The Chinese government once again offers a vivid demonstration of why the China-phoria drawing more VC dollars, more Western internet business and more analyst interest is such a gamble. From China Daily: Services that provide online news stories, that have bulletin board systems or text messages with news content are all subject to the tighter regulations that threaten “severe punishments or even shutdown” for publication of stories containing “fabricated information, pornography, gambling or violence.” Chinese citizens are expected to report “unhealthy online stories.”
The NYT reports that the new regulations include required registration for private individuals and groups operating email distributions lists with new or views. “Few individuals or private organizations are likely to be allowed to register as news organizations, meaning they can no longer legally distribute information by e-mail.” The rules also make it more difficult for news sites to republish articles not controlled by the government.

Within the last week, News Corp. Chairman & CEO Rupert Murdoch and Time Warner Chairman & CEO Dick Parsons each expressed concerns about the amount of control over content required to operate in China. Parsons said Time Warner decided against distributing AOL in China because of demands that the government be allowed to monitor traffic and email. Meanwhile, Disney continues to push for Chinese distribution of the Disney Channel.