China softens rules on video-sharing websites

China has eased new Internet controls that had limited video-sharing to state companies, saying private competitors already operating in the fast-growing arena may continue.

Any new video-sharing companies must comply with the rules, which took effect last week, the government said Tuesday.

The rules appeared to be aimed at extending China’s Web censorship as the Beijing Olympics approach and at preventing the distribution of unflattering videos. But industry analysts said regulators would be reluctant to enforce them strictly and risk damaging a promising industry.

“Companies that began operation legally before the regulation was issued and have not violated laws or regulations can be licensed and continue operating,” said a statement issued by the two agencies that imposed the rules, the Ministry of Information Industry and the State Administration of Radio, Film and Television.

A key question in the industry -- how regulators will treat amateur videos -- remains open. The statement Tuesday gave no indication whether they would still be allowed.

Some amateur videos have made stars of their creators, but the phenomenon is at odds with the Communist government’s insistence that all media be state-owned.

All existing video-sharing sites in China are privately owned, and the rules could have forced some out of business.