It emerged this week that a subsidiary of Rupert Murdoch's News Corp. group is under investigation by the Chinese authorities over allegations that it illegally leased satellite channels to local operators.
Under the current broadcasting rules in China, only prestigious hotels and residence compounds are permitted to air overseas programming such as CNN and HBO, and foreign channels must sell and transmit their signals through the state-run China International Television Corp.
However, in June of this year, the authorities began a probe into whether Beijing Rejian Hulian Advertisement Co. (also known as Beijing Hotkey Internet) had entered into illegal leasing arrangements with local cable operators, which are not permitted to air overseas content without government permission.
Speaking to the Wall Street Journal on Monday with regard to the allegations, Tan Yadong, vice president for channel development at News Corp. subsidiary Star TV confirmed that:
"News Corp. is under investigation by the Industrial and Commercial Bureau, and the cooperation with unapproved local cable networks is one of the reasons."
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