Currently, all television is controlled by the government in China. This equates to only programs that are government approved. This would not be so problematic if China did not have so many restrictions on what kind of information may be disseminated. Even the US has limitations on public television, but not nearly to the extent of China. China could maintain control of the media, just loosen the grip some. A better alternative is to just regulate privatized media. Its more profitable for both the stations and the government.
Yes, both Chinese television and CCTV News should be privatized because of what they are and what advantages a private company has over a public, or government run program. The first major reason would be that as a private company, the television and shows will play what they feel is appropriate to and will benefit the companies growth. By being a publicly run company or government run televisions, a company has to make decisions based on what will benefit the stock holders, or be bias towards the government. News should be accurate and not made strongly bias based off who runs the television and news.
Just like with any other privatization of companies, this privatization will provide the company with the freedom to broadcast shows and news reports that the company thinks are news worthy. A public news company tends to broadcast all aspects of the news and not what they think are beneficial to them. Privatization will limit the available news as well as prevent it from being impartial.
If the Chinese want to have their own network and private TV than I see nothing wrong with it. If they do not want it to be private, that is great too. I think allowing other nations to view your programs is a good thing though because it helps us understand their culture.
Chinese news is the state news and state is in control of the media. The Chinese government is not a great runner of many of these services but they are still the ones who own it and people can't simply decide to make them private on a whim right now.