Jan. 3 (Bloomberg) -- China, which outlaws criticism of the state, will ban Web sites that aren't run by the government from broadcasting video or radio over the Internet.

Starting Jan. 31, applicants for Internet broadcasting licenses must be government-run entities, China's State Administration of Radio, Film and Television said in a Dec. 29 statement. Web sites won't be able to offer material that promotes sex, violence, gambling, religious cults or reveals state secrets.

China, the world's second-largest Internet market by users, already blocks Web sites for organizations such as Amnesty International, and prohibits online advertising for drugs to treat sexually transmitted diseases. Google Inc., owner of the world's most popular search engine, excludes links to anti- government sites on its pages in China.

``Internet video and audio providers must be resolute in the service of the socialist ideal and of the people,'' the government said. The agency will supervise Web video and radio services, which will need to renew their licenses every three years.

China had 162 million Internet users at the end of June, making it the second-largest market behind the U.S., according to government data.

YouTube Clips

Google, which bought video site YouTube for $1.65 billion in 2006, is studying the rules, according to an e-mailed statement from the company. YouTube is the most-popular video site in the U.S., with 2.5 billion clips being watched in September, according to Reston, Virginia-based researcher ComScore Inc.

``China's new regulations for online video could be a cause for concern,'' Google said. ``YouTube reaches a global audience and strives to provide a community where people from around the world can express themselves by sharing videos in a safe and lawful manner.''

Google, based in Mountain View, California, rose 14 cents to $685.33 at 4 p.m. New York time on the Nasdaq Stock Market. The shares surged 50 percent last year.

To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net

Last Updated: January 3, 2008 16:09 EST