Industry-specific licensing rules and new controls on Internet advertising have been announced this year in China, supplementing the Measures for the Administration of Internet Information Services (the "IIS Measures") that were promulgated last September. The IIS Measures require companies engaged in "business-oriented" internet information services to obtain licenses while companies in "nonbusiness-oriented" internet services need only file a report in order to comply with local requirements in China. The IIS Measures prohibit the dissemination of several categories of information and impose record-keeping requirements on both Internet information providers and Internet access providers.

To supplement the Measures, the following new legislation was announced this year:

1) "Administration of Internet-based Pharmaceutical Information Services Tentative Provisions" (promulgated on January 1, 2001 by State Drug Administration, effective February 1, 2001). Applications to set up commercial internet pharmaceutical information services are subject to preliminary examination by provincial-level pharmaceuticals administrations and final approval by the State Pharmaceuticals Administration, whereas non-commercial internet pharmaceutical information services are subject to examination by provincial-level pharmaceuticals administrations and filing with the State Pharmaceuticals Administration.

2) "Administration of Internet-based Medical and Health Information Services Procedures" (promulgated on January 1, 2001 by Ministry of Health, effective from date of promulgation). Application to set up a medical and health information website or a website that posts medical and health information requires approval by the medical and health authority, application for a website operation license from the information industry authority or telecommunications authority.

3) "Administration of Internet On-line Services Business Site Procedures" (promulgated on April 3, 2001 by the Ministry of Information Industry, the Ministry of Public Security, the Ministry of Culture, the State Administration for Industry and Commerce, effective as of date of promulgation). Application to set up an internet on-line business service site requires approval by the related authorities, an operating permit and completion of registration procedures.

4) "Interim Procedures for Internet Advertising in Beijing" (promulgated by Beijing Administration for Industry and Commerce on April 16 2001, effective May 1, 2001). To post advertisements on the internet, prior registration with the relevant authorities is required.

Further information on these and related laws may be obtained from the Beijing and Hong Kong Offices of Morrison & Foerster LLP.

Because of the generality of this newsletter, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.