EU's Barroso - China media curbs are trade issue

BRUSSELS, Sep 30 (Reuters) China's new restrictions on foreign media raise concerns about its respect for trade rules as well as human rights and freedom of expression, European Commission President Jose Manuel Barroso said.

Opening a Reuters photo exhibition at European Commission headquarters yesterday evening, Mr Barroso said European Union Trade Commissioner Peter Mandelson had contacted the Chinese authorities to complain about the measures.

''The Commission has already expressed its concerns over the repercussion these measures are likely to have in terms of trade, foreign operations in China and respect for human rights and fundamental freedoms,'' Mr Barroso said in a speech.

''We will continue to do our utmost to defend open markets and freedom of expression,'' he said.

The new rules, announced this month, bar foreign companies such as Reuters and Bloomberg LP from selling news and information directly to clients in China.

''Let us not beat about the bush -- these measures are likely to have an extremely severe impact on foreign news agencies in China, and on Reuters in particular,'' Mr Barroso said.

Chinese leaders have sought to play down the impact of the measures, announced by the official news agency Xinhua, which also acts as regulator of the foreign media.

The new rules require foreign media to seek Xinhua's approval to distribute news, pictures and graphics, and the agency has said it could censor reports distributed by foreign media and delete forbidden content.

However, Prime Minister Wen Jiabao said on a visit to London that China's open policy towards foreign media and financial information agencies remained unchanged and the government would protect their freedom and rights.

And a senior Chinese diplomat said this week the rules were not motivated by ideology or politics.

''This has nothing to do with ideological or political considerations. It's merely on the economic consideration'' and to bring order to the market, said Xie Xiaoyan, deputy commissioner of the Chinese Foreign Ministry's office in Hong Kong.

International rights groups have denounced the rules as an attack on media freedom in China, where the ruling Communist Party is trying to keep a tight grip on information.

Reuters SHB VV1522