VZCZCXRO1756
RR RUEHCN RUEHGH
DE RUEHGZ #0260/01 1190915
ZNR UUUUU ZZH
R 290915Z APR 09
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 0437
INFO RUEHGZ/CHINA POSTS COLLECTIVE 0159
RUEHBJ/AMEMBASSY BEIJING 0301
RUEHCN/AMCONSUL CHENGDU 0095
RUEHHK/AMCONSUL HONG KONG 0135
RUEHGH/AMCONSUL SHANGHAI 0098
RUEHSH/AMCONSUL SHENYANG 0095
RUEHIN/AIT TAIPEI 0075
RUEAIIA/CIA WASHDC 0142
RUEKJCS/DIA WASHDC 0138

UNCLAS SECTION 01 OF 03 GUANGZHOU 000260 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/TC, EAP/CM 
 
E.O. 12958: N/A 
TAGS: SCUL SOCI PHUM PGOV ECON HK TW CH
SUBJECT: Phoenix TV in the Mainland - Self Censorship or Just 
Catering to Local Tastes? 
 
Ref: OSC Media Aid Report - CPF20060302509001 
 
(U) This document is sensitive but unclassified.  Please protect 
accordingly.  Not for release outside U.S. government channels.  Not 
for internet publication. 
 
¶1. (SBU) Summary: So how's Phoenix TV doing in China?  How much has 
it expanded its coverage in China over the last fifteen years?  Is 
it on its way to becoming the Chinese-language CNN (or FOX)?  How 
much independence can it realistically aspire to?  Of course, it all 
depends whom you talk with about Phoenix's present and future 
future.  Editorial staff from Hong Kong-based Phoenix told us that 
the network now delivers news and entertainment to an audience of 
150 million on the mainland.  One employee who spoke with us 
privately said that the network censors itself to expand and 
preserve access to the mainland market, while another, perhaps a bit 
disingenuously in terms of explaining how the company may "tinker" a 
bit with the news, said that the company merely edits its coverage 
to satisfy the sensibilities of its audience.  Despite Phoenix's 
efforts to claim non-mainland identity and non-mainland direction, 
there is much to question about its independence and whether it has 
had an impact on news media in China.  End Summary. 
 
Penetrating the China Market 
---------------------------- 
 
¶2. (SBU) Phoenix TV currently reaches approximately 150 million 
viewers in mainland China, according to information provided by the 
network.  Helen Gai (Gai Huixia), deputy director of Phoenix's 
General Editorial Department, explained that their mainland viewers 
were mainly well-educated middle class along with elite government 
officials.  A survey by an outside firm cited in Phoenix's 
promotional materials claimed that 28% of Phoenix's mainland viewers 
had a college education or post-graduate education, compared to 
13.6% of viewers surveyed overall.  In addition, 47% of the 
households tuning into Phoenix InfoNews earned over 3,000 RMB 
monthly, compared to 40% overall.  Gai also told us that the network 
reaches some of the country's most senior leaders, claiming that 
Phoenix TV is specially installed in hotel rooms for certain leaders 
when they travel overseas. 
 
¶3. (SBU) However, Phoenix's mainland distribution is still 
restricted by its "landing rights," which were negotiated with the 
mainland authorities.  As reported in the Open Source Center Media 
Aid report on Phoenix (ref), the network's landing rights are 
currently limited to Guangdong Province.  Hotels rated three stars 
and higher can also receive satellite programs from approved foreign 
media such as Phoenix.  Offices and residential buildings catering 
to expatriates can receive such broadcasts.  In addition, many 
viewers in the mainland receive Phoenix TV broadcasts with illegal 
satellite dishes.  (Note: the OSC report is available on ConGen 
Guangzhou's blog - at 
www.intelink.gov/communities/state/southchina sez/.  End note.) 
 
Self Censorship and Satisfying the Authorities 
--------------------------------------------- - 
 
¶4. (SBU) Another employee from Phoenix's editorial staff who spoke 
with us separately explained that although Phoenix promotes itself 
as an independent media source, its internal editorial guidance 
restricts reporting on sensitive international issues for China.  He 
said Phoenix journalists are expected to be very careful in their 
reporting on Taiwan and new journalists are given special training 
on how to report on cross-straits issues.  Junior editors need to 
clear stories with senior editors who sometimes need another level 
of clearance.  He told us Phoenix's reports cannot refer to Ma 
Ying-jeou as "president" and reports must always refer to mainland 
China and Taiwan, never just China and Taiwan.  Similarly, when 
reporting on the Falun Gong, Phoenix reporters are not allowed to 
show the Falun Gong logo. 
 
¶5. (SBU) For a recent example of this kind of self-censorship, the 
employee pointed to protests last year in France that disrupted the 
Olympic Torch's relay and counter protests in China targeting 
Carrefour stores.  He said some Phoenix reporters felt this was 
newsworthy and deserved ongoing coverage.  But senior editors, who 
were concerned that repeatedly broadcasting certain images "would 
enrage young people" and possibly lead to instability, decided to 
restrict overage. 
 
 
GUANGZHOU 00000260  002 OF 003 
 
 
¶6.  (SBU) The employee also said that because Phoenix is seeking 
permission to expand its landing rights to new provinces, it 
self-censors critical reports on local officials.  He said officials 
offended by reports contact Phoenix executives, who in turn send 
internal notes telling Phoenix staff to pull the story and not run 
it again. 
 
¶7. (SBU) Phoenix's efforts to self-censor are sometimes made more 
challenging because, unlike state media, Phoenix does not get 
explicit government guidance beforehand on how to run a story, 
according to the editorial employee.  He indicated that Phoenix 
editors make their own assessments based on their perceptions of 
mainland sensibilities (and perhaps a bit of nudging from irate or 
disaffected local officials).  In addition, if Phoenix goes too far, 
it risks its existing access to the mainland market. 
 
¶8. (SBU) However, there are those at Phoenix who claim a greater 
degree of editorial and news coverage autonomy.  Helen Gai and her 
boss, General Editorial Department Director Pan Hongxing, rejected 
the notion that Phoenix is under pressure to self-censor and proudly 
described its editorial decision making as independent.  (Comment: 
Gai and Pan spoke with us openly as representative of Phoenix TV, 
which likely explains their different take on the network's 
editorial philosophy.  End comment.)  They cited Phoenix's recent 
decision to broadcast the entirety of President Obama's inaugural 
address as an example.  When asked why programming on cross-Strait 
issues adhered so closely to Beijing's line, Pan replied that 
Phoenix's content represents the values system of Chinese worldwide, 
noting that most Chinese globally want Taiwan unification with the 
mainland.  He pointed out that Phoenix had reported a Taiwan 
perspective before, including broadcasts of former Taiwan leader 
Chen Shui-bian delivering speeches.  He also indicated that 
reporting Bejing's line on Taiwan reunification makes good business 
sense - especially if, like Phoenix, you're trying to consolidate 
viewership on the mainland in competition with CCTV. 
 
Accentuating a Non-Mainland Identity 
------------------------------------ 
 
¶9. (SBU) Despite the fact that the vast majority of its audience is 
mainland-based, Phoenix seems to emphasize its non-mainland identity 
in its choice of anchors and the language used in reporting.  Gai 
pointed out that Phoenix is the only news broadcaster that has 
mainland, Hong Kong and Taiwan staff working together.  Most of 
Phoenix's InfoNews anchors are from Taiwan.  The editorial employee, 
who spoke with us separately, pointed out that Phoenix often uses 
employees from Taiwan for voiceovers as well.  He also said that 
Phoenix reporters cannot use certain mainland vocabulary and instead 
try to use language that resonates more with Hong Kong and Taiwan 
audiences.  In addition, the network uses traditional Chinese 
characters instead of simplified versions used in the mainland. 
 
¶10. (SBU) However, the employee commented, despite all this, Phoenix 
InfoNews is not taken seriously among Hong Kong residents, some of 
whom see Phoenix as a mainland mouthpiece and jokingly refer to it 
as a version of CCTV for Hong Kongers.  Phoenix's impartiality meets 
similar skepticism when its news crews have gone to Taiwan to 
report.  The employee said they had met with protests by supporters 
of the independence-leaning Democratic People's Party. 
 
¶11. (SBU) Even though it devotes considerable airtime and resources 
to cross-strait affairs, Phoenix is currently not available in 
Taiwan.  Gai explained that the Chen Shui-bian administration 
blocked Phoenix from broadcasting to Taiwan, but with the new Ma 
administration and improved cross-strait ties, Phoenix was again 
seeking permission to broadcast to Taiwan.  Its application has not 
yet been approved.  Gai suspects that Taiwan broadcaster TVBS had 
blocked the application to freeze out a possible new rival. 
 
¶12. (SBU) Pan commented that Phoenix is a manifestation of "Chinese" 
(huaren) soft power - but not necessarily China's soft power. 
According to Pan, Phoenix stresses Chinese language and cultural 
pride.  He feels that Phoenix is popular on the mainland and 
welcomed by the social elites because it pursues this mission. 
 
Looking Ahead - the Chinese-Language CNN? 
----------------------------------------- 
 
¶13. (SBU) Gai and Pan explained that Phoenix has ambitions to occupy 
a bigger role in the Chinese-speaking media world and become the 
 
GUANGZHOU 00000260  003 OF 003 
 
 
"Chinese-language CNN" in the next five-to-ten years.  They claimed 
that Phoenix had in the recent past developed a brand associated 
with "a right to know" (zhiqing quan) and "seeking truth from fact" 
(shishi qiushi).  They asserted that Phoenix's coverage during the 
9/11 attacks and the war in Iraq, with much more extensive coverage 
than mainland media, solidified this identity in the minds of their 
viewers.    Some viewers are willing to rent hotel rooms just to be 
able to watch Phoenix's coverage of certain stories, according to 
Gai.  She said viewers had told her that Phoenix was their 
"spiritual nourishment."  Gai and Pan argued that U.S. officials had 
identified Phoenix as an effective tool for reaching 
Chinese-speaking audiences, citing former Secretary Powell's 
exclusive interview with Phoenix during a visit to Beijing to state 
that America did not support Taiwan independence. 
 
¶14. (SBU) Pan and Gai claim that Phoenix has already had a strong 
impact on mainland media and journalism.  With its 16 bureaus 
world-wide, Phoenix has extended the amount and variety of 
international news coverage for Chinese viewers, they said.  In 
addition, Pan and Gai feel that Phoenix has contributed to the 
"marketization" of Chinese media, pointing out that all media 
enterprises-including CCTV-now need to focus on the bottom line. 
Phoenix claims to get 90% of its revenues from advertising and they 
feel they have been successful at developing interesting programming 
and a loyal audience.  Phoenix believes its success in competing in 
the marketplace has inspired imitators and rivals such as Hunan TV 
and Hainan TV, mainland broadcasters that are provincial in origin 
but have expanded their reach beyond their immediate region in China 
to garner a wider following.  (Comment:  Notwithstanding Pan and 
Gai's claims, there are other factors that likely played a more 
critical role in the marketization of Chinese media, not least of 
all Party and central government policy decisions to pursue such a 
model. End comment.) 
 
¶15. (SBU) Pan and Gai expressed concern about future competition 
from the mainland media outlets, especially a CCTV "Chinese CNN." 
The editorial employee argued that regional imitators on the 
mainland would also be a threat, citing Shanghai's DongFang WeiShi 
as well as broadcasters in Macau and Shenzhen.  Pan and Gai were 
confident that Phoenix could play to its unique position to stay 
ahead.  The editorial employee, however, was more pessimistic, 
saying that since big events like 9/11 and the war in Iraq, Phoenix 
seemed to have become more conservative, less willing to do more 
independent reporting and risk ad revenues.  Though Phoenix wants to 
raise its profile overseas, he wondered how Phoenix would look when 
seen to be self-censoring on sensitive international issues. 
 
¶16.  (SBU) Comment: Despite Gai and Pan's comments, we lean toward 
the views of the editorial employee who spoke with us privately. 
Phoenix's success in China is likely due largely to the "windmill" 
or weatherman effect - it knows which way the wind is blowing on an 
issue and it can adjust the mill's spin accordingly. 
Self-censorship is the prudent way out.  And self-censorship really 
is the only way to expand landing rights.  End comment. 
 
GOLDBERG