A press freedom group has news of a Chinese financial publication that's temporarily been shut down. And it has an update on Propaganda Department orders sent to Chinese journalists covering the milk scandal.

Reporters Without Borders says the Propaganda Department has strengthened its control over the information available in the media and online about the tainted milk powder scandal.

They say:

" … Several Chinese journalists have said that it is becoming more and more obvious that the authorities in July prevented an investigation into the toxic milk coming out so as not to tarnish China’s image before the Olympics …

" …A Propaganda Department circular of 12 September warned that it was in the interests of media and websites to limit publication of articles or commentary on the milk products scandal …"

Licence suspended

Meanwhile, the China Business Post, which sells 400,000 copies each week, has just had its licence suspended for three months, says Reporters Without Borders.

The apparently widely read publication is accused of having broken the law in an article on the Agricultural Bank of China, it says.

" …According to the authorities, the Beijing-based weekly violated a regulation that bans the media from publishing an investigation into an event in a province other than that in which it is licensed. The authorities also considered that the China Business Post should have questioned the Agricultural Bank of China before carrying the article. Officials in Inner Mongolia justified their decision by citing other investigations by the financial paper which reportedly violated the same rules …"

Party censorship

High profile Chinese media investor Bruno Wu insisted that authorities revoke the suspension, reports The Financial Times.

He called the decision an "abuse of power". The Times goes on to say:

" …The action against the business weekly highlights the risks run by Chinese news media operations that challenge powerful state interests in a market still dominated by Communist party censorship and tight government regulation …"