In order to adapt to the new circumstances of our country’s accession to the World Trade Organization, further standardize attracting foreign capital in the cultural area work, raising the quality and level of using foreign capital, safeguarding national cultural security, stimulating the healthy and orderly development of the cultural industries, the following opinions are hereby put forward:
Article 1: Foreign businesses are permitted to establish enterprises such as packaging and wrapping printing, book and periodical sale, recordable compact disk production, art product business, etc., in the wholly-owned, joint venture and cooperative methods. Under the condition that the Chinese side controls 51% of the shares or more, or the Chinese side has the leading position, foreign businesses are permitted to establish enterprises such as publications printing and read-only compact disc reproduction in the joint venture and cooperative methods. Under conditions where our country’s right to examine audiovisual product content is not harmed, foreign business are permitted to establish audiovisual product – apart from film – retail enterprises in the cooperative method where the Chinese side has the leading position.
Article 2: Under the condition that the Chinese side controls 51% of the shares or more, or the Chinese side has the leading position, foreign business are permitted to establish and operate enterprises such as performance venues, cinemas, performance managing organs, film technology, etc., in the joint venture or cooperative method, and participate in shareholding reform of State-owned book, periodical and audiovisual product distribution enterprises.
Article 3: Hong Kong and Macau service providers are permitted to establish joint venture, cooperative and wholly owned and operated performance venues in the Mainland, establish performing art brokerage company branch organs, establish joint venture or cooperative performance brokerage organs, establish Internet culture business organs and Internet surfing service business venues controlled by the Mainland, establish audiovisual product retail joint venture entities with shareholding not exceeding 70%, and audiovisual product retail cooperation enterprises with rights and interests not exceeding 70%, and in the wholly-owned method, newly establish or reconstruct cinemas, and establish wholly-owned companies distributing domestic films in local trial spots.
Article 4: It is prohibited for foreign businesses to invest in, establish and operate news organs, radio stations, television stations, radio and television transmission coverage networks, radio and television programme production and broadcast companies, film production companies, Internet culture business organs and Internet surfing service business venues (except for Hong Kong and Macau), culture and art performance groups, film import and distribution, and video screening companies. It is prohibited for foreign businesses to invest or engage in book and periodical publishing, general wholesale and import work, audiovisual product and electronic publication publishing, production, general wholesale and import work, as well as using information networks to launch audiovisual programme services, news websites and Internet publishing work, etc. Foreign businesses may not covertly enter into propaganda work areas such as channels, frequencies, editing and publishing, etc. through business activities such as publications retail, printing, advertising, cultural facility reconstruction, etc.
Article 5: Administrative culture, press and publications, and radio, film and television entities are responsible for keeping well the sector access gate, conducting pre-examination and approval over applications for establishing foreign wholly-owned and joint venture or cooperative enterprises according to the law, standardizing the utilization scope and shareholding proportion of foreign capital. After pre-examination and approval, according to the powers and procedures determined by regulations related to foreign investment, reporting to the corresponding entity for examination and approval.
Article 6: For applications to establish foreign wholly-owned and joint venture or cooperative enterprises, the investing side must have funds, specialist personnel and business premises suited to the business scale, and not having a record of violating laws, regulations or other harmful records for three years running. Administrative examination and approval implementation organs must according to statutory conditions and procedures conduct earnest examination of application documents submitted by applicants. It is necessary to pay attention to selecting foreign culture enterprises with solid strength, standardized management, advanced technology, and that are friendly to us to conduct joint ventures and cooperations, guaranteeing that attracted foreign capital quality is reliable.
Article 7: Foreign capital attraction in audiovisual product retail, culture and art performance venues, performance brokerage organs, book and periodical retail, recordable compact disk production, read-only compact disc reproduction, etc., as well as Internet culture business organs, Internet surfing service business organs attracting Hong Kong or Macau region capital, after examination and verification by the provincial-level administrative controlling authority, and preliminary examination and approval by the State Council administrative controlling authority, according to relevant foreign investment regulations, is to be reported to the corresponding entity for examination and approval.
Article 8: Sino-foreign co-produced films, television dramas and cartoons are examined and approved by the State Administration of Radio, Film and Television. Foreign-invested cinemas, after obtaining provincial-level administrative radio, film and television entity agreement, according to relevant foreign investment regulations, is reported to the corresponding entity for examination and approval, and reported to the State Administration of Radio Film and Television and Ministry of Culture for filing.
Article 9: Publications printing and packaging and wrapping printing attracting foreign capital, is after provincial-level administrative press and publications entity preliminary examination and approval, according to relevant foreign investment regulations, is reported to the corresponding entity for examination and approval or filing.
Article 10: According to our country’s WTO accession commitments doing well foreign capital attraction work. All localities and all entities may not expand foreign capital attraction scope without authorization, may not in excess of their authority formulate local or sector opening-up policies and examination and approval items. Enterprises such as advertising, distribution, printing, etc., of important media such as party newspapers and periodicals, radio and television stations, etc., as well as distribution and film group companies attracting foreign capital, must report to the relevant State Council administrative controlling authority for examination and approval, and obtain Central Propaganda Department agreement. Attracting foreign quality without approval, without authorization, and surmounting our country’s WTO commitments and relevant regulations, must be timely corrected, strictly investigated and prosecuted.
Article 11: Establishing and perfecting market withdrawal mechanisms, strictly providing permits, earnestly implementing annual examination systems. Imposing administrative punishments such as warnings, fines, permit cancellations, etc., against foreign-invested enterprises breaking regulations, in view of the different circumstances, according to the law. Administrative industry and commerce management entities, must order foreign-invested enterprises of which permits are cancelled to conduct cancellation of registration or modification of registration.
Article 22: All levels’ administrative culture entities, administrative radio, film and television entities, and administrative press and publications entities must strengthen macro-economic and daily supervision and management over foreign capital attraction, earnestly implement regulations related to imported capital management work. Surmounting weak links, improving management methods, perfecting follow-up supervision and management. Forcefully moving comprehensive law enforcement forward, expanding attack strength against activities breaking laws and regulations.
Article 23: The Ministry of Culture State Administration of Radio, Film and Television and General Administration of Press and Publications, according to these Opinions, formulate and perfect concrete departmental implementation rules.
This entry was posted in Audiovisual Publications, Cinema, Examination Procedure, Film, Foreign-Related and Import, GAPP, International Treaties and Commitments, Investment, MoC, MOFCOM, SARFT, Structural Reform, Television.