Shanghai - China’s online video game market is expanding rapidly, with sales forecasted to grow from $1.7 billion in 2007 to $6 billion in 2012, according to a survey released by Niko Partners today.
“This market is attractive because it is leading the way for online games,” said Lisa Cosmas Hanson, managing partner of Niko Partners, according to VentureBeat.

Beijing - Japan's Softbank has led a $430 million investment that will give the group a 35% stake in Oak Pacific Interactive (OPI), which manages Xiaonei.com, China's largest social networking site.

Shanghai, China - Chinese online games operator Giant Interactive Group announced on Monday that its two-year-old "ZT Online" multiplayer game reached a new Chinese record of 2.1 million peak concurrent users over the weekend.

Los Angeles - Tudou, China's largest video-sharing site, has landed a $57 million fourth round of venture capital financing, from return backers IDG Technology Venture Investment, Granite Global Ventures and General Catalyst Partners, Pacific Epoch reports.

Shanghai, China - The9, an online game operator in China, announced on Wednesday that it has made an equity investment of $38 million in Korean game developer G10 Entertainment.

While US webcasters may think that they have legal issues - whether it be the Internet radio music royalties that have been such a concern (see our coverage, here) or the copyright and other liability issues that surround user-generated content on various websites (see our story here), they face nothing like new rules that were recently adopted for webcasters in China. The new rules require government permits from two separate Chinese government agencies before webcasting operations can begin. In addition, the rules appear to require ownership and control of webcasting operations by state-owned companies. A memo on these new rules, prepared by attorneys from Davis Wright Tremaine's Shanghai office, can be found here.

Beijing - A Chinese court has agreed to hear two multi-million dollar copyright infringement claims brought by major record labels against Chinese search engine Baidu, and Web portal Sohu and its Sogou media search engine, according to the International Federation of the Phonographic Industry (IFPI). The Beijing Intermediate People's Court will hear a $9 million claim against Baidu brought by Universal Music Group, Sony (NYSE: SNE) BMG and Warner Music (NYSE: WMG), who will argue that the search engine aids copyright infringement by providing "deep links" to unauthorized downloads on third-party sites.

Burbank, Calif. - Disney Interactive Studios (NYSE: DIS), the company's video game publishing unit, announced on Monday that it has acquired Chinese independent game studio Gamestar, for an undisclosed sum.

Beijing - Jeboo, a company that provides Chinese Internet cafes with subscription movie download services, has filed a "reputation infringement" suit against the Motion Picture Association (MPA), according to JLM Pacific Epoch, which cited a report on ChinaNews.com.cn.

Beijing - Google's (NASD: GOOG) YouTube has been blocked from the view of Chinese Internet users, after dozens of videos documenting protests against Chinese rule in Tibet appeared on the site over the weekend, the Associated Press reports.

Shanghai – Video-sharing site Youku.com, based in China, has teamed with social networking site MySpace to tackle the market, Reuters reports.  Trying to become China’s version of YouTube, Youku’s CEO Victor Koo said both companies hope to gain traffic from the partnership, and to share products in the future.  Launched in December 2006, Youku sees over 100 million daily video views, according to Nielsen/NetRatings.

According to research from Beijing-based BDA, based on data from the China Internet Network Information Center, the country had 210 million internet users at the end of 2007, compared to Nielsen/NetRatings findings of 216 million.

Hong Kong - Five Hollywood studios that sued Chinese Internet café chain media service provider Jeboo, over its subscription movie download service, have settled their pending litigation, with Jeboo agreeing to cease its infringements and pay a "significant" amount in damages.

Hong Kong - HeySpace, a Hong Kong-based social networking site, has raised $10.75 of a $20 million first round of venture capital financing, PEHub.com reported, citing a regulatory filing.

Tokyo - Google (NASD: GOOG) is in talks with Chinese digital music distributor Top100.cn to launch a free music download service in China, and major label Universal Music Group has confirmed its involvement in the negotiations, The Wall Street Journal reported on Wednesday. Fellow major labels Sony BMG (NYSE: SNE), EMI and Warner Music (NYSE: WMG) are also considering joining the venture, people familiar with the matter told The Journal.

Cannes, France - The Orchard, a digital distributor of independent label music, on Wednesday partnered with Chinese mobile firm ZTE, to develop marketing programs and content bundles to bring Orchard content to ZTE partners, including China Mobile, China Unicom and China Telecom. ZTE delivered 30 million mobile handsets globally during 2007, is also adding applications such as music downloading and playing to its handset product range.

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.

Shanghai, China - Focus Media (NASD: FMCN), China's larges digital media group, announced on Monday that it will acquire CGEN Digital Media Company, the operator of an in-store digital advertising network in China, for $168.4 million in cash.

Los Angeles - 56.com, a video-sharing website in China, has raised $20 million in its second round of venture capital financing, led by Hikari Private Equity, VentureBeat reported.

China - A combined frustration with the US’s arms sales to Taiwan, ongoing trade disputes, and the success of American films at the box office have led to a ban on Hollywood films by the Chinese government, The Independent reports. The ban might last until May.