Actually Relic, even though you were joking there is some truth to that; in the sense that the people running this place are evil. Of course this isn't the only country run by arseholes; can't think of many that aren't.
If you were to look a little more into you'd probably find some even crazier shit. I might be making this up but from what I understand, they block certain sites and stuff for the whole population so their culture is not exposed to certain things like American propaganda. The whole contry has a firewall or something like that.
I think even major movie releases here in the US have to jump through hoops to get released out there.
That's true to a certain extent, there is a firewall blocking a lot of internet sites but it's not quite as restrictive as that, we still get more than enough American propaganda if we want to look for it. Sites that are blocked are more along the lines of things that are critical of the Chinese government. Also all web connections are monitored by the government; the police have a whole department dedicated to this. I think I mentioned elsewhere that our computers at my last job were individually monitored because the police had logged someone accessing the Falun Gong website from the school so they tightened their surveillance. (Interesting that the Falun Gong site was not blocked)
Also most of the sites blocked are Chinese language ones not as much in English although there are still quite a few. A lot of porn is blocked. But there is a way around it. If a site I want to access is blocked I just use my proxy server to get around it and the pigs are none the wiser, (as long as they don't read this).
As for movies that's only for cinema release, most people watch DVDs and you can pretty much buy any current release on DVD for about $1 USD, (pirate of course, but the pigs are paid off and the government doesn't really care that much; as long as they are seen to be doing something about it sometimes to save face. In reality the biggest pirate DVD and CD pressing plants are owned by the Army in partnership with the triads). The DVD shops here make a show of hiding their collections behind false walls so if anyone asks awkward questions the police can say they looked but didn't see the false wall.
Sorry for going a bit off topic but I think it's still relevant to give some context to the discussion.