Foreign newspapers are coming!
(Business Weekly)
Updated: 2004-12-12 09:41

Foreign newspapers have been given the green-light to be printed in China, but this has not meant that local readers can buy a copy of a 'Printed-in-China' Wall Street Journal or New York Times at your friendly local news stand.

The circulation sector will remain "jinqu", a forbidden area for foreign investors for some time to come, stated government officials.

Liu Binjie, deputy head of the State Press and Publication Administration (SPPA), was quoted recently by the UK-based Financial Times that the country will allow foreign newspapers to be printed in China.

Liu's remarks left an impression in the industry that the overseas newspapers could circulate within the country.

Zhu Weifeng, an official with Liu's office at SPPA, specified that "printing and circulation are two categories."

He said that printing newspapers for foreign media makes no difference with other kinds of processing materials supplied by foreign clients.

"It is the same as, say, assembling televisions for foreign companies during the 1980s. They export television parts to China, where Chinese workers pieced together televisions from those parts," Zhu said.

"Foreign newspapers can be printed in China, but all should be exported, which means they are made for export for an international market, so not one copy should be left to enter the Chinese market without this stipulation," Zhu said.

China's commitment to the World Trade Organization (WTO) does not include the media sector, which is common practice for many developed countries, Zhu said.

"The circulation of overseas newspapers will remain forbidden in China, in the near future."

Currently, many overseas newspapers are printed in places including Hong Kong or Singapore, and imported into the Chinese mainland via China National Publication Import and Export Corporation (CNPIEC).

Only hotels, airlines, educational institutions and governmental departments are allowed to subscribe from CNPIEC, the sole subscription agent for all overseas newspapers.

Such newspapers are still beyond the reach of individual subscribers.

Thus, foreign media are unable to export their paper to China, in the same manner as other products, such as automobiles or televisions.

Zhu is not concerned about reports of different ideologies being revealed to society with the opening up of the printing business, saying the government will take strict measures to guarantee the full number of "Printed-in-China" newspapers are exported.

"Restrictions on the distribution of overseas newspapers, and the requirement that they are treated as imported items, will remain in force," Zhu said.

He added that a number of well-known international newspapers have shown interests in printing copies for the Chinese market, but none have yet made a formal application.

International publishing groups are eager to play a greater role in China, with the country's fast growing economy.

Overseas magazines and other publications have won wide circulation in China through co-operation with local partners.

However, opportunities for overseas newspapers remain relatively limited in any market.

Experts say printing in China hints the further easing of restrictions as part of a broad drive to reform and commercialize China's media industry, said Zhao Xiaobing, president of Global China (Beijing) Media Consulting Co.

"Foreign firms which begin printing in China will win further opportunities earlier when the sector opens up," Zhao said.

For now, he said, foreign newspapers can only benefit from the lower labour and land using costs.

His opinion is echoed by Li Jiong, a researcher with the Guangdong Printing Association.

"Compared with Hong Kong, Shenzhen, in Guangdong Province, has much cheaper labour costs. A monthly salary for a worker in Shenzhen is less than 2,000 yuan (US$241.55) each month, ten times less than in Hong Kong," Li said.

Land usage costs are also much cheaper in Shenzhen.

Furthermore, the city has enough advanced technology to print foreign newspapers.

"The location is also an advantage for the city," Li said.

Since Shenzhen borders Hong Kong, it takes only one hour for newspapers to reach customers in Hong Kong, which guarantees the papers will arrive on time, he further explained.

"The transportation cost is low. Transporting several hundred thousand copies of newspapers between the two cities only cost about 1,000 yuan (US$120.77) each day.

"The papers sold in Hong Kong, Taiwan and the southeastern Asian countries can all be printed in China," Li said.

"The country can also learn about and implement the advanced technology of their foreign clients, and finally improve the competitiveness of the sector," Zhu from the SPPA said.

He said the media reforms in China have already been carried out, such as the pilot programme that transfers media organizations from governmental departments into independent companies.

"Such a method will be popularized nationwide, beginning from next year," he said.

Meanwhile, local media welcome foreign investment for their circulation business. The editorial division is still beyond the reach of overseas capitals.

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