Websites have been displaying online advertisements without licensing mechanisms or clear laws to follow. Notwithstanding the intensive regulation of the advertising industry in China generally, no authoritative governmental organ has issued any laws that would unify standard requirements relating to online advertisement across the country effectively. Pilot projects have been carried out in Beijing, Shanghai and Guangdong provinces. A number of website operators have been selected and registered and have had advertising business permits issued to them. The programme is a trial run for regulatorsto assist them in formulating a more permanent licensing mechanism for online advertising activities.
Licensed websites are subject to regular checks on their advertising content and mode of operations.
A number of well-established websites, like Sohu, Netease and Sina, have already registered and received licenses in the pilot programme. A reported 27 licenses have been issued to domestic Internet companies in Beijing, Shanghai and Guangdong Province. This trial programme is an important step towards a regulated online advertising industry in China. This includes the Notice on Regulations of Internet Advertising Operation Qualification , which regulates the online profit-making advertisement activities of companies that provide network information services. The Notice applies to those companies with a business permit under the jurisdiction of the Beijing Municipality.