China's crackdown on online rumours has been successful, the country's internet regulator said on Thursday. Buoyed by this progress, local authorities are now mulling to regulate Chinese Internet even more.

"The fight against rumours has received a positive response and has been quite effective," Ren Xianliang, vice minister of the State Internet Information Office, said during a rare question-and-answer session on Thursday.

"The Internet has become clean. The frequency of slander has declined, but it has not impacted the orderly flow of information."

China's Internet populace is now placed at a whopping 604 million users, where half are either on microblogging sites such as Sina Weibo or using the mobile messaging app WeChat. Netizens angered by malpractices at China such as corruption take to the internet to express their disgust. In retaliation, China has blocked Web sites such as Facebook, YouTube, and Twitter in order to filter and regulate content roaming around the Internet. Those who cannot comply are altogether banned operating their services in China, while domestic Internet firms must self-censor and are ordered to delete user comments on sensitive topics.

"We of course welcome Facebook-like sites to come to China, but they must follow the relevant laws," Mr Ren said.

Just two months ago, China effected new rules for its netizens' use of the internet. Online rumour mongers and those who post libelous comments will now be slapped with defamation charges and would face jail imprisonment of three years maximum time.

"Our hope is to figure out how make the proper laws, and the proper regulation. It's not to regulate the Internet to death," Mr Ren said.

"Our intention is to not control, but to help the Internet develop better."

Netizens blasted such rules as damaging free speech.

"I think people want to hear constructive comments, not personal attacks or a diatribe," he said, noting free speech for Internet users must have limits.