The impact of market economy has also hit the Chinese media industry, which is starting to move toward deregulation after long years of strict government control. Twenty years ago, only a handful of newspapers, magazines and television stations were operating in China. Today, the publishing industry puts out 2,000 newspapers and 8,700 magazines, while the number of television and radio stations has jumped to 362 and about 300, respectively.
As the media industry enters the ``Warring States Period,'' competition is intensifying. For example, in the five years leading up to 2000, about 150 newspapers disappeared as a result of streamlining, while more than 300 new ones emerged.
The intense competition and rapid changes can be seen at the ubiquitous newsstands throughout urban areas. A myriad of magazines and newspapers are packed much closely together than those at Japanese kiosks. In terms of design, with advancing globalization, they look no different from those of industrialized nations. I make it rule to observe a Beijing newsstand whenever I visit the city and take pleasure in finding new ones every time.
As is the case with electric appliance and auto industries, the advancement of foreign capital is accelerating competition in the Chinese media industry. The Hong Kong-based Phoenix Television already reaches more than 42 million households on the Chinese mainland. Media magnate Rupert Murdoch's Star TV and the U.S. media company AOL Time-Warner obtained authorization in last November respectively to make satellite broadcasts in the coast area of Guangdong province.
Around the same time, the British company, Pearson Plc, formed a joint venture with CTV Media, a subsidiary of China Central Television, and signed a contract to sponsor educational programs and those targeted at consumers to 350 million households in China. The U.S.-based Viacom Inc., which forms one of the world's largest media groups, also signed agreements with more than 200 television stations across China at the end of last year and has been broadcasting MTV music programs and Nickelodeon shows for children.
In the publishing industry, such magazines as Shishang, Zhuiqin and Jisuanji Wangluo that specialize in fashion and other areas are known to have the financial backing of foreign businesses that put out similar magazines.
The advancing deregulation of the media industry that involves major international media organizations is a result of advancing economic liberalization and not the outcome of encouragement by the Chinese Communist Party. Rather, it had no choice but to accept it after the fact or turn a blind eye.
With a drastic reduction in government subsidies, media companies, most of which are already financially independent, are increasingly relying on readers, viewers and advertisers to support themselves based on market mechanisms. Meanwhile, the public is turning its back on government-run media organizations that refuse to change their old ways. In fact, quite a few are facing financial difficulties and some have been forced out of business.
On the other hand, ``Jiaodian Fangtan'' aired by Central Television is very popular with viewers because it presents various social problems from a bold and realistic perspective. It is a well-known story that Premier Zhu Rongji has advised Cabinet ministers to watch the program every day. It is also said that leaders of local governments don't want the show to focus on their areas because they are afraid to face embarrassing situations.
A year ago, ``News 30 Minutes,'' also broadcast by Central Television, exposed the fact that Guanshengyuan, an established food maker in Nanjing, made cakes using leftover ingredients from the previous year. The report aroused the anger of consumers and eventually caused the company to shut down. At the same time, it heightened the awareness of the public as well as the government toward food safety.
``Nanfang Zhoumo'' and ``Jingji Guancha Bao'' are among a number of newspapers that have become increasingly popular these days. When a Nanfang Zhoumo editor, who made scoop after scoop on deeply rooted serious social problems, was dismissed because of pressure from government higher-ups, the paper stood firmly by its editorial policy and increased its readership. Jingji Guandcha Bao, which started in April 2001, advocates an editorial policy of ``rational criticism'' and increased its circulation to 100,000 by the beginning of this year.
The Chinese media still has many structural problems that must be overcome, the most serious of which is the ban on open criticism of party policies and the central government. But no one can stop the advancement of market economy. The trend for ``liberalization'' is more advanced with local and specialized newspapers than ones with nationwide circulations, which are more closely watched by the central government. How reform of the Chinese media leads to social democratization as a whole deserves close observation.
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Market economy hits China's media industry