While Chinese companies are exploring opportunities outside the country, foreign firms just cannot slow their steps in business expansion inside China, the biggest market for almost every business worldwide. U.S media powerhouse Viacom is one of them.

The conglomerate is to set up a joint venture with Shanghai Media Group to produce children's TV programming in China. This will be the first time foreign investment flows directly into the state-monopolized entertainment sector, CRI reported Tuesday.

Last year, the company was allowed to beam its top branded MTV music channel into certain cities in south China's Guangdong Province, while less than a year later, it has continued to take another step forward.

Joining hands with Shanghai Media Group, the country's second largest media group following state broadcaster China Central Television, the alliance will focus on making educational and animated children's programs, which will be piped into the 8 million households covered by SMG's cable TV network. Viacom will also be in charge of promoting the TV products through its overseas Nickelodeon channel.

The marriage is the result of an open courtship, their teaming up comes as no surprise. Viacom has been acting as a key middleman in introducing China Central Television's English channel in the US, while SMG has just inked a pact with Vivendi-Universal, to set up an entertainment joint venture.

Although it's still unclear who will be on the board of management and the details of the shareholding system remain undisclosed, the move is seen as breaking the ice since China loosened its grip on foreign investment in TV programming last year. It allows foreign companies to buy a minority stakes in film studios, and operate in TV production.

Commercial sales for Viacom's China business rose more than 20 percent last year, giving it every reason to march from the coastal regions around Guangdong into the hinterland. Negotiations for another joint-venture with Beijing Television are reportedly underway, and a deal with China Central Television will soon put its 90 minutes Nickelodeon shows on the air through CCTV's children's channel.