China's gag on foreign press

This is almost comical, in the tradition of fuzzy whimsically interpretable laws common in communist China.
Any news that threaten China's (and certainly the CCP's) reputation is grounds for punishment?
Um, since when did "news" by itself ever threaten anybody's territorial integrity?

Are people just totally desensitized to this now, since there is no discussion on this?

http://www.bangkokpost.com/breaking_news/breakingnews.php?id=112845

Brussels (dpa) - The European Commission on Monday criticized the Chinese government's decision to restrict the distribution of news by foreign news agencies in the country.

"China's announcement of these measures...is something that gives the commission real cause for concern," EU commission spokesman Johannes Laitenberger told a regular newsconference in Brussels, calling Beijing's move a "clearly negative development."

The EU had underlined its concerns about the freedom of expression in China at an EU-Asia meeting held Sunday and Monday in Helsinki and will raise the thorny issue again at upcoming human rights talks with Beijing, he said.

China's national news agency Xinhua on Sunday published new rules that give it the sole power to regulate the operations of foreign news agencies - a further restriction of freedom of the media in the world's biggest Communist-ruled nation.

Under the regulations, foreign news agencies are prohibited directly to attract new business in China and can sell their news only through Xinhua or entities authorized by the state-controlled agency.

The new measures, which took effect as soon as they were issued, are aimed at "regulating...in a sound and orderly manner" the news and information that foreign agencies broadcast in China as well as access to it by Chinese subscribers, Xinhua said.

News that "endanger(s) China's national security, reputation and interests" as well as any information that "disrupt(s) China's economic and social order, or undermine(s) China's social stability" are forbidden.

The limitations are to apply even in the former British colony of Hong Kong and the former Portuguese enclave of Macao, Xinhua said.

The censorship law is the latest move in China's broad clampdown on the media and runs counter to official pledges to allow unimpeded foreign media access during the 2008 Olympic Games in the country.

http://www.taipeitimes.com/News/front/archives/2006/09/11/2003327072

The detailed rules ban the distribution in China of news content that disrupts "China's economic and social order or undermines China's social stability," Xinhua said.

The limits also ban news that threatens the country's "national unity, sovereignty and territorial integrity," it said.