China to regulate the types of online ads and content

China has increased regulation and oversight on online advertising, with a number of areas being regulated to create "socialist spiritual civilisation".The State Administration for Market Regulation (SAMR) of China said in a document that online ads should be real and legal, insist on the right direction and express the content in a healthy way to meet the requirements "for the establishment of socialist spiritual civilisation and the promotion of the excellent traditional culture of the Chinese nation".

Several types of ads cannot be launched before inspection, including healthcare, pharmacies, food for special medical purposes, medical devices, pesticides, veterinary drugs and health supplements. Approved ads are not allowed to edited and add external links or QR codes. Additionally, approved ads need to resubmit an application for approval if there are amendments. 

SAMR also regulated the display of ads, For example, advertisers should clearly show the closing button on the ad. They are also required not to use the countdown to close the ad. After closing the ad, advertisers cannot relaunch the same ad on the same page again when users are surfing the internet. 

The authority is also planning to regulate ads for minors too. Advertisers cannot roll out ads about tutorial classes for kindergarten, primary and secondary school students. Moreover, advertisers are not allowed to use websites, web pages, and apps to target minors with content including healthcare, medicine, health supplements, medical equipment, cosmetics, alcohol, beauty, and online games that are not conducive to the physical and mental health of minors. 

Advertisers are responsible for the genuineness and legality of the ads too. 

The Chinese government has been regulating the internet alongside the industry players this year. For example, two Chinese influencers were fined by local tax regulators in Hangzhou due to tax evasion amid the Chinese government's tightened control over livestreaming eCommerce. Tax regulators in Hangzhou said they had discovered the cases through a big data analysis system where both live streamers Zhu Chenhui and Lin Shanshan were suspected of tax evasion.

After investigation, the regulators said Zhu had converted the income worth ¥84.5 million earned through at least six company partnerships from her personal income to the businesses' revenue, to evade taxes worth ¥30.4 million. She was fined ¥65.5 million. On the other hand, Lin used similar measures to evade taxes. The regulators said Lin had converted the income worth ¥42 million gained through at least four companies from her personal income, to the businesses' revenue to evade taxes worth ¥13.1 million. She was fined ¥27.7million. 

Also in September, in a notice issued by the National Radio and Television Administration, the authority will crack down on several areas including effeminate male idols and flaunting wealth. The notice said it requires broadcasters to ban "deformed" tastes such as "sissy idols" who do not conform to macho or masculine male stereotypes prevalent in traditional Chinese culture. It also required a ban on flaunting wealth, vulgar influencers and gossips. In the same section "boycotting being overly entertaining", the notice said there should have been more emphasis on traditional Chinese culture, revolution culture, socialist culture that they will help establish a correct beauty standard.

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