Here's a little something I wrote for the December issue of China Economic Review, based on my supposition that sooner or later the Chinese government will really think twice about the involvement of foreigners in some aspects of the Chinese Internet industry, even as minority investors. An extract:
The Chinese government knows that internet media is rapidly becoming more mainstream, not only through video-sharing and blogging, but also through big-ticket emerging technologies like 3G, mobile-video and IPTV. These have the potential to turn China's 120 million internet users into half a billion over the next decade and turbo-charge what has been a fringe medium.

Unlike traditional media, the internet has remained relatively wide-open to foreign investment. This was tolerated as long as it was seen as "technology" or as a marginal adjunct to the mainstream media.

But the blurring line between traditional and new media makes foreign-backed internet companies look increasingly like Trojan horses wheeling toward China's fiercely protected mass media. Recent content licensing agreements, such as Baidu's deal with Viacom for online distribution of MTV videos, may stoke such perceptions.
More at China Economic Review.