Hong Kong – With nearly 20% of the world’s population and one of the fastest growing economies, China’s decision today to restrict internet video to state-run companies is sure to have a large impact on the strategic thinking of digital media content providers everywhere. The AP reports that the new regulations will begin on January 31, and were approved by the State Administration of Radio, Film, and Television, and the Ministry of Information Industry.

No official word yet on how sites like YouTube and independently-run Chinese internet video providers will be affected.

The system for gaining government approval will be arduous: Video sites must obtain permits, and the applicants must be either state-owned or state-controlled companies. YouTube, in other words, is likely to suffer a blackout in China.

The AP says that Chinafilm.com, run by the state-controlled China Film Group, reports that the “majority” of internet video providers in China are private.

"Those who provide internet video services should insist on serving the people, serve socialism ... and abide by the moral code of socialism," Chinafilm.com quotes the rules as saying.

Related:

http://biz.yahoo.com/ap/080103/china_internet_video.html?.v=7