Xinhua, the Chinese state media agency, has blamed violation of tax and other regulations by foreign news agencies for new rules preventing them dealing directly with local clients.
Yuan Xiaoping, deputy director of Xinhua’s central administrative office, told the Financial Times that "a large number of national laws and regulations" including tax laws, have been violated by "many news agencies", although he did not name the agencies involved.
Yuan went on to suggest in the interview that the tax problems could be prevented if foreign news agencies allowed Xinhua-appointed agents to handle all dealings with Chinese clients.
Under China's wide-ranging and internationally controversial media censorship rules, agencies are prevented from distributing material that, for example, “harms China’s national honour” or “disturbs the Chinese economy", according to the FT.
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