NDC No. (2006) 32
All provincial, autonomous region and municipal People’s Governments, all State Council ministries and commissions, all directly subordinate organs:
The Ministry of Finance, Ministry of Education, Ministry of Science and Technology, Ministry of Information Industry, Ministry of Commerce, Ministry of Culture, General Administration of Customs, State Administration of Industry and Commerce, State Administration of Radio, Film and Television, General Administration of Press and Publications “Some Opinions Concerning Supporting our Country’s Cartoon Industry Development” have been agreed with by the State Council, are hereby transferred to you, please implement them earnestly.
State Council Secretariat
24 April 2006
Cartoon products are cultural products loved by the popular masses, especially minors. Developing the cartoon industry has an important significance for satisfying the popular masses’ spiritual culture needs, moving the construction of advanced socialist culture and ideology and morals of minors forward, promoting cultural industry development, fostering new economic growth points. In recent years, our country’s cartoon industry has developed relatively quickly, a batch of cartoon enterprises has burst into the limelight, but it must also be seen that there still is a very large difference between our country’s cartoon industry’s development and the popular masses’ incessantly increasing spiritual culture needs and incessantly developing market requirements, and the difference with developed cartoon countries is even larger. In order to promote the healthy and speedy development of our country’s cartoon industry, the following opinions are hereby put forward:
I, Guiding ideology, basic thinking and development objectives for cartoon industry development.
(1) Cartoon industry refers to the industry that has “creativity” at the core, has animations or cartoon drawings as external form, includes development, production, publication, dissemination, performance and sales of direct cartoon products such as cartoon books, periodicals, films, television, audiovisual products, stage plays and new cartoon product varieties based on modern information dissemination technology means, as well as production and operation of derivative products such as costumes, toys, electronic games, etc., related to cartoon images.
(2) Guiding ideology. According to the requirements of making advanced socialist culture and the harmonious society flourish and develop, promoting cartoon product creation carrying forward the excellent culture of the Chinese nation, with vigorous and healthy content, sticking close to the masses, satisfying the popular masses’ spiritual culture needs, creating a beneficial for minors’ healthy upbringing. According to the requirements of developing a socialist market system, progressively shaping a cartoon industry development setup with corresponding complete structures, structural deployment is more reasonable daily, with an advanced overall technological level, orderly market competition, and clear economic benefits.
(3) Basic thinking. Based on the real development of our country’s cartoon industry, according to the specialities and rules of socialist market economy development and socialist advanced culture construction, striving to remove structural, mechanism and systemic obstacles for cartoon industry development, creating a beneficial social environment and market conditions for cartoon industry development. Adopting realistic and effective steps to strengthen our country’s cartoon industry capacity for indigenous positive development. Focusing on supporting domestic enterprises in indigenous research and developments, development, production, publication, dissemination, performance and sales of direct cartoons such as cartoon books, periodicals, films, television, audiovisual products, stage plays and new cartoon products based on modern information dissemination technology means having our country’s indigenous intellectual property rights. Encouraging production and operation of derived products related to cartoon images such as costumes, toys, electronic games, etc.
(4) Development objectives. Through policy promotion, progressively shaping mature cartoon industry chain with mutual linkages in art image creation, cartoon product production, supply and sales; forging a number of large-scale cartoon key enterprises with solid strength and having international competitiveness, fostering a batch of small and medium cartoon enterprises full of vitality and with strong specializations, creating a batch of cartoon brands having Chinese style and international influence. Striving to within five to ten years, making domestic originally-created cartoon product production amount to increase significantly, production quality to clearly go up, technological innovation capacity to be strengthened continuously, excellent product masterpieces to emerge in large number incessantly, cartoon industry creation, development and production capacity to ascend into the ranks of large and strong world cartoon countries, simultaneously with progressively occupying the main domestic market, vigorously developing international markets.
(5) Establishing an interministerial joint conference system supporting cartoon industry development. The responsible comrades from entities such as the Ministry of Culture in the lead, the Ministry of Education, the Ministry of Science and Technology, the Ministry of Finance, The Ministry of Information Industry, the Ministry of Commerce, the General Administration of Customs, the State Administration of Industry and Commerce, the State Administration of Radio, Film and Television and the General Administration of Press and Publications, etc., will participate in the interministerial joint conference, its office is set up within the Ministry of Culture.
II, Expanding input strength, focusing on supporting original creation activities, promoting shaping of a mature cartoon industry chain.
(6) The Central Financial Administration establishes special funds supporting cartoon industry development. The specialized funds are mainly to be used for supporting creation and production of excellent originally-created cartoon products, ethnic and folk cartoon material database construction, as well as establishing key segments for cartoon industry chain development such as cartoon public service systems, etc. Relevant localities’ Peoples Governments must adopt effective steps, expand input, vigorously support cartoon creation activities, promote shaping of a mature cartoon industry chain.
(7) Establishing excellent originally-created cartoon product selection, award and popularization mechanisms. Establishing State-level originally-created cartoon awards, awarding our country’s originally-created cartoon product with healthy content, strong artistry, high innovation, deeply loved by the masses. Supporting and encouraging originally-created cartoon product dissemination, performance and publication, through organizing all sorts of activities such as originally-created cartoon competitions and exhibitions, etc, popularizing originally-created cartoon products.
(8) Encouraging cartoon publication and broadcast organs to expand the proportion of published, magazine-published and broadcasted domestic cartoon products, adopting effective steps to expand cost compensation for domestic cartoon products published, magazine-published, broadcast or performed.
III, Supporting cartoon enterprise development, strengthening market competitiveness
(9) Expanding financial input support strength, encouraging cartoon enterprises to construct modern enterprise systems. Removing all sorts of obstacles blocking social capital to enter the cartoon industry, encouraging using small or medium enterprise establishment funds to expand risk capital into the cartoon industry, encouraging large-scale Stat-owned strong enterprises to enter the cartoon industry through methods such as share participation, share control or merger, encouraging non-public capital to equally invest and participate in all sorts of cartoon products research, development, and creation and production. According to the “Foreign Investment Industrial Guidance Catalogue” and relevant policies for attracting foreign capital in the cultural sphere, guiding foreign businesses to invest in all kinds of cartoon products research and development, and creation and production. Poly banks must provide financial support to cartoon enterprises meeting conditions. Small and medium cartoon enterprises meeting conditions are to be brought into the funding scope of the “Science and Technology-Type Small and Medium Enterprise Technology Innovation Fund”. Preferentially arranging cartoon enterprises meeting conditions to enter the financial market inside the country.
(10) Cartoon enterprises accredited by the relevant State Council entity indigenously developing and producing cartoon products, may apply for enjoying current State V.A.T. and income tax preferential policies for encouraging the software industry development; cartoon enterprising indigenously developing and producing cartoon products involving business tax payment services (excluding the advertising sector and the entertainment sector), temporarily subtract 3% of the tax rate when business tax is collected. Cartoon products and enterprise scope and management rules for enjoying the above preferential policies shall be formulated elsewhere by the Ministry of Finance and the General Taxation Administration in consultation with relevant entities.
(11) Cartoon enterprises accredited by the relevant State Council entity indigenously developing and producing direct cartoon products, on products that they truly need to import, may enjoy the preferential policies of exemption from import duties and import segment V.A.T. Concrete management rules for the exempted product scope and management will be formulated elsewhere by the Ministry of Finance in consultation with relevant entities.
IV, Supporting State cartoon industry base construction, promoting the integral development of cartoon “production, study and research”
(12) Vigorously supporting construction of multi-function, integrated State cartoon industry bases collecting talent education and training, technological development and services, key enterprise intensive development, small and medium enterprise incubation as well as international economic and technological cooperation. The interministerial joint conference must do well State cartoon industry base deployment and planning, formulate corresponding base objectives, are responsible for base accreditation, establishing relevant appraisal mechanisms.
(13) Newly-accredited State cartoon enterprise base construction, must preferentially integrate with high and new technology development regions and software parks, fully utilizing present conditions such as policies, technology services, venues etc.
(14) State cartoon base implement the survival of the fittest system, every three years, a one-time appraisal and readjustment is conducted.
V, Supporting core cartoon technology research and development, providing technological guarantees for cartoon industry development
(15) Entities such as science and technology, information industry, etc., must through present channels expand support strength for cartoon industry development basic, strategic and forward-looking core technology research and development, and industrialization, vigorously promote cartoon technology equipment and public technology platform support service structures and shared mechanism construction.
(16) Encouraging domestic and foreign enterprises, scientific research institute, higher education institutes, etc., through all kinds of methods, to provide tools and corresponding services for cartoon creation to relevant work units.
VI, Supporting cartoon talent training, strengthening cartoon industry development reserve strength
(17) Giving rein to the superiority of domestic education and training resources. It is necessary to bring cartoon talent training into State culture and art-type personnel training plans and grant suitable support. According to market requirements and cartoon industry development tendencies, perfecting cartoon talent training cost sharing mechanisms, expanding talent training scale, reforming talent training models, vigorously utilizing methods such as vocational education and modern distance learning, etc., to train cartoon talents. Through methods such as organizing creation competitions, establishing small interest groups, etc., training and guiding the masses creation interest and consumption habits concerning cartoon products, expanding domestic cartoon product influence. Fully giving rein to the vigour of organs and work units such as cartoon enterprises, scientific research institutes, sector organization, higher education and professional education, etc., developing cartoon technology and talent training.
(18) Vigorously utilizing foreign superior education resources. Taking cartoon industry requirements as guidance, through channels such as “studying abroad funding” etc., fostering cartoon teaching teams and superior talents; inviting foreign cartoon creativity, technology and enterprise operation and management expert to come to China for lecturing and work.
VII, Expanding market supervision and intellectual property rights protection, creating a beneficial environment for cartoon industry development
(19) Strengthening cartoon industry intellectual property rights protection. Protecting intellectual property rights is a basic guarantee for cartoon industry subsistence and development, it is necessary to vigorously encourage cartoon product copyright registration, according to the law adopting steps focusing on protecting cartoon products’ intellectual property rights, strengthening supervision over cartoon operations and markets, strictly attacking all kinds of activities of smuggling, infringing and pirating cartoon products.
(2) Strengthening examination over imported cartoon products, guaranteeing cartoon product content vigour and health.
VIII, Supporting cartoon product in “marching out”, expanding cartoon industry development space
(21) Establishing and completing cartoon industry foreign service support structures. Supporting our country’s cartoon enterprises to expand into foreign markets, suitably subsidizing cartoon product export and dubbing fees. Through “Small and Medium Enterprise International Market Expansion Funding” channels, vigorously encouraging and supporting excellent domestic cartoon works and products to go abroad to participate in exhibitions. The China Import and Export Bank may provide export credit support for cartoon enterprises exporting cartoon products. Vigorously utilizing State export credit guarantees to promote cartoon product sales on foreign markets.
(22) Enterprises exporting cartoons enjoy uniformly State-regulated export tax return (exemption) policies. Enterprises exporting cartoon copyright may be suitably rewarded. Business tax is not levied over foreign income of cartoon enterprises obtained by providing services abroad, income tax already paid abroad may be deducted according to regulations.
IX, Initiating sector self-regulation, promoting the cartoon industry ‘s healthy and orderly development
(23) All levels’ entities such as culture, radio, film and television, press and publications, information industry, etc., must implement sector management and supervision over the cartoon industry. Encouraging establishment at different levels of cartoon industry associations according to the extent of cartoon industry development gathering, supporting sector associations to coordinate with government entities in formulating sector standards and cartoon classification systems, remove blockages from communication channels between enterprise and government, guaranteeing and promoting the cartoon industry ‘s healthy and orderly development. Fees required by all levels’ sector associations for launching activities are to be jointly borne by the association members, and certain social assistance may also be received after approval.
X, Doing well cartoon industry standard formulation and cartoon enterprise accreditation for enjoying support policies work.
(24) Cartoon industry sector standards and cartoon enterprise accreditation standards for enjoying policies as provided in these Opinions shall be formulated by the interministerial joint conference.
(25) For cartoon enterprises enjoying policies as provided in these Regulations, an annual examination system is implemented. Enterprises not meeting qualifications in annual examination, may not again enjoy relevant preferential policies.
(26) Implementation of accreditation and annual examination work of cartoon enterprises enjoying policies as provided in these Regulations, is the concrete responsibility of the provincial-level or higher culture, radio, film and television, press and publications, information industry, tax, etc., entity.
XI, Strengthening organizational guidance, coordination and cooperation, jointly promoting cartoon industry development
(27) All regions and all relevant entities must according to the requirements of these Opinions, unify ideology, raise understanding, strengthen organizational guidance, bring promoting cartoon industry development into their agendas, earnestly grasp implementation of all policies, laws and regulations. Relevant State Council entities must bring mutual support, strengthen coordination and cooperation, timely investigate and resolve major problems in cartoon industry development, jointly promote cartoon industry development.
(28) All provincial, autonomous region and municipal People’s Governments and relevant State Council entities must, according to the spirit of these Opinions, and integrating reality, formulate complete sets of implementation rules and concrete policy steps.
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