China’s State Administration of Radio, Film and Television (SARFT) has clarified details of its new regulations for Online Audio and Video Services which appeared to ban any private company activity from the sector. It now says some existing private online video firms will, under a 'grandfather clause,' be eligible to continue operations.

More specifically, those firms which had offered online video services legally and without violation of rules on permissible content before issuance of the new regulations will be allowed to re-register and continue providing services. Those which had been cited for major or repeated violations of earlier rules, such as provision of pornographic, violent, or other illegal content, 'will be punished and severely regulated; and those which had been cited for more minor violations will be required to come into compliance before a certain date.'

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