Those caught in the production and distribution of X-rated adult entertainment online face a variety of punishments including compulsory surveillance and imprisonment. Serious offences such as sites that generate more than 250,000 hits will be regarded as "very severe" and those responsible could face life in prison.
The new rules apply to both non-profit and profit-making ventures that deal in sex, according to official news agency Xinhua.
The new penalties came into effect on Monday (Sept 6).