China will license no new internet cafes this year while regulators carry out an industry-wide inspection, the government says, amid official concern that online material is harming young people.

Investigators will look into whether internet cafes are improperly renting out their licences or failing to register their customers' identities, the State Administration for Industry and Commerce said on its web site.

"Industry and commerce bureaus at all levels must not licence any new internet cafes in 2007," said the notice, dated May 30.

Read more here (TheAge)