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More damaging still is a requirement that firms distributing online video or audio be state-owned. If enforced to the letter, the law could kill the most vibrant media in China today. "We are still alive and well and in business as of today, but we don’t.

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Although some cynics have questioned YouTube’s staying power, Google is betting that the popular video-sharing site will provide it an increasingly. more media companies will be lining up to do business with YouTube now that Google owns it.

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While most videos posted on YouTube are homemade, the site also features volumes of copyrighted material a problem that has caused some critics to predict the startup eventually would be sued into oblivion, much like the once-popular music-sharing site.

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