China is planning to bring more honesty and transparency to reporting newspaper circulation data.

"An inspection on circulation data of newspapers from 11 cities will be launched," said a state circular released on Monday.

The 11 cities include Beijing, Guangzhou and Chengdu, said the circular released ahead of the 2007 newspaper circulation season by the General Administration of Press and Publications and other three central departments.

The Sino Publication Audit Center, the sole NGO in China's press and publishing field, is entrusted by the government to conduct the inspection.

"Currently, due to fierce competition, the phenomenon of newspapers making false circulation data prevails, and newspaper publishers are making unscrupulously gains in advertising" by exaggerating their sales, said the circular.

China's newspaper market has seen rapid development during recent years, with more than 1,900 newspapers and 9,500 periodicals published.

With stiff competition from television, Internet and even cell phones, newspapers are illegally exaggerating their circulation.

To rule out illegal practices, the circular bans newspapers from promoting their sales by paying customers.

The circular also regulates that newspaper publishers should set fixed publishing dates, retail prices and advertising prices to ensure a healthy market.