Some Opinions Concerning Stimulating Our Country’s Audiovisual Industry’s Healthy and Orderly Growth

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GAPP No. 2009(5)

All relevant central and national  ministry and commission, all democratic party, all civic organization press and publication controlling authorities, all provincial,  autonomous region, municipal Press and Publication Bureaus, Xinjiang Production Contraction Corps Press and Publication Bureau, Liberation Army General Political Department and Propaganda Department Press and Publication Bureau, China Publishing Group Company:

Since reform and opening up, our country’s audiovisual industry has entered a new period of development, and published a large batch of excellent audiovisual products disseminating advanced culture, having important cultural accumulation value and have been greatly welcomed by the masses, have shaped a relatively complete industry system for audiovisual publication, production, duplication, import, wholesale, retail, rental, etc., and has made important contributions to the overall work situation of serving the Party and the State, disseminating scientific and cultural knowledge, satisfying the increasingly growing spiritual and cultural needs of the masses, stimulating the prospering of our country’s socialist culture, etc.

But, in recent years, our country’s audiovisual reform, development and management problems have become increasingly exceptional. The audio and video industry system reform has been correspondingly delayed, industrial structure and deployment are not reasonable; production transformation has been slow, and new business attitudes have not yet materialized; original creative capacity has shrink, a number of audiovisual publication work units’ “emptification” phenomenon is grave; a few publication, production, duplication and distribution enterprises deal unlawfully or against regulations, making audiovisual products with vulgar and even sexual content drifting into the market; a number of responsible and sponsoring work units have abandoned their management duties, a small number of administrative management entities keep watch perfunctorily; piracy and illegal network downloading is grave, market management urgently needs strengthening. In order to further move forward the reform of the Press and Publication system, stimulate the healthy and orderly development of the audiovisual industry, the following opinions are put forward.

I, Guiding ideology and principal needs of stimulating our country’s audiovisual industry’s healthy and orderly development

1. The guiding ideology of stimulating the audiovisual industry’s healthy and orderly development is: holding high the banner of socialism with Chinese characteristics, taking Deng Xiaoping theory and the important “Three Represents” thought as guidance, fully implementing scientific development views, and according to the general needs of holding high the banner, revolving around the whole situation, serving the people and reform and renew liberate thought, seek the truth from facts, go forward with the times, fully moving forward system and organization renewal, putting forth effort to resolve deep-level contradictions and problems restricting audiovisual industry development, making effort to stimulate the audiovisual industry’s healthy and orderly development, promoting the development and prospering of socialist culture.

2. The principle needs of promoting the audiovisual industry’s healthy and orderly development are: persisting in the advancing orientation of advanced socialist culture, persisting in the correct publication orientation, placing social benefit first, making effort to realize unification of social benefit and economic benefit, persisting in deepening reforming and renewing systems and organizations, remoulding the main body of the market, perfecting market systems; persisting in, with capital as link,  integrating market functioning and administrative guidance, moving forward capital reorganization,  optimizing industrial structure, transform the development manner, raise our country’s audiovisual industry’s domestic and foreign competitive power and influence through strengthening and making excellent a number of, integrate and reorganize a number of, closing down and withdrawing a number of audiovisual enterprises; persisting in grasping prospering with one hand, grasping management with one hand, through strengthening management, provide a desirable environment for reform and development.

II, Deepening reform adjusting structure, strengthening the vigour of the audiovisual industry’s healthy and orderly development

3. Vigorously and reliably moving forward audiovisual publishing work unit enterprise and system reform. Apart from audiovisual publication work units clearly for public interest, local and colleges and universities’ subordinate audiovisual work units must by the end of 2009 have completely finished enterprise and system reform, all central entities and work units’ subordinate publication work unit must by the end of 2010 have completely finished enterprise and system reform. Book publishers’ subordinate audiovisual work units and book publishers must complete enterprise and system reform with the others. Already reformed audiovisual publication work units must, according to the demands of the “Company Law”, speed up production rights system reform, complete the legal person administration structure, establish modern enterprise systems, and turn into true main market parts.

4. Strengthening and making outstanding a number of audiovisual enterprises. According to the principles of superiority helps each other, voluntary partnerships, on the basis of market deployment resources, through macroeconomic regulation means, entities and work units possessing many audiovisual enterprises are encourage to partner their resources, establish audiovisual group companies; all sorts of audiovisual enterprises with similar work and common resources are encouraged to establish audiovisual group companies across sectors, across regions and across entities. Within three years, 3 to 5 relatively large-scale comprehensive audiovisual group companies and 10 to 20 special and distinctive specialized audiovisual companies should be fostered.

5. Integrating and reorganizing a number of audiovisual enterprises. Conducting capital integration between audiovisual publication and areas such as book publication, periodicals publication, network publication, etc., is to be vigorously moved forwards; large-scale state-owned newspaper and periodical groups, publication groups, printing groups, distribution groups etc., are encouraged and supported to, with capital as link, merge and reorganize the current audiovisual publication, production, duplication and distribution enterprises; large-scale state-owned enterprises are encouraged and supported to participate in audiovisual enterprises’ stock holding system transformation.

6. Closing down and withdrawing a number of audiovisual enterprises. Those not fulfilling market entry conditions, or those not willing to reform enterprise and system, will be closed down; those not conforming to annual check-up conditions in aspects such as personnel, capital, equipment, premises, etc., will be cancelled; those that in cleaning up and reorganizing display activities gravely illegal or violating regulations, will be revoked according to the law.

7. Audiovisual publication work units are encouraged to cooperate with social capital in technological and personnel aspects, through strengthening management and standardizing operations, lead non-publicly owned capital in many kinds of ways into audiovisual publication areas permitted by policy. State-owned audiovisual publication work units are encouraged to cooperate with non-state-owned enterprises in conducting many forms of cooperation, under the prerequisite of guaranteeing correct orientation and the state-owned being dominant.

III, Overall planning, vigorous renewal, providing policy guarantees for the audiovisual industry’s healthy and orderly development

8, Audiovisual industry long-term development planning will be formulated, structure and deployment adjustment will be speeded up, industry concentration will be raised, industrial upgrading must be moved forward; individual innovation will be intensified, in focal areas such as intellectual property rights protection, new industry attitude cultivation, high-tech engineering etc., breakthroughs will be obtained, stimulating steady industry growth.

9, Using the market system, concentrating superior resources, regions with high industry concentration such as Beijing, Shanghai, Guangdong, etc., are encouraged to establish music creation industry bases (territories), to stimulate ethnic music product development, creation ad well as connected industry development.

10. Domestically produced audiovisual product development and production is encouraged. Supporting 50 audiovisual publication and production enterprises having relatively strong innovative power is stressed, every two years, 100 excellent originally created audiovisual products will be chosen and awarded; the support dynamic of public benefit audiovisual products will be enlarged, the publication, duplication and distribution work of audiovisual products catering to aspects such as the “three rurals”, minors and ethnic minority regions, etc. will be supported.

11. Audiovisual enterprises vigorously supporting and using new media is encouraged and supported, transformation towards digitalization will be strengthened, cooperation with communication operation businesses, network operation businesses and hardware manufacturing businesses will be comprehensively conducted, many sorts of audiovisual publication and distribution forms using carriers such as the Internet, mobile telephones, television, mobile hard drives, databases, electronic reading viewers, integrated circuit cards, etc., will be expanded, new business attitudes will be energetically developed.

12.Audiovisual product sale channels will be broadened, on a basis of fully developing the function of traditional channels such as Xinhua bookstores, etc, the focus will be on supporting  the establishment of having a large-scale chain nature audiovisual sale channel, realizing the chain-formation of audiovisual sales of supermarkets or convenience stores, large-scale department stores, petrol stations, airports, hotels, tourist spots, newspaper kiosks, etc., integrating distribution and delivery, integrating management.

13. Domestically produced audiovisual products’ “marching out” project will be vigorously implemented. Audiovisual enterprises meeting conditions are encouraged and supported to “march out”, using exclusive investment, joint investment and cooperation means, Chinese and international audiovisual electronic exhibitions will be organized, domestic enterprises will be subsidized to take part in influential international audiovisual expos, the “Audiovisual Products Export Reward Rules’ will be formulated, each year, 100 “marching out” audiovisual products and 20 audiovisual enterprises making exceptional contributions in the field of “marching out” will be rewarded.

14. Audiovisual industry’s creative planning personnel, specialist technical personnel, enterprise management personnel and market sale personnel resources development and training will be strengthened; through means such as developing specialist training, international exchange, attracting from abroad, with corresponding institutes jointly establishing specialist and personnel training bases, etc., efforts will be made to bring up a large number of all sorts of excellent personnel urgently needed by the sector.

15. On the basis of implementing already exiting preferential policies supporting reform and sector development, the dynamics of vigorously striving from relevant entities toe enlarge support for audiovisual sector development, and more favourable policies will be granted in finance and taxation aspects.

4, Strengthening management, perfecting the system, create a desirable environment for the audiovisual industry’s healthy and orderly development

16. Audiovisual Publication work units must strictly implement an on-the-job training system, an editorial responsibility system, a strictly reporting selected topics and major topics for filing and imported audiovisual products reporting and specimen submission system, standard publication number, duplication entrustment letter  application and bar code use procedures, realistically bear responsibility for all publication links, guarantee that audiovisual product content and publication procedures conform to provisions of laws and regulations,

17. The duplication work unit must strictly enforce the duplication entrustment letter’s management system and SID code system, realistically perform duplication letter examination and filing procedures, within two years of duplication, must keep materials such as the duplication entrustment letter, the duplication entrustment contract and audiovisual product specimens, etc.; and may not duplicate compact discs in advance of receiving the duplication entrustment letter, may not use copied, faxed or altered duplication entrustment letters, they are strictly prohibited activities of duplicating entrustment between work units; they are strictly prohibited to use duplicate compact discs without SID-code or having an SID-code not issued by administrative entities.

18. Audiovisual distribution work units must strictly lock up stock, and may not buy stock from illegal publication or distribution channels, may not take part in “sale of publication numbers” activities; before sale of audiovisual publications, business units entering into the publications wholesale market, must submit  a specimen of the publication to the wholesale market management organ of examination, the wholesale market management organ must establish filing for future reference.

19. Towards audiovisual publication, production, duplication and distribution enterprises violating laws and regulations, a liability investigation system will be implemented, the administrative Press and Publications entities will according to law impose administrative punishments such as  warnings, confiscation of unlawfully handled audiovisual products and unlawful gains,  fines, closing business for rectification, cancelling permits, etc.; of those enterprises of which permits are cancelled, legal representative or main person in charge may not undertake the position of lawful representative or main person in charge of an audiovisual publication, duplication or distribution enterprise within 10 years of cancellation of permits. Where corresponding responsible persons have committed a crime, it will be transferred to judicial authorities according to law, and investigated for criminal liability.

20. The controlling and sponsoring work unit of an audiovisual publication work units must earnestly carry out its duties, supervising that the publication work unit complies with the Party line, guiding principles and policies and State laws, regulations as well as administrative policies and guidelines, strictly examine the important selected topic planning of the publishing work units, carry responsibility for the major matters concerning the publication work units; controlling and sponsoring work units must undertake leadership responsibility concerning grave errors and other major problems in aspects such as publication content, etc., of their subordinate publication work units, and the administrative government controlling entity will put foreyard a recommendation for investigation with its higher-level work unit or entity.

21. All levels’ administrative press and publication entities must according to law, strengthen oversight of audiovisual publication, management, duplication and distribution enterprises, earnestly perform yearly inspection work, establish and perfect complete and comprehensive management systems; administrative press and publications entities work personnel using work privileges and work influence to accept property or other benefits from other persons, and allow the establishment of audiovisual publication, production, duplication and distribution enterprises not meeting conditions, will be administratively punished according to law; where it constitutes a crime, it will be transferred to judicial authorities according to law, and investigated for criminal liability.

22. Audiovisual industry groups must initiate audiovisual enterprises’ strengthening of social responsibility since, establish and perfect industry self-management and self-regulation systems, develop government and enterprises bridging and linking functions, according to law, protect the lawful rights and interests of society and public and those in business.

23. Persisting in “grasping sector development in one hand, grasping sector atmosphere establishment in one hand, stimulating the audiovisual industry’s healthy and orderly development and moving forward the establishment of sector atmosphere will be organically integrated, anti-corruption and pro-honesty and sincerity systems establishment will be realistically strengthened, a “doing business according to law, lawbreakers must be dealt with, fair trading, honest promises” market environment will be vigorously constructed.

24. The revision work of regulations and rules such as the “Audiovisual Product Management Regulations” and “Audiovisual Product Publication Management Regulations”, “Audiovisual Product Production Management Regulations”,” Duplication Management Rules” “Audiovisual Product Wholesale, Retail and Rental Management Rules”, “Audiovisual Products Import Management Rules” “Sino-Foreign Coproduced Audiovisual Products Retail Enterprises Management Rules”, etc. will be speeded up, to provide legal guarantees for the audiovisual sector’s development.

25. Infringing and pirating activities will be gravely attacked. Copyright enforcement and social supervision will be further strengthened, special operations attacking infringement and piracy will be continuously launched, the anti-pricy reporting and investigation reward system will be perfected, attack dynamics concerning activities of illegal network downloading and faking all sorts of infringing and pirated audiovisual products produced by publishing work units will be enlarged, the revision work of the “Copyright Law” will be vigorously stimulated, to realistically protect the lawful rights and interests of copyright holders.

26: The “Sweeping pornography and striking illegality” fight will be developed more deeply and lastingly, Administrative and judicial means will be used to enlarge the attack dynamics against activities of illegal publication and sale of audiovisual products, the localities are prohibited from protection, and the law will be strictly enforced, to guarantee the audiovisual sector’s healthy and ordered development.

20 July 2009



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