TAIPEI (Taiwan News) — Following reports that even China’s state-owned CCTV group was planning to launch over-the-top (OTT) streaming services in Taiwan, the government said Thursday (April 23) it would not sit back and allow Chinese media groups to exploit loopholes.

Media organizations from China are banned from setting up Taiwan-based services, but companies like Tencent Holdings Ltd. and iQiyi have formed alliances with local broadcasters and distributors to promote and sell their video streaming services on the island.

Cabinet spokeswoman Kolas Yotaka said that allowing the Chinese OTT services to function on the edge of the law amounted to a “breach of democracy,” CNA reported. A proposal for an “Online Audio and Video Services Act” would be unveiled by the end of July to address the loopholes, according to the National Communications Commission (NCC).

The Ministry of Culture, the Mainland Affairs Council and the NCC would share supervision over the domain, which includes live streaming and broadcasting of Chinese movie and television products.