Report on Development of China's Media Industry (2010) by the Media Economics and Management center of Tsinghua University reveals that the total output of China's media industry grew by 16.3 percent to RMB 490.796 billion in 2009 and is expected to grow 14.5 percent year on year to RMB 562 billion in 2010. The growth engine comes from the new media, for which there is no standard definition yet. In a broad sense, it means digitized traditional media, including value-added electronic publications, digital newspaper and magazine, and touch media extended from print media; digital audio & video broadcast, digital TV & on-board TV. Of course new media also include mobile media like IPTV, cyber video, animation, WAP, mobile TV, SMS, and micro blog &internet. The subversion of China’s media strategy has been triggered by exponential growth of mobile media. China now has 404 m netizens and a 28.9% internet penetration, which for the first time has overtaken the world’s average 22%. About 233 m netizens in the country surge the internet via their mobile phones, a number larger than that of the EU. The market capacity of the internet economy has surged to RMB 74.3 b. 　　

　　Further data show currently 92% of China’s villages and 99.1% of its towns have internet access. In terms of network infrastructure for mobile media, China has completed“overtaking on a bend”in macro communication strategy and the communication platform of interactive information with the international community has taken its shape, which means that the strategic room of the traditional media has been squeezed to a turning point that an institutional package must be carried out. Challenges from new media will indirectly affect the transformation accuracy of strategic layout of the nation’s soft power and directly affect the transformation mode from a vast media country to a strong media country. China has developed 1,943 newspapers, 9,468 periodicals, and 296 TV stations in over 60 years, printing 2,000 b copies of newspapers. In contrast, the number of the websites of new media has risen sharply to 3.23 m in eight years. The output of China’s media industry has doubled since 2004, the biggest contribution coming from new media (mobile media) that account for 31% of the total output. Although merely about one third, given the short period of five years, I believe that no one will doubt about the complete subversion of China’s media industry by the increment of new media-they will likely account for 70% plus. Consequently, the audiences of new media will surpass that of the traditional newspapers, magazines, and radio and TV stations and accurate seamless communication of civil society will prevail. I hope China will present the international community a harmonious, better-off society that is sounder economically and more democratic politically. 　　

　　China’s media strategy cannot wait for innovation largely because of the inertia resulting from long-term superstable nonlinear movement. Nevertheless, owing to the policies on integration of three networks and information industry, especially the presence of multiple regulators, there are signs that the original strategy system is falling apart. Therefore, we should be prescient and preempt 4G beyond 3G while breaking the monopoly of regional media in the new regulatory context. Then we should undermine the information monopoly of the conventional media using new media and reshuffle. These two moves are like keeping alive eyes in the go game. 　　

　　China’s media strategy needs badly a complete change because if we fail to secure a position in the context of global digital communication, we will find ourselves have no say again in technical standards and communication influence alike. Secondly, once the time window for innovation in cloud computing, Smarter Planet, and other technical trends is closed, China’s media industry, especially the new media sector, will be strategically adversely positioned ? how to seek breakthroughs in the regulatory system of a variety of departments without the support of policy resources, increase the increment of derivative contents (products), enhance value addition of brand resources through marginal utility, boost operation performance, generate derivative content using relatively scarce technologies in the intersection of the new and old media are questions the media industry must answer. But the value chain is rather fragile. Without revolutionizing the existing media strategy, the new media will become a one-trick pony.