BEIJING - CHINA has announced tough new rules to crack down on the explosion of audio-visual content on the Internet, reiterating that sex and politically sensitive material will not be tolerated.

Only state-controlled entities will have the right to operate websites that post audio-visual content, according to the rules, placing into doubt whether Chinese will have access to foreign video sharing sites such as YouTube.

It was not immediately clear how the new rules will affect foreign-based Internet video sharing sites, such as YouTube, or Western companies already operating in China, such as Yahoo and Google.

'Those who provide Internet audio and video services should insist on serving the people, serve socialism... and abide by the moral code of socialism,' a government notice said.

All content must be free of violence, sex, or gambling, and cannot reveal state secrets or portray morally, socially or politically harmful situations, according to the notice.

'These regulations have been formulated to safeguard the interests of the nation and the public and to safeguard... the healthy and orderly development of audio-visual services,' it said.

The regulations were jointly issued by the Ministry of Information Industry and the State Administration of Radio, Film and Television (SARFT). They were published on the SARFT website recently and will go into effect on January 31.

Under the new rules, websites seeking to offer audio-visual services will have to seek a broadcast licence, renewable every three years.

'Those applying for Internet audio-visual service (licenses) must at the same time... be solely state-owned enterprises or enterprises whose shares are controlled by the state,' the notice said.

The rules prescribe fines for companies and senior managers violating the policy and are the latest attempt by China's communist government to control and patrol the Internet for content it deems unhealthy.

Paris-based media watchdog Reporters Without Borders has labelled China's government an 'enemy of the Internet' for its blocking of thousands of sites and jailing of people who post information that authorities do not like. -- AFP