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There is no porn industry in China. This is one of the lucrative and profitable markets the Chinese government has chosen to stay out of, because they have some Neo-Confucian ideas that porn is harmful to both socialism and the human psyche.|
If the Chinese were as scientific-minded as they say the are, they would of course consult all the research available, which has found no evidence whatsoever of the claimed dangers of porn. On the contrary; in countries like Denmark and Sweden, where porn was first legalized, sex crime related offenses such as rape diminshed.
So, since porn is not dangerous, this leaves us with a big question mark. On the one hand, China has a huge unemployment rate due to the shift in economic model, and on the other hand we have that China says no to porn on purely Confucian "moral" grounds. The porn industry world-wide is worth some 60 billion dollars, and it is that kind of money the Chinese government says no to. China could in no-time have a domestic (just say no to international interests to protect the internal market) export industry worth 10 billion dollars a year.
You do the calculations in terms of new roads, schools, hospitals, ...
Now, as many have pointed out, the original poster probably meant the sex industry, with prostitution as the main industry. This sex industry has been estimated to cover 10% of the GDP... good luck shutting it down!
But it is remarkable that the more dangerous sex selling industry is tolerated, while there are huge and repeated crack-downs on domestic (not international) porn. It doesn't make sense.
The government should do like Japan, just take the god damn money and use it to improve the country. Let those who can afford to pay for porn help build China.