"In China, the role of the press is as a megaphone for the government and the party," he said.

He said Chinese media now have two masters: The Communist party and the marketplace, growing with new voices and technology.

In response to a student's question, Schell said the Summer Olympics will be a real test for China. An estimated 12,000 foreign journalists are expected to come there and have been promised open access to the country.

Schell said protesters also are planning to use the forum as a stage. He said it could set China's progress back many years if the government tries to stifle the protesters.