During a trip to Shanghai this month, I took note of the major changes sweeping this city - and country. It is rapidly becoming as cosmopolitan as any major western city. The influx of starter-capitalism, has also brought changes to the media in this country.

Satellite dishes have become increasingly common, primarily in hotels and approved areas, and are spreading further into the region. Mobile phones and text messaging permeate larger cities - (220 billion text and image messages were received by cell phones in 2003). 1 Starbucks and McDonalds can be found nestled next to ancient temples. And publications such as Business Week and ComputerWorld are now published in China.

China’s National Bureau of Statistics reported that in 2002, there were approximately 2,500 newspapers, 8,200 periodicals, 1,500 radio stations, 4,000 TV stations and two nationwide wire services (Xinhua and China News Agency).

Traditionally, all forms of media have been under the tight control of the propaganda departments of the central, provincial and city governments. The Publicity Department of the Central Committee holds ultimate power and control over all local media. Propaganda officials distribute weekly instructions on how to handle news, but tend to focus on government-related issues, not business or lifestyle stories in which journalists seem to have more flexibility.

I recently worked directly with several Chinese media outlets, while holding a press briefing in Shanghai.2 I met 15 reporters from leading print publications and TV stations such as China Daily News , Economy Daily and Dragon TV. Generally, they said they have no restrictions on the type of business news they cover.

However, there are some differences in their style and format. Reporters require a “travel fee” to attend a briefing and are frequently given corporate gifts. Unlike their Western counterparts, Chinese reporters tend to have less aggressive questions and allow more direction on the final story. Dragon TV allowed us to eliminate a few minutes of a taped interview that were inaccurate. Like Western media they understand the need for compelling angles to interest their audiences. More and more are looking to advertising to support their continued operation.

Financial issues:

Fiscal issues may be driving some of the changes in the media. Broadcast and print outlets nationwide are facing cutbacks in government financial support and are now encouraged to look for funding from advertisers and additional subscribers.

The Central Committee is examining its role in the country’s vast media market, and making some changes. According to a report in the Financial Times, “China late last year launched a review of more than 1,400 party and state newspapers and periodicals closing nearly half and ordering most of the remainder either to take responsibility for their own finances or to join commercial media groups.”3

According to The Standard (Greater China’s Business Newspaper),4 China suspended the publication of 673 newspapers and magazines as a result of nationwide reform of official media. Another 289 publications are reported to have “de-linked” from local and national government agencies, and a further 302 have been merged with, or taken over by, other publications. “The restructuring is also being viewed by some as direct preparation for the onset of international publishers entering China within the next few years,” the newspaper reported.

The government also recently lifted its ban on foreign investment in Chinese media. It will require Chinese control of the media source, but will allow significant outside ownership. The government stated that it would test the program for five years.

Internet
The blend of old and the new can be witnessed daily in cities like Shanghai. On one street corner, a Party newspaper is pasted to a bulletin board in a glass case mounted to a wall.

Mainly elderly men can be seen strolling down the sidewalk display, reading the news of the day. Nearby, a crowed Internet café overflows with young people chatting online or surfing the Web.

IDC Asia estimates the number of Internet users in China to be 80 million and growing at double-digit percentage rates annually.

A confluence of technologies and events has brought change to the once tightly controlled media in China. The government still maintains control, but it is lessening gradually. The Internet and text messaging have changed the environment and will continue to penetrate further into the country.

1 China Mobile Communications and China Unicom 2003 Statistics

2 Honeywell Specialty Materials Press Briefing, Shanghai – March 2, 2004

3 Dickie, Financial Times, March 4, 2004

4The Standard, Greater China’s Business Newspaper, November 2004

Posted by Reid at March 17, 2004 02:13 PM