State Administration of Radio, Film and Television, Ministry of Foreign Trade and Economic Cooperation, Ministry of Culture Decree
The “Provisional Foreign Businesses Investing in Cinema Regulations” are hereby promulgated, and take effect on the day of promulgation.
State Administration of Radio, Film and Television Director: Xu Guangchun
Ministry of Foreign Trade and Economic Cooperation Minister: Shi Guangsheng
Ministry of Culture Minister: Sun Jiazheng
25 October 2000
Article 1: In order to adapt to the needs of reform and opening up, attract foreign capital, attract advanced technology and equipment, make the film sector of our country prosper, according to laws and regulations such as the “Sino-foreign Equity Joint Venture Enterprise Law of the People’s Republic of China”, the “Sino-foreign Contractual Joint Venture Enterprise Law of the People’s Republic of China”, the “Film Management Regulations” etc., these Regulations are formulated.
Article 2: These regulations apply to establishment of Sino-foreign joint equity, or contractual enterprises (hereafter simply named foreign-invested cinemas) to construct or reform cinemas, and engage in film projection work, by foreign companies, enterprises and other economic groups or individuals (hereafter simply named foreign parties) according to the principle of equality and mutual benefit, approved by the Chinese government, within Chinese territory in cooperation with Chinese companies or enterprises (hereafter simply named Chinese parties).
Article 3: It is not permitted to establish exclusively foreign-invested cinemas.
Article 4: Foreign-invested cinemas shall conform to the following conditions:
(1) conforming to the local cultural facilities’ deployment and planning;
(2) a registered capital of no less than 1,000,000 Yuan;
(3) having fixed business (projection) premises;
(4) Sino-foreign joint equity and contractual joint venture cinemas may not be labelled with the name of foreign film and television (media) or cinema chains;
(5) In Sino-foreign joint equity cinemas, the cooperating Chinese party proportion of the registered capital may not be lower than 51%; in Sino-foreign contractual joint venture cinemas, the cooperating Chinese party shall possess the business initiative;
(6) The duration of joint equity and contractual joint ventures may not exceed 30 years;
(7) conforming to relevant Chinese laws, regulations and related provisions.
Article 5: Where the cooperating Chinese partner participates in the investment with State property (except for cash investment), it shall accord to relevant provisions on State-owned capital evaluation management, evaluation shall be carried out on the State-owned property put in, and it shall undergo confirmation by the provincial-level or higher State-owned property management entity.
Article 6: Foreign-invested cinema establishment approval procedure:
1, a foreign-invested cinema establishment project application letter;
2, the cooperating Chinese partner’s legal person qualification certification materials, materials relevant to film theatre land usage rights, bank creditworthiness certification;
3, the cooperation foreign partner’s qualification certification materials, bank creditworthiness certification, financial situation certification materials provided by a certified accountant agency;
4, a foreign-invested cinema name examination and approval notification letter issued by the administrative industry and commerce entities;
5, a feasibility study report, contract, articles of association;
6, other materials required by laws, regulations and the examining and approving organ to be furnished.
(2) After the provincial-level foreign trade management entity of that locality has sought approval from the provincial-level administrative film management entity, the examination and verification agreement opinions are reported to the State Ministry of Foreign Trade and Economic Cooperation. After the Ministry of Foreign Trade and Economic Cooperation has sought opinions from the State Administration of Radio, Film and Television and the Ministry of Culture, according to State regulations and laws relating to foreign investment, it conducts examination and approval, and towards foreign-invested enterprises approved for establishment, a “Foreign-invested Enterprise Approval Certificate” shall be issued.
(3) Foreign-invested cinemas having obtained approval for establishments, shall within one month of issue of the “Foreign-invested Enterprise Approval Certificate” issued by the Ministry of Foreign Trade and Economic Cooperation, conduct registration formalities with the State administrative industry and commerce entity.
(4) After completion of the foreign-invested cinema construction or reform work, and passed as qualified by the relevant entities, with the “Foreign-Invested Enterprise Approval Certificate” and the “Business Licence”, apply for a (Film Projection Business Permit” with the provincial-level People’s Government administrative film entity, and may only then engage in film projection work.
Article 7: When already established foreign-invested cinemas change shareholding and investment value, a procedure shall be conducted according to the provisions of Article 6 of these Regulations.
Article 8: Foreign-invested cinemas must observe relevant State laws and regulations, engage in business activities according to the “Film Management Regulations”, accept supervision and management from relevant Chinese government entities, projected film must have a “Public Film Projection Permit” issued by the State Council administrative radio, film and television entity, it is not allowed to project smuggled and pirated films, it is forbidden to engage in commercial videotape, VCD and DVD projection.
Article 9: Foreign invested cinema-related subordinates engaging in any other entertainment business must comply with relevant State provisions.
Article 10: Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan area investors investing in construction or reform of cinemas and engaging in projection work in other provinces, autonomous regions and municipalities of China, will be handled with reference to these Regulations.
Article 11: These Regulations take effect on the day of promulgation.
国家广播电影电视总局、对外贸易经济合作部、文化部令 第 3 号