Some Opinions Concerning Further Deepening Film Sector Reform

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In order to deepen the implementation of the spirit of the 15th Party Congress, further make flourish and develop our country’s socialist film undertakings, satisfy the daily increasing spiritual and cultural needs of the people, strengthen film sector development vitality and vigour, some opinions on further deepening film sector reform are hereby put forward.

I, Film reform and development situation since the 14th Party Congress

(1) Since the 14th Party Congress, Chinese film, in order to adapt to socialist market economy system requirements, has conducted vigorous and beneficial reform. The distribution model of China Film Company having a monopoly for purchasing and marketing under a planned economy system has been broken, all movie-making work units have obtained self-distribution rights; the appearance of distribution and projection methods such as profit sharing, cinema chains, etc., has stimulated the formation of new profit distribution systems and competition systems; reform experiments such as film and television confluence, the single dragon of movie making, distribution and projection, etc., have promoted industrial structure adjustment and optimization; film-making limits have been further opened up, film distribution and projection work units and television work units have obtained exclusive film export rights; organization of film groups has explored the development path of intensification; a part of film enterprises have reformed their operational setup, deepened personnel allotment system reform; in the countryside, 16mm film trading market establishment and rural film distribution and projection self-help rights development, projection systems coexisting in many kinds of economic sector, have made the rural film market more dynamic every day. Reform has brought our country’s film sector vitality and vigour, film creation levels rise every day, and present a desirable development tendency.

(2) At the same time as fully affirming achievements, it is also necessary to look at the many problems still facing the film industry that urgently need resolution. Film enterprise distribution is scattered, structuring is not reasonable, mechanism operation is lifeless, market competition is lacking; excellent domestic films cannot yet satisfy market and audience requirements; film circulation channels are divided, distribution is divided, there are too many segments, the film market monopolization phase has not yet been fundamentally reformed, it is difficult to shape a market environment with fair competition; film market operation is not standardized, management is weak, film smuggling and piracy has not been curbed despite repeated efforts, the phenomena of tax evasion and false box-office reports, and debts are grave, film distribution funds are lacking, etc. The above problems have gravely restricted film undertaking development, and there must be purposeful enlargement of reform strength, stimulating the continued development of the film undertakings.

II, Reform guiding ideology, principles and objectives

(3) The guiding ideology of deepening film sector reform is: persisting in taking Deng Xiaoping theory as guidance, persisting in the basic Party line policies and principles, abiding inherent film development laws, and also vigorously adapting to the requirements of the socialist market economy and accession to the WTO, earnestly learning from successful experiences in the economic reform area, having the courage to explore, boldly practicing, facing the market, serving the masses, even better giving free reign to the function of excellent products in inspiring people.

(4) The guiding principles of reform are: persisting in the direction of the “Two Serves and policy of the “Two Hundreds”, carrying forward the main melody, advocating diversification, firmly grasp the correct orientation, correctly handle the relationship between social effect and economic effect, guaranteeing that social effect is placed first. Persisting in the control of Party and government, correctly dealing with the relationship between state-owned capital and other social capital, and foreign capital, guaranteeing the dominant role of State-owned economic components. Persisting in giving our country the first place, all for our country, correctly handling the relationship between vigorous import and developing our country’s film, guaranteeing that the socialist nature of our film sector does not change. Persisting in the mutual adaptation of reform strength with the level of completion  of macro management, correctly dealing with the relationship between vigorous initiative and cautious reliability, guaranteeing that reform is conducted in a healthy and orderly manner.

(5) The objectives of reform are: through deepening reform, establishing management systems and operating systems having abundant vitality and mustering zeal from all aspects, issuing more outstanding personnel; establishing a completed film market system, shaping a nationwide unified and open, competitive and orderly film market distribution; shaping a batch of large-scale film groups and modern film enterprises having film and television sector as the beginning, and having competitive power, promoting the development and expansion of our country’s film sector.

III, Main reform steps

(6) Standardizing organization of enterprise groups. It is necessary to take strong film enterprises as the beginning, and through reorganization, optimize resource allocation, transform operational systems, raise film and television production and operation capacity, realizing enterprise economies of scale; it is necessary to further deepen film and television confluence reform, accelerate establishment of film and television recording unification, “one-dragon” film-making, distribution and projection film enterprise groups, shaping principal film industry forces; it is necessary to progressively rationalize internal group property relations on the basis of general enterprise asset checks and demarcation of property, taking capital as the main associating bond, diligently construct mother and son company systems conform to modern enterprise system requirements; it is necessary to complete legal person administration structures, establish management systems guaranteeing Party leadership over film groups. Within the groups, wholly State-owned and State-controlled enterprises’ party committee responsible persons may enter into the board of directors, board of supervisors through the legal procedures, the Party Committee secretary and statutory representative posts may be assumed by one person; leadership ranks’ main responsible persons shall be agreed to by the higher-level controlling entity (work unit) after examination, and appointed and dismissed according to corresponding management powers.

(7) Trying share-holding systems, adjusting property structures. Film-making work unit share-holding system transformation, must be controlled by radio, film and television system State capital, and may attract State-owned capital investment from other systems; single-department film-making may attract non-State capital and foreign capital; distribution work units’ share holding transformation, must be controlled by State-owned capital, and may attract domestic non-State capital investment (except China Film Group Company); projection work units share holding transformation may attract non-State capital and foreign capital investment, but must be controlled by domestic capital, and report to relevant authorities for examination and approval according to procedures.

(8) Vigorously promoting cinema chain systems, stimulating interregional operation. Lowering distribution division, increasing distribution channels. It is necessary to fully use existing distribution and projection resources, establish regional cinema chains and interprovincial cinema chains, encourage film distribution and projection companies meeting conditions to conduct cinema chain transformation, progressively establish film supply systems with the cinema chain in the first position, through competitive and vital film market, stimulate film income to be reasonably allocated between the three segments of production, distribution and projection.

(9) Stimulating operational means diversification, diligently raising the two effects. Encouraging film enterprises in giving film the first place, excavating internal resources, efficiently using available assets, shaping many sorts of operational structures; supporting film-making enterprises to cooperatively run programmes and columns with provincial or provincial capital or higher television stations; on the basis of the existing 35mm film revenue-sharing distribution, and lump sum distribution right methods, add 35mm single film copy sale methods as supplement; encouraging film enterprises meeting conditions to establish national 35mm film tape trading centres under competition, stimulating 35mm film tape trading market to further improve; encouraging conducting domestic film propagation, promotion and trade on the Internet.

(10) Deepening film enterprise internal management mechanism reform, establishing and completing competition systems, incentive mechanisms, control mechanisms. Carrying out personal responsibility systems, labour contract systems and cadre appointment systems, trying out entrusted film producer systems, entrusted agent systems and filming pay contract systems, promoting main creating personnel rewards and economic film effect-related distribution methods., mustering film sector personnel vitality, raising film enterprises’ economic effect.

(11) Adjusting film supply policies, encouraging distribution of domestic films. According to the provision that projection of domestic films by projection work units’ may not be less than two thirds of the total projection time, strengthening yearly domestic film projection assessments, and adjusting imported film supply policies according to the assessment circumstances, in order to encourage film work units to project more domestic films; properly adjusting projection schedules, during important political activities and important holiday periods, in the entire country centralizing and propagating distribution and projection of excellent domestic films.

(12) Depending on technological progress, accelerating the pace of technological transformation. Vigorously importing, developing, applying and spreading high technology, raising technological innovation capacity; diligently promoting digital technology application in film production, strengthening domestic film audiovisual experience and enjoyment, raising domestic film technology content and international competitiveness; accelerating urban cinemas to transform and renovate, improving viewing conditions, raising service quality, accelerating implementation of urban cinema computerized ticketing and computerized networking, raising cinema and distribution and projection sector modernized management levels.

(13) Further opening the rural film market, driving the implementation of the “2131” objectives (referring to the basic implementation of the goal that the peasantry can see one film in one village in one month at the beginning of the 21st century). Continuously implementing subsidy policies, encouraging filming and projecting more good films for the peasantry; encouraging filming even more educational films having applied and popularizing value; county-level film companies must direct all strength to the countryside, serve the peasantry, accelerate conduct of operational system reform, truly become a legal person entity having market competitiveness; supporting rural film distribution and projection achieving many kinds of economic components to coexist as well as operational form diversity, powerfully supporting rural individual film projection teams; further developing and completing 16mm film trading centres, dredging 16mm film copy circulation channels.

(14) Expanding foreign opening and cooperation, vigorously, reasonably and efficiently using foreign capital. Film making work units must fully utilize export rights, further expand film product export. It is necessary to earnestly summarize and complete foreign film import and distribution rules, persist in importing with exporting. It is permitted to import foreign capital to reform film base facilities and technological equipment, it is permitted to reconstruct cinemas with Sino-foreign joint venture and cooperation methods, managerial authority must be controlled by the Chinese side.

IV, strengthening organizational leadership over deepening reform

(15) deepening film reform must strengthen Party leadership, all levels’ Party committees and governments must give regard to film reform and development, include it in their agenda, earnestly investigate, strengthen guidance, complete the whole set, vigorously and reliably promote reform. It is necessary that necessary support is given through policy and finance. All levels’ administrative film controlling entities must go down to the basic units, put forward plans, work soundly, implement all reform duties to reality. It is necessary to stricten the examination and approval system, movie-making work units that try out share-holding system transformation, establish film groups and establish interprovincial projection chains, must report to the SARFT for examination and approval.

(16) According to State laws and regulations, strengthening film management. All administrative film controlling entities must progressively implement the transformation from organizing films to managing films diligently raise administration level according to the law. It is necessary to enlarge management strength over the film market, strengthen macroeconomic regulation over the film market, strictly implement yearly examination over film operation work units, strictly attack unlawful business activities such as film smuggling and piracy, tax evasion, underreporting, create a desirable environment for film development and creation.

Ministry of Culture

















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