Industry Report - The Regulatory Environment for B2B Publishing in China

The purpose of this paper is to provide subscribers to the Asian Business Media Tracker service with an overview of the current regulatory environment in China for publishing as well as providing insights into strategic options currently being used by foreign publishers.

The maze of media regulations continues to top the considerable list of challenges facing business publishers in China. It is a virtually impossible task for any foreign publisher to stay completely out of the legal "grey areas." It is also widely accepted that the maintenance of these grey areas is a key component of the Chinese authorities' strategy to manage the industry. An unclear regulatory environment allows them a great deal of room to make arbitrary decisions.

Trademark abuse and copyright theft are viewed as a cost of doing business in China. Foreign publishers often do not pursue copyright infringement cases through the Chinese legal system; however, the more extreme cases of trademark abuse are occasionally successful settled through the courts.

Business publishers have tried, with varying success, a number of different structures as a means of navigating the regulatory environment. Options include joint ventures through advertising and consulting companies, licensing and offshore business structures. Alternatively, a number of publishers are using internet-based, electronic-only publications in order to work around regulatory challenges.