China's new rules on online video and audio content banning violent, pornographic and fake material are aimed at promoting the Internet's "healthy" development, according to a government statement.
The rules, unveiled late last year, say sites offering broadcast or streaming services should be run by state-invested bodies, the Ministry of Information Industry said.
Sites, which have a blameless record, will be able to reapply for independent operating licenses. "The Internet in China is developing very rapidly, and there are already more than 200 million users. It is everyone's common aspiration to have a good Internet environment," the Ministry said in a statement released on its website late on Tuesday.
"The rules encourage Internet video and audio service providers to transmit positive programs which are in the public interest," it added. The Chinese authorities said that only state-owned or state-controlled companies can apply for licenses to broadcast or stream videos online, but a lack of clarity over those definitions and uncertainty over how strict Beijing will be in enforcing the rules have left many in the industry confused.
Google's YouTube is often blocked during high-level political events in China, while online encyclopedia Wikipedia and Yahoo's photo-sharing network Flickr have also been periodically blocked. The new statement did not appear to clarify the situation. "The rules make clear state investment should guide the development of Internet video and audio programs, which is of benefit to the development of Internet culture with Chinese characteristics," it said.
"(Companies) which have operated in accordance with the law and done nothing illegal before the rules came out, can re-register and carry on operating," the statement added.
Several of China's most popular video websites are backed by foreign venture capital heavyweights such as Sequoia Capital, Steamboat Ventures and IDG.
China's government, keen to avoid sparking social discontent, keeps a tight watch over the media and often blocks or censors popular websites and forums where dissent may brew.