British media earlier reported that John Smith, chief executive of BBC Worldwide, its commercial arm, would lead a team of up to 10 senior executives on a visit to the mainland in August. The team is expected to meet with government officials and executives from several mainland television channels.

The BBC, as a foreign media entity, would be required to establish a joint venture with one or more mainland partners, who would retain a majority holding in any successful venture.

Walter Hellebrand, the BBC's head of communications, said the BBC was ``eager to explore business opportunities'' with current or potential partners in existing and emerging markets. BBC director of channels Wayne Dunsford told The Standard last October that the BBC was planning to launch a new channel in the mainland in the next three years.

The BBC delegation is expected to tread lightly on their visit given the acrimonious past.

The public broadcaster has a remit to provide the truth about modern China, warts and all, a charter that often sits uneasily among Beijing's sensitive leaders. The BBC's coverage of the Tiananmen massacre in 1989 lingers in the memories of foreign viewers and China's current crop of leaders.

But China remains a strong magnet to foreign media firms - because of its immense viewership and its growing clout as an advertising powerhouse. Advertising spent across all mainland media surged 25 percent last year to US$23.3 billion (HK$181.74 billion).

And while government control over the industry remains rigid, with media firms controlled by central or local government departments, some positive signs have emerged, with broadcasters allowed more flexibility in their choice of content. Some have even allowed foreign investors to sink money into their advertising divisions. But all programs, foreign or domestic, have to be vetted.

``This can be difficult for many of BBC's news programs, which are known for their hostility towards the Chinese government,'' an analyst of a regional investment bank said.

But for programs other than news Beijing can be more tolerant. After all, who can resist the charm of Teletubbies, the BBC's long-running children's program? The Teletubbies were a smash hit in the mainland when first transmitted on CCTV's youth channel. BBC provides mainly children's and documentary programs to the mainland.

Other media groups, including Rupert Murdoch's News Corp, are also broadcasting in the mainland.

Travel Channel, a local satellite TV channel, has run programs from the StarTV, a subsidiary of News Corp, Wang Hong, the president of the firm, said. In the agreement, StarTV paid Travel Channel in exchange for air time.

Recently, there have been bolder moves to break government restrictions on foreign ownership of the media companies.

In May, Hong Kong-listed Universal acquired from China Poly Group a 50 percent interest in Asia Union Film & Media (AUFM), whose assets include 49 percent of the Travel Channel in China. China Poly Group is a mainland conglomerate which runs businesses from real estates and trading to filmmaking and TV channels. Travel Channel has 90 percent national coverage and ranked about 25-28 among the top five major cities in China.

But the terms are dubious. AUFM has exclusive rights over program production - except news - advertising and revenue for 30 years from August 2003, said a company statement.

Last December, Beijing Youth Daily, the second-ranked newspaper in the capital, separately listed its advertising operation in Hong Kong as Beijing Media Corp. The editorial part of the newspaper remains a state-owned enterprise.

But the analyst is not optimistic about such arrangements. How can you possibly separate the editorial from the advertising department of a newspaper? It doesn't make sense, the analyst said.

sherman.so@singtaonewscorp.com