China will take new measures to further tighten control of the Internet when rules go into force limiting online video-sharing to state companies. But regulators, wary of hurting a fast-growing industry, are expected to let private operators work around the restrictions.

The rules are part of China's censorship balancing act that tries to block Internet use to spread dissent while promoting it for business and education. Communist leaders are especially anxious about unflattering video showing up online ahead of the Beijing Olympics in August.

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