China's press regulator has told state-owned audio and visual publication houses to become self-supporting and more competitive in the market. The move also aims to make the industry more creative.

Audio and visual publication houses affiliated to higher learning institutions and local governments - except non-profit organizations - should complete the process before the end of this year, the General Administration of Press and Publications (GAPP) said Wednesday.

Companies attached to central government departments are required to complete the transformation before 2010.

The enterprises which refuse to take part in the process will be closed, according to the regulator.

The move aims to solve problems that have hampered the development of the industry in recent years. These include the lack of creativity and competitiveness, and slack supervision.

The administration is also to encourage the formation of larger regional and trade audio and visual companies. It says large state-owned newspapers and publication groups are welcome to incorporate audio and visual enterprises through acquisition.

State-owned companies in the field will also be urged to expand cooperation with private enterprises as long as they can ensure "a correct development orientation" and state ownership.

In addition, companies are being encouraged to diversify publication channels through cooperation with telecom and network operations. Those targeting rural areas, minors and ethnic minorities will be more strongly supported, the GAPP said.

(Xinhua News Agency July 31, 2009)