China wants stake in internet companies

The Chinese government’s control over the Internet could get even tighter, with regulators floating a proposal for the state to take 1% stakes in major Chinese Internet companies. The Wall Street Journal reports that under the proposal the government also would take a board seat at companies where it buys such “special management shares,” the people say, giving it more direct influence over company policies on content and censorship. Companies that could be affected include Tencent Holdings Ltd., Baidu Inc., NetEase Inc. and almost all big online media companies. However, the proposal is vague and may not materialize, the people familiar with the matter say.