(Associated Press via NewsEdge) China is trying to tighten control over foreign investors in Internet ventures in a crackdown that a state newspaper said could see some companies stripped of operating licenses.
It wasn't clear how the crackdown might affect industry giants such as Yahoo, eBay, and Google, which have launched portals, search engines and e-commerce sites with local partners in China, the world's second-biggest online market.
Regulators say some foreign investors are using licenses, domain names or trademarks that are improperly shared by Chinese partners, the China Daily said.
A notice on the Web site of the Ministry of Information Industry, which regulates Internet businesses, orders companies to comply with rules on domain names and other regulations.
The crackdown adds possible legal complications for companies that have faced criticism from human rights activists for cooperating with the communist government's efforts to censor the Internet.
Regulators are eager to see benefits flow to Chinese companies, and require foreign investors to take on local partners and operate under rules that limit their ownership of ventures.
China capped foreign ownership stakes in Internet ventures at 50% under its World Trade Organization commitments to open markets to outside competitors.
Regulators say some have bought into Chinese companies without obtaining required government approval, while others fail to follow operating rules, the China Daily reported.
It said companies that fail to comply with the latest order could lose their operating licenses.
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