Expansion by foreign media companies in China may be slower than they have expected this year after the State Administration of Radio, Film and Television, tightened rules covering the TV and film production sector.

　　Sarft said yesterday in a circular that each foreign media company is allowed to set up only one joint venture for content production in China, according to the media regulator's official Website.

　　But privately owned Chinese medium firms complained that the rules mean they are blocked from getting foreign capital.

　　"If a foreign company has only one license to set up joint ventures here, it will certainly prioritize state-owned media firms that still control the content's broadcasting when they seek joint partners."said Wang Changtian, president of Beijing-based Enlight Media Co, a private entertainment program maker.

　　An analyst said the move shows the government is concerned about the speculative investment in the production sector after it was opened.

　　"But it will not be a long-term strategy as China still needs investment to expand programming content to introduce pay-TV in the near future,"said Yuan Fang, an analyst with Beijing-based CTR, a media research firm.

　　"It is more of an attempt to slow the transformation to allow for better control," Yuan said.

　　China opened the television and film production sector last November by allowing foreign firms to own as much as 49 percent of content making firms.

　　The joint ventures must have a minimum paid-up capital of US$2 million and use Chinese themes in two-thirds of programs.

　　Viacom, the third-largest US media company, formed its first joint venture in China with state-owned Shanghai Media Group to make and sell children's programs.

　　The company reported earlier that it had reached a verbal agreement with Beijing Television for a second venture to co-produce Chinese-language music and entertainment programs.

　　"We will be fully compliant with China's regulations," said Yi Chun, a spokeswoman with Viacom's China office, commenting on the new rule.

　　The firm now only provides its music programs to Beijing Television under a strategic alliance agreement, according to Yi.