoting convergence of cable network, telecom network and the internet, obtained China’s fourth 5G licence in
2019. Based on the approval from the MIIT and a framework agreement between CBN and China Mobile, the two
state-owned giants will jointly construct and share the 5G networks with 700 MHz frequency and 4.9GHz
frequency. CBN is also actively developing the application of 5G New Radio (NR) Broadcasting.

Protection of personal data

China’s data protection legislations are in dynamic development in recent years. The draft Personal Information
Protection Law went through the second reading at the National People’s Congress in late April 2021, and are
anticipated to be finalised soon. In the meanwhile, several lower-level regulations and guidelines relating to personal
data protection have been promulgated.
A draft rule in particularly close relation to the media sector is the Interim Administrative Measures on Personal
Information Protection of Mobile Internet Applications (draft) published by the MIIT in late April 2021. This draft
rule stipulates detailed requirements for mobile App developers, operators and distribution platforms.
Several Chinese regulators such as the MIIT, the CAC, the State Administration for Market Regulation and the
police, have carried out enforcement actions against the misuse of personal data by mobile apps since 2019. This
trend is anticipated to continue.
Law stated date
Correct on
Give the date on which the information above is accurate.
27 April 2020

Simmons & Simmons - Jenny Liu, Jingyuan Shi and Yuchen Lai

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