Two years ago there was a government order issued to regulate internet video and audio service providers in China. The order required that, starting from Jan. 31, 2008, every website providing video and audio services needed to obtain a permit from SARFT.
One of the conditions for obtaining a permit was that the internet service is either fully or partially owned by the ruling Chinese Communist Party (CCP).
The CCP revealed plans to invest hundreds of millions of dollars in building the website as an international, multi-language internet multimedia site, providing comprehensive video broadcasting and sharing services. Which would not encourage competition from YouTube.