China Opens Up Publishing Sector to Foreigners

According to Daily Variety, government officials in Beijing are publicly considering bringing in private investors in the heavily regulated sector.

"Many developed countries hope to enter the Chinese press and publishing industries here," General Administration of Press and Publication head Liu Bingjie said in a statement. "We welcome them to come to China to develop the market."

The statement marks the first major development in opening the publishing market in the East Asian nation to outsiders. As of Tuesday, over 52 publications have formed partnerships with foreign firms, including online newspapers and print publications.

Previously, the China market proved hard to ascertain. No less than Rupert Murdoch tried--and failed--several times to get access for his News Corp. empire. However, China isn't exactly throwing the doors wide open either.

According to Bingjie, although the Middle Kingdom is opening its doors to foreign electronic publications, control of the country's major organs, such as Xinhua, will remain in Chinese hands.

Though it is unclear how the new policy differs from the previous one, Bingjie indicated that Beijing is open to new opportunities--on their terms, of course. "We have great potential for further development," he said.

To be more accurate, 80 billion yuan worth of it. That's how much wealth is generated by the publishing industry in China. Yet in the wake of the global economic crisis, that tiny sliver of the Middle Kingdom's pie is shrinking.

Under the terms of the new regulations, over 124 publications would have to become privately owned--meaning opening themselves up to advertisers--who are hard to attract in a recession.

In the meantime, the Chinese government is steaming ahead. The first issue of an English-language newspaper, the Global Times, hit newsstands Tuesday.