Page 312 - 2017 White Paper
P. 312
7 White Paper on the Business Environment in China
for mass marketing to CCTV’s big audiences — are also established on September 2016, according to Gan Lin,
taking their money to the Web, following their viewers vice head of the State Administration for Industry and
(Burkitt and Wang 2013). Commerce (SAIC). A department tasked with monitoring
online commercials will also be established (Xinhua
Unrelated regulatory pressure on “infomercials” 2016a). After the tragic incident of the Shaanxi cancer
(Larson 2013) may also play a factor in media buyers’ patient and following in the footsteps of the amended
decisions; regardless, the worldwide web is clearly Advertising Law implemented in 2015, the State
becoming a dominant platform upon which brands reach Administration of Industry and Commerce’s (SAIC) Interim
out to Chinese consumers. Measures for the Administration of Internet Advertising
came into effect on September 1, 2016. The new
In 2011, the Chinese government announced a new regulation clarified what content is considered “internet
law that would prohibit outdoor advertisements that advertising”, laid down rules for “publishers” of online
“promote hedonistic or high-end lifestyles”. The Jing Daily advertisements, and outlined investigation measures
reported: “The Beijing Administration for Industry and and penalties for violators. The regulation identified
Commerce said in a recent statement that businesses individuals or groups called “publishers” who hold the
were given an April 15 deadline to rectify such ads, along responsibility of complying with the online advertising
with any that excessively promote ‘foreign’ things. It rules (and subject to penalties when in violation):
gave no details on which ‘foreign’ things were deemed
objectionable. Such promotions help create a politically - Any entity conducting the following activities is
‘unhealthy’ climate”, it said. Newly forbidden words considered an internet advertising “publisher”;
include “supreme”, “royal”, “luxury” or “high class” (Jing
Daily 2011). - Displaying or submitting internet ads, verifying or
moderating submitted ads for publishing.
New regulations on online advertising are casting a
wide net, affecting businesses from e-commerce to social This group included both content creators and
media, as China’s government tries to get a hold of a fast- platform operators such as search engines or content
moving segment of the internet. In 2016, the Cyberspace sharing platforms that host third-party advertisements
Administration of China ordered online search engines to (Jin 2016).
limit and clearly identify the number of paid-for listings
to avoid misleading netizens. Companies offering web The Interim Measures for the Administration of Internet
search services were also required to review their criteria Advertising applies to products and services under the
for potential advertisers (Cao 2016). same scope as the preexisting Advertising Law, which has
been in effect since 2015. The new regulation reiterated
The new online advertising regulation was spurred in the online advertising restrictions included in the
part by an incident in April 2016, when the parents of a Advertising Law, prohibiting online advertisements for
21-year-old student in Shaanxi province blamed Baidu prescription drugs and tobacco products. The regulation
for wasting their cancer-stricken son’s valuable time in his also stated that the following products required review
fight against synovial sarcoma, a rare soft tissue cancer, before being published online:
by pursuing an ineffective treatment he had discovered
on the search engine. Wei Zexi, who died on April 12, · Medical treatments
received four treatments at the Second Hospital of the · Pharmaceuticals
Beijing Armed Police Corps that were meant to use cells · Foods for special medical purposes (FSMP)
from his immune system to kill cancerous cells. The · Medical devices
hospital’s paid-for listing came second on a Baidu search · Pesticides
about the cancer, Wei’s parents said (Cao 2016). · Veterinary drugs
· Dietary supplements (Jin 2016)
Over the past several years, the Chinese government
has turned its attention toward greater regulation of Banking
advertising, and more recently of online advertising.
A temporary regulation requiring publishers to clearly The banking industry was “fully opened” to foreign
mark all online commercials as advertisements was also participation in December 2006, and international
financial institutions were not slow to enter the market:
the China Banking Regulatory Commission reported
312
for mass marketing to CCTV’s big audiences — are also established on September 2016, according to Gan Lin,
taking their money to the Web, following their viewers vice head of the State Administration for Industry and
(Burkitt and Wang 2013). Commerce (SAIC). A department tasked with monitoring
online commercials will also be established (Xinhua
Unrelated regulatory pressure on “infomercials” 2016a). After the tragic incident of the Shaanxi cancer
(Larson 2013) may also play a factor in media buyers’ patient and following in the footsteps of the amended
decisions; regardless, the worldwide web is clearly Advertising Law implemented in 2015, the State
becoming a dominant platform upon which brands reach Administration of Industry and Commerce’s (SAIC) Interim
out to Chinese consumers. Measures for the Administration of Internet Advertising
came into effect on September 1, 2016. The new
In 2011, the Chinese government announced a new regulation clarified what content is considered “internet
law that would prohibit outdoor advertisements that advertising”, laid down rules for “publishers” of online
“promote hedonistic or high-end lifestyles”. The Jing Daily advertisements, and outlined investigation measures
reported: “The Beijing Administration for Industry and and penalties for violators. The regulation identified
Commerce said in a recent statement that businesses individuals or groups called “publishers” who hold the
were given an April 15 deadline to rectify such ads, along responsibility of complying with the online advertising
with any that excessively promote ‘foreign’ things. It rules (and subject to penalties when in violation):
gave no details on which ‘foreign’ things were deemed
objectionable. Such promotions help create a politically - Any entity conducting the following activities is
‘unhealthy’ climate”, it said. Newly forbidden words considered an internet advertising “publisher”;
include “supreme”, “royal”, “luxury” or “high class” (Jing
Daily 2011). - Displaying or submitting internet ads, verifying or
moderating submitted ads for publishing.
New regulations on online advertising are casting a
wide net, affecting businesses from e-commerce to social This group included both content creators and
media, as China’s government tries to get a hold of a fast- platform operators such as search engines or content
moving segment of the internet. In 2016, the Cyberspace sharing platforms that host third-party advertisements
Administration of China ordered online search engines to (Jin 2016).
limit and clearly identify the number of paid-for listings
to avoid misleading netizens. Companies offering web The Interim Measures for the Administration of Internet
search services were also required to review their criteria Advertising applies to products and services under the
for potential advertisers (Cao 2016). same scope as the preexisting Advertising Law, which has
been in effect since 2015. The new regulation reiterated
The new online advertising regulation was spurred in the online advertising restrictions included in the
part by an incident in April 2016, when the parents of a Advertising Law, prohibiting online advertisements for
21-year-old student in Shaanxi province blamed Baidu prescription drugs and tobacco products. The regulation
for wasting their cancer-stricken son’s valuable time in his also stated that the following products required review
fight against synovial sarcoma, a rare soft tissue cancer, before being published online:
by pursuing an ineffective treatment he had discovered
on the search engine. Wei Zexi, who died on April 12, · Medical treatments
received four treatments at the Second Hospital of the · Pharmaceuticals
Beijing Armed Police Corps that were meant to use cells · Foods for special medical purposes (FSMP)
from his immune system to kill cancerous cells. The · Medical devices
hospital’s paid-for listing came second on a Baidu search · Pesticides
about the cancer, Wei’s parents said (Cao 2016). · Veterinary drugs
· Dietary supplements (Jin 2016)
Over the past several years, the Chinese government
has turned its attention toward greater regulation of Banking
advertising, and more recently of online advertising.
A temporary regulation requiring publishers to clearly The banking industry was “fully opened” to foreign
mark all online commercials as advertisements was also participation in December 2006, and international
financial institutions were not slow to enter the market:
the China Banking Regulatory Commission reported
312
