China is so keen to keep foreign investment flowing that it probably will let private Web sites work around strict new rules limiting video-sharing to state-controlled companies, analysts say.

China-based Web sites already need a government license that only companies majority-owned by Chinese nationals can get, and managers of private sites based in China say they already excise “inappropriate” substance.

But the new regulations — issued Dec. 29 and scheduled to take effect Jan. 31 — additionally require that the

state have a controlling interest in any video entertainment Web site.

“It’s a very clear report these Chinese film governing authorities have decided to send — that they’re taking that stuff seriously and they’re going to regulate it,” said Jeremy Goldkorn, editor-in-chief of Danwei.org, a Web site that covers Chinese media issues.

But Goldkorn said Beijing won’t shutter private video sharing Web sites considering that might spook foreign investors to desert the […]

Orginal post by Top Tech News