Ruling seen as free-speech landmark

BEIJING (AP) — A Chinese court has cleared a magazine of libel charges filed by a state-owned real estate developer in what is seen as a landmark ruling for freedom of speech.

All Chinese media are state controlled and expected to sing the praises of the government and play down bad news. The constitution enshrines freedom of speech, but defendants rarely win libel lawsuits.

The People’s Intermediate Court in Tianhe district in the southern city of Guangzhou ruled on Oct. 12 against Guangzhou Huaqiao Real Estate Development Co., which had sought $711,000 in damages from China Reform magazine.

The July 1, 2003, edition of the monthly said Guangzhou Huaqiao had been stripped of its assets, posted losses and laid off workers as a result of its ownership changing hands several times. The news was sourced to company and official documents.

The court ruled that journalists enjoyed legal immunity if news was backed up by a source that was reasonable and believable, and not based on rumors or fabrication, according to a copy of the verdict.

“Room for freedom of speech has been expanded,” libel lawyer Pu Zhiqiang said.

“In the past, if you say I’m no good and I’m unhappy, I can sue you,” Mr. Pu said. “The ruling, at the very least, does not consider a fair commentary to be infringement.”

An employee of Guangzhou Huaqiao said the firm had not received a copy of the verdict and declined further comment. It has 15 days to appeal.

The magazine welcomed the verdict.

“This is an inspiring milestone,” said 33-year-old reporter and editor Liu Ping, whose story was headlined “Who is Splitting the Fat?”

“It’s not only good news for the media, but also big happy news for the judiciary and the academic world,” she said. “We are gratified the judiciary gave a certain degree of space and affirmation to the media playing a supervisory role.”

Guangzhou Huaqiao said in its complaint that the magazine had “dealt a heavy blow to a large-scale state-owned enterprise with hopes of soaring, and caused huge economic losses.”

Millions of workers have been laid off from loss-making state enterprises as China moves from a planned to market economy.