Following its bid to expand into the Chinese market, [WAMN 29-Jun-04], News Corporation now plans to establish the first advertising company in the country supported entirely by foreign investment.
Foreign companies are normally entitled to operate wholly-owned subsidiaries within four years of agreement by China's World Trade Organization, but NewsCorp's Star China has bypassed this with the aid of the Closer Economic Partnership Arrangement.
The Ministry of Commerce has already given its blessing for the creation of Star Group (China) Corporation, which aims to set up in Shanghai as soon as possible under the leadership of president Jamie Davis.
Market analysts see the venture as a breakthrough and a major change for NewsCorp's development in China. Zhao Xiaobin, president of the Global China (Beijing Media Consulting Company, agrees: "The establishment of the new company means Star's operating business has really entered China."
Data sourced from: People's Daily (China); additional content by WARC staff
