MSL China Executive Whitepaper

PR and the Party

- the truth about media relations in China
By Bill Adams, Catherine Cao, Linda Du and Charlotta Lagerdahl

Chinese Media

State Controlled or Freewheeling Tabloids?

As China becomes more important to MNCs, Communications and Public Affairs

About MSL China

executives at global headquarters are being asked to provide support for company

Following the union with Eastwei MSL, MSL China is now a top 5 international strategic communications

business plans in China, as well as ensuring that local political or market issues do

agency in Mainland China. With 200 colleagues across 4 offices, MSL China brings together over

not negatively influence global business or their reputation. Most business failures in

20 senior consultants with more than 12 years of strategic communications experience in this key

China from market entry difficulties or blocked mergers & acquisitions, to product

global market. Part of MSLGROUP Greater China, the largest PR & social media network in the region

flops and media crises are due to strategic misalignment and lack of communication

today, MSL China provides knowledge driven, integrated campaigns and advisory services spanning

between head office and local management. These problems could have been avoided if

nearly every industry and communications discipline. MSL China has received recognition from the
International Business Awards, The Holmes Reports PR Agency of the Year, the China International
PR Association and Chinas New Media Festival for its creativity and effectiveness in strategic

communications leaders at headquarters had been more in touch with their local proxies
and had a better understanding of the market.

communications and industry-leading social media offering.

Invariably, corporate heads of communications must rely on local colleagues and

consultants for support. But the Chinese communications landscape is complex, fluid,
and often contradictory how can you evaluate communication plans and messages in
a market characterized by state censorship and a sensationalizing, profit-driven media
serving the worlds largest group of Internet users and consumers? And when things

About MSLGROUP
MSLGROUP is Publicis Groupes speciality communications and engagement group, advisors in all

go wrong, and youre the one in headquarters explaining to your CEO why Chinese
newspapers or bloggers have placed your brand in the crosshairs, will you be able to
explain how the Chinese media works and why it behaves the way it does?

aspects of communication strategy: from consumer PR to employee communications, from public

affairs to reputation management and from crisis communications to event management. With more
than 3,000 people, its offices span 22 countries. Adding affiliates and partners into the equation,
MSLGROUPs reach increases to 4,000 employees in 83 countries. Today the largest PR network in

At MSL China we believe that in order to be effective in China, global PR and PA leaders
need to:

Greater China and India, the group offers strategic planning and counsel, insight-guided thinking and
big, compelling ideas followed by thorough execution.
Learn more about us at:
www.mslgroup.com http://blog.mslgroup.com Twitter YouTube

Understand which media are important and why

Know how Chinese media differ from their counterparts in the West
Apply best global PR practices adapted to local market conditions
This whitepaper, based on nearly two decades of advising multinational companies in
China, provides some guidelines and best practices for accomplishing these goals. We
have structured it as a China media primer for global communications executives;
providing local context and suggestions for how to best navigate the media market.

MSL China Executive Whitepaper

PR and the Party - the truth about media relations in China

Media Landscape
With the worlds third largest advertising market, print, broadcast and digital media
are thriving in China. Even with the active participation of propagandists and censors,
Chinas hybrid of state-controlled and commercial media is an incubator for fledgling
media empires, muck-raking journalists and cutting-edge Internet platforms. Below
is a description of key media channels for corporate communications and marketing
campaigns.

Newspapers
China is a leading newspaper market with over 2,000
in print and over 100 million total copies sold daily
(compared to less than 1,500 in the United States and
51 million total copies sold daily). Unlike their Western
peers, Chinese newspapers
are not in financial distress;
print news media are still very
healthy.

others looking for the latest information and insights on

government policies and data, cannot afford to ignore
the official newspapers. PR professionals and marketers
in China are keenly aware of the value of appealing to
both categories in order to reach a broad readership.
Most newspapers are localized, and different regions
have distinctive characteristics. For example, Beijing
papers tend to be more
politically oriented; Guangzhou,
on the other hand borders
freewheeling Hong Kong, so
its newspapers often push the limits of government
censors. Every major city has one or two local papers
with wide distribution, but few reach national audiences.
Like their peers in the West, most people in China tend
to read their local paper.

Business News Media

During the 1990s, Chinas market economy began to expand rapidly and business media flourished along with it.
While chief editors in other sectors remained hyper-sensitive to government controls in the immediate aftermath
of the Tiananmen Square events of 1989, those in business media were given more leeway to operate and cover
capital markets and at times act as watchdogs for the fledgling market economy. The China Securities Regulatory
Commission (CSRC), the PRCs equivalent of the US Securities and Exchange Commission, explicitly supported
business media serving as unofficial regulators to monitor financial corruption.
Many of todays most talented Chinese journalists launched their careers in the business press, which at the
time offered higher salaries and more freedom to operate. By 2000, with economic reforms bolstered by Chinas
preparations to enter the W TO,
business media diversified and
multiplied with many new titles
reporting on the wider aspects of
Chinas political economy. However,
while the government values the role
of an independent press in a market economy, it still favors its own media and uses these resources to maintain its
influence. For example, the CSRC designates certain papers and magazines, such as the China Security News and the
Security Times as the only official forums for listed companies to disclose financial reports and official statements.

..most talented Chinese

journalists launched their
careers in the business press

Most newspapers
are localized

Although most media in China are ultimately stateowned, newspapers and magazines can be divided into
two categories: official state-run and independentcommercial. Almost all of the independent-commercial
publications are part of media groups led by Party or
government newspapers, but they behave differently.
Both kinds of newspapers must compete in the market,
rely on circulation and advertisement for revenue, and
are subject to the same system of censorship. However,
official newspapers are older, conservative institutions
that tend to act as the mouthpieces of the government
or Party; whereas independent-commercial papers were
created after a wave of commercialization spurred by
economic reforms and are more consumer driven.
While both categories of newspapers are capable of
producing a professional level of journalism, official
media tend to be fairly sanitized, and the independentcommercial outlets can verge on the sensational.
Consumers gravitate towards the independentcommercial newspapers because of their hard-won
reputation for investigative journalism and tantalizing
content. However, bureaucrats, business leaders, and

This provincial focus remains in place even though most

local newspapers host dynamic websites. However, the
Internet has changed the way stories travel inside China.
A popular story can quickly become national news, even
when local cadres attempt to suppress it. For example,
when Xiamen officials attempted to use local media
to downplay protests over perceived dangers of a local
chemical factory, the story was widely covered by other
newspapers around the country and spread despite the
local efforts to suppress it.
Other developments to note: most major newspapers
now provide an online version; some use Weibo (a
Chinese equivalent of Twitter) and other social media
accounts. Many such as CBN Weekly, Oriental Morning
Post, and China Daily have iPad or iPhone apps as well.

Top 20 Newspapers by Circulation

1. Reference News () 3,180,000

13. Yanzhao Metropolis News () 995,000

2. Peoples Daily () 2,800,000

14. Qianjiang Evening () 951,000

3. Yangtze Evening Post () 1,800,000

15. Urban Express () 950,000

4. Guangzhou Daily () 1,680,000

16. This Evening () 910,000

5. Information Times () 1,480,000

17. Peninsula City Daily () 900,000

6. South Metropolis News () 1,400,000

18. Southern Daily () 850,000

7. Yangcheng Evening News () 1,170,000

19. Wuhan Evening () 850,000

8. Chutian Dushibao () 1,140,000

20. Dahe News () 830,000

9. News Express () 1,130,000

10. Qilu Evening News () 1,050,000
11. Global Times () 1,040,000
12. Xinmin Evening News () 998,000

Source: Baidu Zhidao (Media claims of their size of circulation

are unverifiable; this list is for reference only and indicates
relative market position of Chinas leading newspapers.)

MSL China Executive Whitepaper

PR and the Party - the truth about media relations in China

Lifestyle
Media

Internet
Portals

Television

Lifestyle media in China have proliferated along with

the growth of the Chinese middle-class and consumer
culture. Many of the Wests leading lifestyle magazines,
including Cosmopolitan, VOGUE, GQ, Mens Health, Elle,
and Harper's Bazaar now produce Chinese editions.
Due to their reputation as premium international
publications and their readerships high income level,
these publications have among the highest advertising
revenues in the market. Meanwhile, Chinas homegrown
lifestyle media remain the most adept at using local
insight to catch reader attention, and offer their glossies
at lower prices.

The largest commercial news websites in China are

owned by Sina, Sohu, Netease and QQ, the first three of
which are listed on NASDAQ. Second only to television,
these portals are key sources of information in China
the first place younger and more highly educated people
go for news. Since government regulations prevent
these sites from producing their own news, they have
become aggregators of content, compiling stories from
other media while allowing Internet users to voice their
opinions through blogs, micro-blogs and electronic
bulletin boards. Blogging and micro-blogging have
become especially popular in China as many journalists
blog to share views they might otherwise be unable to
express in their full-time media jobs.

Television is king in China

Because young Chinese consumers are, in the vast

majority of cases, the first generation in their family
to enjoy high disposable incomes, they have a
voracious appetite for topics such as fashion trends,
new technologies, and health & leisure. Case in point:
by focusing on advising nouveau riche men on which
clothes and
accessories
to wear, which
cars to drive
and what ultrastylish cuttingedge smart phone will best help them to manage their
lives, fashion magazines for men have achieved an
annual growth rate of more than 30% in China since
2006.

Web portals such as Sina and Sohu can be regarded

as just another form of traditional media, but China
is also a leading social media market more than 265
million people log on to the Chinese equivalents of
Yo u Tu b e , F a c e b o o k ,
Tw i t te r, a n d L i n ke d I n .
Social media have already
become a critical area
for all communications
professionals, and
no media strategy is complete without them. (See
MSL Chinas whitepaper Best Practices in Chinese
Microblog Communications for more information on this
fast-changing topic.)

many journalists maintain

blogs and microblogs to
share views

State-controlled television is king in China. It is the

farthest-reaching medium, penetrating into 97% of all

Chinese households. In 2010, television captured 76% of

Chinas $96 billion advertising market. However, despite
its staggering ubiquity, television lacks a strong hold on
some important niche audiences. Because programming
is understood to be strictly censored, younger and
more highly educated demographics tend to trust it
less than the middle-aged and older generations do
(especially as a source for news). As in the West, Chinese
television faces fierce competition from online news and
entertainment.
The bureaucratic and political nature of Chinas television
industry is reflected in its organizational structure. The
top player in the market is China Central Television
(CCT V), which is directly controlled by the State
Administration of Radio, Film and Television (SARFT).

In a US context, this would be akin to combining the

three major networks under one company and placing it
under the management of the Federal Communications
Commission. While every province has its own network
for hosting local channels and programming, CCTV is
the only national network.
Although CCT V is the reigning king,
provincial and municipal networks have
gained national audiences via cable and satellite. Some
such upstarts have proven to be significant challengers.
Hunan Satellite Televisions Super Girls, an American
Idol-like talent contest, became the nations number one
series. The final episode drew over 400 million viewers,
making it one of the most popular shows in Chinese
broadcast history. The show consequently drew official
and public criticism for promoting "vulgarity". Eventually
the SARFT issued a regulation barring the primetime
airing of all talent shows with mass participation via
satellite TV channels at provincial or vice-provincial
level". Critics argue that the SARFT issued this regulation
as a result of CCTV lobbying to protect its position as the
market leader.

Post-Mao Media Reforms

and Milestones
1979 Newspapers, magazines, TV and radio stations allowed to sell advertising; 69 newspapers nationwide,
all run by government officials of the Communist Party.
1980s Government begins to cut subsidies for state-controlled media.
1983 Media outlets permitted to profit from ad sales.
1990s Government phases-out subsidies for all but a select few state-controlled media, mouthpieces such
as Xinhua News Agency and Peoples Daily.
2003 Communist Party ends mandatory subscriptions to most official party newspapers and magazines;
subsidies to some government mouthpieces are phased out.
2009 Regulations ban websites from conducting online polls on current events; Internet users are required
to use real names when posting responses to news stories.
2011 Market has over 2,200 newspapers, 9,000 magazines, and 500 million Internet users.

MSL China Executive Whitepaper

PR and the Party - the truth about media relations in China

PR in the PRC
Communications and Public Affairs in China share fundamentals with the West;
professionalism, relationships, and the right message are what matter most. That said, PR
in China is unique for three main reasons: a single party monopolizes politics; commercial
media outlets are relatively new and developing institutions; and the economy is growing
rapidly. When building and executing any communications strategy under such conditions,
it is imperative to consider the risks associated with government influence, market
maturity, and the potential for corruption.

The Party-states Influence

on Media
No analysis of Chinas media landscape would be complete without a description of how media are controlled by the
Party and state. Chinas media controls are primarily political, rather than commercial, in nature. As a result, MNCs
operating in China have, by default, become a favorite target for criticism and negative press. The media space that
would otherwise be allocated to discussing the effectiveness of government policies and political scandals has to
be filled with something; and because consumers are highly aware of famous brands, media discussions on those
brands and what they are doing in China, for better or worse, remain a hot topic. It is also important to keep in mind
that anything, from the price of your products to your HR policies, your companys nation of origin, or a planned
acquisition, could suddenly turn into a political problem. All communications professionals dealing with the China
market need to have a basic understanding of how the media are controlled by the state.
A central question in Chinas communications industry is how to create and maintain market-driven and profitable
media outlets, but which do not question the Partys authority. Chinas Chief Propagandist, Li Changchun, has stated
that the essence of his job is to unite the spirit of the Party with public opinion. This is accomplished through two
main strategies: The Three Closenesses, a broad principle that sets guidelines for all media, and Public Opinion
Channeling, a recipe for how the Party leverages its command over media while allowing a relatively high degree of
freedom.
The Three Closenesses principle being close to reality, close to life, and close to the masses was launched by
the Party Central Committee after the ascent of the Hu Jintao administration in 2003. It is a call for all journalists
and media to accurately reflect the needs of Chinese society. It is taken to mean that official media should not
limit themselves to stale coverage of government leaders activities, the latest official pronouncements, and other
politically homogenized content, but neither should commercial media over-sensationalize events just to sell more
copies or advertisements. The policy is a two-pronged approach to make state-run media more competitive while
encouraging tabloids to take responsibility for accurate reporting and steer clear of inflammatory political discourse.
Opinion Channeling is an attempt to leverage Chinas dynamic media to benefit political stability. Rather than directly
prohibiting specific statements and/or topics, the Party, through its Propaganda Department, actively pushes a
general agenda that more subtly influences the content and quality of Chinese media. This strategy is a response to
the commercialization of information and the rapid development of new outlets and technologies like social media
and mobile devices. In cases of sensitive incidents, such as ethnic riots or tainted food, the Party attempts to get
ahead of the story. By creating timely messages delivered through the most popular channels, mass coverage is

generated. This is a much more sophisticated approach than the traditional force-feeding of messages to the public.
In short, the Party now tends to participate in the conversation as an authoritative source, rather than broadcasting
its messages as indisputable truths. This also means that the Party sometimes hides its presence while participating
in the conversation. For example,
a given journalist or online
commentator may not have overt
Party or government credentials,
but could be serving as a proxy.

the Party now tends to

participate in the conversation
as an authoritative source

Media Controls in Action

Treatment of a major railway accident in Wenzhou in July 2011 is an example of Chinas attempts at public
opinion control and the Three Closenesses. After allowing several days of active media scrutiny and public
venting online via tens of millions of Weibo (microblog) postings, the government ordered journalists to cease
reporting on questioning eyewitness accounts. (The disaster caused an estimated 40 casualties and 200
injured.) Instead, the spotlight was shifted to coverage of "touching stories", such as local villagers rescuing
passengers and blood donations from sympathetic citizens. The directive stated that further reporting on
the accident should be in the spirit of major love in the face of major disaster and ordered "Do not question.
Do not elaborate. No re-posting from micro-blogs will be allowed!" Furthermore, the directive forbade news
media from other provinces from sending reporters to the scene of the accident and stated that commercial
media and online portals in particular must carefully manage their behavior.

MSL China Executive Whitepaper

PR and the Party - the truth about media relations in China

Maturing Market

Corruption

In the 1980s, there was a systemic over-reliance on paid-for Chinese media coverage. When the PR industry began
to emerge in China, most people, including industry professionals, interpreted public relations to mean simply
guanxi, or relationships the Chinese social custom of networking and favor mongering. This misunderstanding
of the communications profession was compounded by a lack of business ethics and journalistic guidelines in a
rapidly developing commercial media industry. The pay-to-play phenomenon became especially prevalent in the
1990s. The use of gifts or cash incentives between companies and PR representatives became a common way of
inducing journalists to write favorable stories. Some revenue hungry local media in second- and third-tier cities, as
well as some trade media, still behave this way today. However, with the development of the market economy, there
has been a surge in competition. The Internet has become a serious competitor of traditional media, and audiences
are becoming increasingly discerning. These factors challenge media on all fronts to attract readers through
viable, integrated content. Moreover, a gradual push for reporters and editors to become more sophisticated and
professional is now evident just as in more developed markets where PR professionals are expected to pitch a great
story that can hook a readers attention in
order to be effective.

While some companies continue to take shortcuts that may produce superficial, short-term results, it is no longer
possible for enterprises and PR companies to build sustainable and valuable media relations through guanxi or
payoffs. Unfortunately, the incentive for businesses and media outlets to forge corrupt business relationships
through bribery remains a characteristic of the industry in todays China.

PR professionals now need

to pitch a great story

Last year, the government confirmed that Zijin Mining Group, the countrys biggest gold producer, had tried to bribe
reporters from Shanghai Securities News and the Xiamen Evening News to hush up a major toxic waste leak at the
companys copper mine in Fujian province. In another case, a product manager from the Chinese dairy producer
Mengniu Dairy Group and a representative from the companys local PR agency were arrested for spreading
malicious rumors online, claiming that a competitors products were harmful by alleging there was a chemical that
caused premature sexual development in children. See the box below on media blackmail about another common
industry hazard.
While the media industry in China is still occasionally marred by unprofessional, unethical and even illegal practices,
at MSL China, we believe that the only way to build good media relations, and ultimately a strong reputation for your
brand, is by providing journalists with insights and valuable information. This approach needs to be founded on a
deep understanding of local media, our clients and their industries, as well as the mindset, habits, and preferences
of consumers and other stakeholders. We call this Knowledge-Driven Media Relations (KDMR). During the past
decade, MSL China has applied our KDMR philosophy for all of our clients with great success. We see this as the main
reason why our agency has grown faster than any other international agency in China. At a glance, our approach may
seem like standard operating procedure. By tailoring this global approach to China, however, we help our clients to
create a unique and sustainable competitive advantage over less sophisticated local and multinational competitors.

Media Blackmail
It can happen like this: the PR manager of a famous MNC opens a local newspaper or trade publication to
discover a reporter has trashed their company or product. After making a few calls the PR manager finds the
journalist who wrote the negative story never contacted anyone from the MNC to get their side of the story.
Extremely concerned, the PR manager calls the journalist to find out what prompted the attack on his brand.
The journalist replies, Oh, I heard some rumors in the market from my sources would you like me to do a
follow-up story to clarify the situation? By the way, do you mind talking to my advertising department first? If
you place an ad in our publication, we could certainly make room for another article about your company and
its success in the market.
Heres what you can do about it:
- Proactively build and manage your reputation in the market; if you have a solid reputation you can weather a
few unsubstantiated attacks from small voices in the media.
- If this is an important media source for you, and you or your agency has been diligent in building your
network, you can try going over the journalists head and diplomatically raise the issue with the editor, but
this is useless if the editor is in on the game.
- You can try the court system, but libel cases are extremely hard to win; and you run the risk of blowing a
relatively small issue out of proportion.
- Chinas Consumer Day is March 15; this day is a media feeding frenzy on product quality and safety issues.
Any consumer product company in China must have a strategy in place for monitoring and rapid response.

11

MSL China Executive Whitepaper

PR and the Party - the truth about media relations in China

3. Build and Nurture Guanxi

"We Understand"

- MSL Chinas KDMR

In the following, we share some of the best practices and recommendations garnered

example, a journalist on the energy beat may want to

know about the interaction between oil prices and capital
markets, while a healthcare journalist may be interested
in the sociological aspects of, as well as the latest global
advances in, the treatment of a particular disease.
They will be highly appreciative when your company
offers them a short training seminar instead of a press
conference.

Insight, strategy, and appealing messages are critical,

but relationships are and will remain important in
China. Journalists do not want to be taken for granted
and want to know you care about them as people and
as professionals, and they want to know whats going
on at your company even when there is no news to
publish. Any ongoing media outreach program should
be based on regular visits, news updates, and other
points of contact to keep the relationship warm. Too
many PR managers in China take a transactional
approach, expecting every contact with a journalist to
result in coverage. But in fact, one of the best ways to
build an emotional connection with journalists is to
share knowledge, not just about your company but also
about your industry. This is especially useful because
many journalists in China are young and often have not
received much training from their organization they
may be eager to learn more about macro issues. For

Over the years, we have seen that such investments tend

to pay off because they establish you as a trusted source.
Whenever journalists need more information about your
industry, you will be the first person they call for a quote.
Another thing to keep in mind is the importance of a
systematic approach to guanxi. In a rapidly developing
market like China, both PR managers and journalists
tend to move from one employer to another. For this very
reason, successful companies and PR agencies must
take a state-of-the art, database-driven CRM approach to
media relations.

Methodology in China
4. Create Your Own Media

from two decades of working with the Chinese media.

5. Dont Ever Be Tempted By or

Tolerate Unethical PR Practices

4
5
1 2

1. Understand Local Target

2. Develop Tailored News Angles
Audiences, Industry, and Media that Catch Media Attention
It may sound standard, but many multinational
companies fail to properly analyze who they need to
communicate to through local media, which factors
are shaping their companys industry in China, and how
journalists perceive and report on the company and its
competitors. This is a simple and logical cornerstone of
any communications campaign, yet it is still surprising
how frequently PR managers in China are unwilling to
invest in it because they think their brand, their guanxi, or
some other factor will be enough to generate favorable
coverage. There are many ways of achieving deeper
understanding; focus groups with consumers, media
audits to gauge journalist and trend-setting perceptions,
as well as traditional and social media reviews to see
whats already available in print or in the blogosphere.

It used to be much easier for MNCs in China to grab

headlines. A decade ago, a CEO visit or a multi-million
dollar investment would ensure that journalists took
notice of your company. Not anymore. As official and
independent-commercial media compete for consumer
attention, successful communications in China will
depend on appealing to and aligning with a complicated
mix of government agendas, social concerns, broad
groups of constituents such as JV partners and influential
organizations, and geographically relevant audiences.
The latter is important as China is a large and diverse
country. MSL China consultants have helped clients tailor
messages to key audiences to reflect alignment with the
governments latest Five-Year Plan; created social media
addressing the wide generation gap between Chinese
born in the 70s, 80s and 90s; and provided consumer
information for a mixture of technology aficionados and
neo-luddites.

With the expansion of todays digital media platforms

and technologies, most of the worlds leading companies
have developed content-rich websites intricately
interwoven with social media, allowing them to broadcast
their messages 24/7. However, most MNCs have not
made corresponding investments in China. Local
corporate websites and social media initiatives could
benefit from simply reapplying the best practices from
global markets, while sourcing strong, locally-relevant
content to effectively engage local audiences. This is a
giant missed opportunity for multinational companies
most job seekers and business journalists in China
conduct in-depth reviews of corporate websites. Making
sure that your owned media are up to snuff gives you an
excellent channel for communicating your commitment
to the market, promoting your CSR programs, and
attracting increasingly scarce local talent.

Positive news coverage can be bought in China - each

year, a few journalists and PR managers are charged
with corrupt pay-to-play practices. It is important to
understand that, although some local practitioners
condone this practice, it is an approach that does not
deliver the best long-term results and violates Chinese
law. So even if your competitors attack you by paying
journalists for negative coverage about your company or
start negative rumors online, it pays off in the long run
to take the high moral road. Letting the market lower
your standards of practice can be costly; there are legal
penalties as well as huge reputational risks. Every year,
MSL China consultants are asked to support companies
who have run into trouble in China after following the
bad advice of local PR representatives.

13

MSL China Executive Whitepaper

PR and the Party - the truth about media relations in China

Media Profiles
The following is a general lay of the land for Chinese news media. Included are
descriptions of a few influential newspapers, business and lifestyle publications, online
portals, and television networks. Since this is a general overview, we do not delve into
vertical media such as automotive, technology and healthcare, although these are vibrant
and highly influential in their respective sectors.

Global Times () (est. 1993, circ. 1.04 million)

Part of the Peoples Daily Media Group, this daily is dedicated to delivering international news and reporting
on Chinas engagement with the world. In 2009 the paper launched an English edition as part of the Chinese
governments growing interest in spreading its views in international forums; this publication focuses more on
business and economics and is an alternative English-language media to China Daily. Despite its affiliation with the
main Party mouthpiece, Global Times is relatively outspoken and sometimes publishes muck-raking or controversial
articles.

Guangzhou Daily () (est. 1952, circ. 1.6 million)

Newspaper Profiles

The official publication of the Guangzhou Municipal Government, Guangzhou Daily focuses on local news and
information, and is one of the most popular mainstream media in southern China, boasting one of the largest
circulations among dailies in the entire country. Despite being an official publication, it is highly readable, focusing on
lifestyle and popular news, especially local information from the Pearl River Delta area.

Cankao Xiaoxi () (est. 1931, circ. 3 million)

Southern Metropolis Daily () (est. 1997, circ. 1.4 million)

Published by the state-run Xinhua News Agency, Cankao Xiaoxi is one of Chinas leading national daily newspapers. Its
original purpose was to serve as an internal global news report for the PRCs political elite. Since 1985, its distribution
has been widened to the general public. Cankao Xiaoxi contains translations of news articles and commentaries from
foreign news agencies and newspapers. Although its content primarily consists of accurate translations of the original
source material, it runs its own headlines, creates its own captions, and often deletes references unfavorable to
China's image.

Distributed mainly in the Pearl River Delta area, this commercial newspaper is known for its hard-hitting investigative
journalism and edgy commentary. Its editors and journalists frequently come under fire from the authorities. As one
of the nations largest and most influential newspapers, its reports are reprinted in many smaller regional media
outlets.

Peoples Daily () (est. 1948, circ. 2.8 million)

Inexpensive and readable, the Beijing Evening News is one of the capitals most popular dailies especially with older
readers. However the Beijing Evening News faces challenges from other emerging general newspapers and online
portals, and its circulation has been declining.

A newspaper under the Central Committee of the Communist Party of China (CPC), People's Daily distributes the
latest news and policy information of the Party and government and major domestic and international news releases
from China. It is the mouthpiece of the CPC and distinctly patriotic in tone. MNCs achieving positive coverage in
Peoples Daily can be perceived in the market as being in favor with the Party and government. In addition to its main
Chinese-language edition, it has editions in English, Japanese, French, Spanish, Russian, and Arabic. It also has an
on-line version, peopledaily.com.cn, which is one of the largest Chinese news portals.

China Youth Daily () (est. 1951, circ. 500,000)

Run by the Central Committee of the Communist Youth League of China, China Youth Daily is a popular official daily
newspaper and the first independently-operated central government news media portal in the People's Republic of
China. Although its large reader base is due in part to mandatory subscriptions at universities and high schools, it is
a high-quality and well-respected newspaper, especially because of its focus on human interest over politics. As with
the Peoples Daily, positive coverage in this newspaper can provide MNCs in China some political cachet.

China Daily () (est. 1981, circ. 570,000)

The leading English language daily in China, it is the most popular local newspaper among foreigners living in the
PRC. Twenty years ago, China Daily was a dull litany of positive news about China and trite observations of foreign
countries. Because it is published in English, it receives less scrutiny from censors, so in recent years its editors have
significantly improved both print and web editions, and it has become a more compelling source of information about
China and the world. MNCs and their PR representatives value its coverage of their business and events such as CEO
visits, since headquarters can read the clippings without translation, but its local impact is not as high as Chineselanguage papers.

Beijing Evening News () (est. 1958, circ. 1.2 million)

Beijing Times () (est. 2001, circ. 800,000)

Comparatively lowbrow, the Beijing Times mostly covers local news and reacts quickly to breaking news, including
major political events, crime, and safety issues. It launched a supplement called CSR Weekly in June 2010, with more
than 8 pages dedicated to CSR related news, making it a mainstay for corporate PR.

West China City Daily () (est. 1995, circ 1.15 million)

Founded in 1995 by former staff members of Sichuan Daily, West China City Daily is the leading paper in Chinas
less-developed western region. It is the most popular source of news and information for all market segments in the
region, from white-collar professionals and luxury brand consumers to government decision-makers.

Oriental Morning Post () (est. 2003, circ. 150,000)

Managed by the Wenxin Media Group, this daily is circulated in Shanghai and neighboring Jiangsu and Zhejiang
provinces. Focusing on national finance and economic news, the target audience of the Oriental Morning Post is
the regions new generation of upper middle-class residents. The newspaper is known for its professionalism and
integrity; it professes to be the New York Times of China.

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MSL China Executive Whitepaper

PR and the Party - the truth about media relations in China

Newswire Profile
Xinhua News Agency () (est. 1931)

Caijing () (est. 1998, circ. 225,000)

As the state news agency of the Peoples Republic of China, Xinhua is the governments primary collector and
distributor of information in China and the most authoritative source of information on Chinese government affairs.
Employing more than 10,000 people in 107 bureaus worldwide, 31 of which are in China, Xinhua News Agency is
the largest wire service in the world. The agency provides daily 24-hour news information to the world in Chinese,
English, French, Spanish, Russian, Arabic and Portuguese. As most Chinese newspapers do not have overseas
bureaus, Xinhua is their primary source for international reporting. Just as with other media in China, the government
has cut its funding of the agency and it now generates revenue through public relations and information services. In
2010, it launched its 24-hour English-language news channel China Xinhua News Network Corporation (CNC World),
which is headquartered in Hong Kong. CNC World will reportedly be a strategic focus for Xinhua News Agency in the
next five years.

As a bi-weekly glossy magazine focusing on the countrys economics and politics, Caijing is one of the leading
business magazines and is widely quoted by international media such as The Wall Street Journal, Reuters, and the
Financial Times. Its chief editor Hu Shuli and the majority of its staff journalists left the magazine in 2009 due to a
dispute over editorial rights. Caijing was once considered to be one of the most aggressive and insightful publications
in China but subsequently seems to have lost some of its luster.

Business Media Profiles

21st Century Business Herald (21)
(est. 2001, circ. 632,000)
A member of the Nanfang Daily Group, this paper is published five days a week and is one of the most powerful
financial newspapers in China. The paper is known for its aggressive reporting and critical commentary. A pioneer in
the Chinese media industry, it was the first Mainland financial paper to enter Hong Kong with a special edition for the
market. It also has bureaus in New York, Los Angeles, London, and Moscow.

Lifestyle Media Profiles

Modern Weekly () (est. 1980, circ. 497,500)
A glossy tabloid published in Guangzhou with a focus on fashion and culture, Modern Weekly is Chinas leading paper
with weekly distribution. It is well known for its personal interviews and business section. Targeting upper income
Chinese and those that inspire to be, it is a favorite advertising platform for luxury, fashion, and other high-end
consumer brands.

The Bund () (est. in 2002, circ. 150,000)

Named after Shanghais famous riverfront, this weekly has a cosmopolitan slant and mainly focuses on the Shanghai
culture scene. It is popular for its interviews, as well as its fashion and entertainment content. Because of its focus on
Shanghai, the magazine is comparable in nature to The New York Times Magazine.

Economic Observer () (est. 2001, circ. 380,000)

Sanlian Life Weekly () (est. 1995, circ. 200,000)

A weekly published on Mondays, it strives to distinguish itself from other business media through in-depth analysis
and an attractive layout. Providing editorial space for a wide variety of experts and scholars, the magazine focuses on
economics, politics, and culture. The papers pink-tinted pages evoke those of the UKs Financial Times and appeals
to intellectuals.

Published by the Sanlian Bookstore, a unit of the China Publishing Group in Beijing, this weekly covers politics,
economics, human interest, culture and technology for smart, urban audiences. It can be compared to The Atlantic
or The New Yorker in the United States. After drawing criticism from censors, it has recently shied away from current
affairs and reports more on lifestyle related topics targeting the growing Chinese middle class.

China Business Journal () (est. 1985, circ. 380,000)

Lifestyle () (est. 1993, circ. 300,000)

Published weekly under the direction of the Chinese Academy of Social Sciences, the China Business Journal is one
of the most influential business and economic magazines, with a strong focus on the topic of business management.
The paper takes a management perspective and discusses how companies can improve, but without the tabloid
criticism of leaders, business performance or products which is common in other Chinese media.

Published twice a week in Beijing, with Style Weekly on Monday and Southern Life Weekly on Thursday, Lifestyle
includes sections such as Fashion, Hot Topics, Truth, New Knowledge, Showtime, Psychology, Nutrition, Mother and
Child, Tourism, and Autos. It is affordable and has strong mass appeal.

China Business News () (est. 2004, circ. 250,000)

Like Bloomberg, the CBN Group operates print and broadcast business news services. The Groups newspaper, China
Business News, is published Monday through Saturday; it focuses on breaking news in business, economics, and
finance. The Opinions & Comments section penned by guest columnists is increasingly popular with business readers.
Many international news media source information from the paper because it is fast and authoritative.

New Weekly () (est. 1996, circ. 285,000)

Possibly the trendiest of Chinese lifestyle publications, after more than 15 years of development, New Weekly has
earned a reputation as a keen observer and reporter of social changes in the country. Based in Guangzhou, New
Weekly is one of the countrys first glossy magazines. A biweekly, it is published on the 1st and 15th of each month.

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MSL China Executive Whitepaper

PR and the Party - the truth about media relations in China

I n t e r n e t Po r t a l P r o f i l e s

TV Station Profiles

Sina.com () (est. 1999)

China Central Television () (est. 1958)

Chinas leading Internet portal is headquartered in Shanghai. According to Alexa, Sina.com.cn was 14th in the Top Site
rankings and 3rd in Traffic rankings within China. Sina.com has over thirty integrated channels, including news, sports,
technology information, finance, advertising services, entertainment, fashion, and travel. Sina.com also provides
services such as SMS, email, a search engine, games, entertainment and Sina Blog. The Sina Micro-blog, Weibo, is
Chinas equivalent of Twitter. While Twitter is blocked by local authorities, Sina Weibo and has become hugely popular,
quickly amassing over 200 million users, nearly eight times as many as Twitter. According to its 2010 annual report,
Sinas net revenue reached $402 million, showing 12% annual growth.

Based in Beijing, this national network is directly controlled by the State Administration of Radio, Film, and Television
(SARFT). CCTVs most-watched program is the Network News which broadcasts daily from 7:00 to 7:30 p.m.,
simultaneously on at least one state-run TV channel in every provincial and municipal market. The networks annual
New Year's Gala is also markedly popular, drawing one of the largest TV audiences worldwide with an estimated 700
million viewers. The network comprises sixteen channels, including CCTV-2, its business channel.

Sohu.com () (est. 1996)

The hit series Super Girls propelled Hunan TV to become China's second biggest television network after CCTV. The
network is based in Changsha in Hunan Province and Xining in Qinghai Province. Since 2009, Hunan TV has sold its
popular programs to markets across East Asia and has signed contracts with international producers to produce and
distribute original programming.

While Sina.com is more news focused, its main competitor Sohu.com is more entertainment and lifestyle focused
in content. Sohu was ranked as the world's 3rd and 12th fastest-growing company by Fortune in 2009 and 2010,
respectively. As of August 2010, Sohu is currently 46th overall in Alexa's Internet rankings. Sohu was selected by
Chinas Olympic authorities to provide exclusive services to construct, operate, and host the official Beijing Olympics
website. According to its 2010 annual report, the companys net revenue was $612.8 million, showing annual growth
of 19%.

Netease () (est. 1997)

Operating the popular portal 163.com, the company is different from Sina and Sohu in that the company generates
huge revenues from fees it charges users for hosting online games (including World of Warcraft) and wireless valueadded and other fee-based premium services, as well as online advertisement sales. According to its 2010 annual
report, the companys net revenue for the year was nearly $834.5 million.

Tencent (QQ) (est. 1998)

(Referred to as QQ) QQ is the most popular free instant messaging platform in China. There are over 600 million
active QQ users (including QQ IM users), making it one of the world's largest online communities. In February 2011,
QQ.com ranked 10th overall in the Alexa Internet rankings, one place behind Twitter. Aside from its chat program, QQ
has also developed many other features including a search engine, games, virtual pets, ringtones, and blogs.

Hunan Television () (est. 1970)

Phoenix TV () (est. 1996)

This Hong Kong-based Mandarin-Chinese television-broadcaster is permitted to air its news in the PRC one of
the few non-government controlled television broadcasters. Phoenix TV has an excellent relationship with the
government; its Beijing offices are located in the Diaoyutai state guesthouse. Phoenix TVs news program has a
reputation for covering events and providing perspectives that are not available on other networks, and its announcers
are young and energetic compared to state TVs homogeneous anchors. Phoenix TV now broadcasts to over 150
countries and regions around the world and has an estimated 300 million viewers, 150 million of whom are in China.
News Corp holds a 17.6% stake in Phoenix Satellite Television Company Limited.

CBN TV () (est. 2003)

CBN TV is part of the second largest Chinese media group SMG and is the only professional Business TV channel
targeting investors. Broadcasting 20 hours per day with 12 hours of live programs, CBN TV covers core investment
markets in China and provides insights from over 30 market traders and security analysts. The channel mainly focuses
on finance, markets, and trading information and its portfolio includes programming such as Stock Today and Finance
Night Line. It covers 28 provinces and cities and has 12.9 million viewers in Mainland China, with another 880,000
viewers in Hong Kong. It was the first mainstream TV channel from the Mainland to enter Hong Kong.

Dragon TV () (est. 1998)

First launched in October 1998 as Shanghai TV, it changed its name to Dragon TV on October 23, 2003. It has the
widest broadcast news coverage among the provincial satellite TV stations, and more than six hours of daily live news
shows. Currently, Dragon TVs signal covers most of China, including Macao, Hong Kong, and Taiwan, and is also
available in North America, Japan, Australia, Europe and other areas. All of Dragon TV's news programs are owned by
the parent company SMG TVs news production center Asias largest television news production and broadcasting
organization.

Travel Chanel () (est. 2002)

As the only satellite channel focusing on tourism and leisure in China, it garners a large viewership and is a popular
advertising platform for high-end brands. The channel also broadcasts global golf and tennis events to support its
position as the lifestyle media for Chinas rapidly growing middle and upper classes.

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MSL China regularly publishes Executive Whitepapers with insights

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MSL China Executive Whitepaper
August 2011
Copyright MSL China