BEIJING, June 25 — Many big companies have sought to break into the Chinese market over the past two decades, but few of them have been as ardent and unrelenting as Murdoch's News Corporation.
Mr. Murdoch has flattered Communist Party leaders and done business with their children. His Fox News network helped China's leading state broadcaster develop a news Web site. He joined hands with the Communist Youth League, a power base in the ruling party, in a risky television venture, his China managers and advisers say.But as he seeks to buy the parent company of The Wall Street Journal, his track record in China has attracted attention less because of profits and losses than for what it shows about his management style.
Mr. Murdoch cooperates closely with China's censors and state broadcasters, several people who worked for him in China say. He cultivates political ties that he hopes will insulate his business ventures from regulatory interference, these people say.
In speeches and interviews, Mr. Murdoch often supports the policies of Chinese leaders and attacks their critics. A group of China-based reporters for The Journal accused him in a letter to Dow Jones shareholders of "sacrificing journalistic integrity to satisfy personal and political aims," a charge the News Corporation denies.
His courtship has made him the Chinese leadership's favourite foreign media baron. He has dined with former President Jiang Zemin in the Zhongnanhai leadership compound in Beijing and repeatedly met other members of the ruling Politburo in Beijing, New York and London. Television channels affiliated with Mr. Murdoch beam more programming into China than any other foreign media group.
Mr. Murdoch's initial foray into China was disastrous. Shortly after he purchased the satellite broadcaster Star TV in Hong Kong for nearly $1 billion in 1993, he made a speech in London that enraged the Chinese leadership.
He said that modern communications technology had "proved an unambiguous threat to totalitarian regimes everywhere." Star could beam programming to every corner of China, and Murdoch had paid a big premium for the broadcaster for that reason. He then spent the next four years kissing communist asses until they forgave him. Star TV overhauled its programming to suit Chinese tastes. In 1994 it dropped BBC News, which had frequently angered Chinese officials with its real news on mainland affairs.
But he said he had pressed the British broadcaster to stop showing a video of a man facing down a tank outside Tiananmen Square — an indelible image from China's crackdown on pro-democracy protesters in 1989 — during its on-air programming breaks. He said the BBC refused, calling the video a "journalistic presentation."
If Star was a potential threat to the one-party state, it was also a new opportunity. Chinese officials disliked Western news media coverage of China and wanted to present their own face to the world. Mr. Murdoch provided the access they wanted.
In 1996, he entered a joint venture with Liu Changle, a onetime radio host for the People's Liberation Army who had connections with propaganda officials. Their joint news and entertainment channel, called Phoenix, beamed programs to the small number of urban households permitted to see foreign broadcasts in China. Mr. Murdoch transmitted the same programming around the world on his satellites.
Phoenix imitated the fast pace and on-the-scene reporting style popular in the West and shook up the mainland's staid news media, which still featured well-coiffed narrators reading scripts about meetings between senior leaders held that day. But Phoenix also tended to steer clear of the most sensitive political topics and could be bombastically nationalistic.In late 1998, President Jiang invited Mr. Murdoch to Zhongnanhai. The official Xinhua news agency, reporting on the session, made clear that the media baron had a new reputation.
The Murdochs often echoed the Chinese government line. In a 1999 interview with Vanity Fair, Mr. Murdoch spoke disparagingly of the Dalai Lama, whom the Chinese condemn as a separatist. "I have heard cynics who say he is a very political old monk shuffling around in Gucci shoes," he said.
James Murdoch, who ran Star TV from 2000 to 2003, said in a speech in Los Angeles in 2001 that Western reporters in China supported "destabilizing forces" that are "very, very dangerous for the Chinese government." He lashed out at the Falun Gong spiritual sect, which had just endured brutal repression in China, calling it "dangerous and apocalyptic."
The Journal won a Pulitzer Prize for its coverage of the suppression of the Falun Gong movement in 2001. Last month, seven China-based reporters for The Journal wrote a letter to Dow Jones's current controlling shareholders arguing that the articles on Falun Gong "may never have seen the light of day" if The Journal had been owned by Mr. Murdoch.The Murdochs invested about $150 million in half a dozen start-up Internet and telecom companies at the height of the Internet bubble between 1999 and 2001. Only one, Netcom, returned an appreciable investment profit, two former News Corporation executives said.As a local venture, MySpace China, which began operations in the spring, abides by domestic censorship laws and the "self discipline" regime that governs proprietors of Chinese Web sites. Every page on the site has a link allowing users or monitors to "report inappropriate information" to the authorities. Microsoft, Google and Yahoo have made similar accommodations for their Web sites in China.
The Murdochs will soon be able to call Beijing home. Workers have nearly finished renovating their traditional courtyard-style house in Beijing's exclusive Beichizi district, a block from the Forbidden City. Beneath the steep-pitched roofs and wooden eaves of freshly coated vermillion and gold, the courtyard has an underground swimming pool and billiard room, according to people who have seen the design.
