Notice Concerning Distribution of the Audiovisual (Electronic) Publication Sector System Reform Implementation Plan

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GAPP No. (2009)331

All Central Committee and State organs’ ministries and commissions, all democratic parties, all people’s organization’s controlling entities of press and publications, all provincial, autonomous region and municipal press and publication bureaus, Xinjiang Production-Construction Corps Press and Publications Bureau, Liberation Army General Political Department Propaganda Department Press and Publications Bureau, China Publishing Group Co.

In order to further accelerate audiovisual (electronic) publishing system reform steps, according to the spirit of the “Guiding Opinions Concerning Further Moving Forward Press and Publications System Reform” (GAPP no. (2009)298) and the “Some Opinions Concerning Stimulating Our Country’s Audiovisual Industry’s Healthy and Orderly Growth” (GAPP No. (2009)5), in connection with the reality of audiovisual (electronic) publishing development, the General Administration of Press and Publications has formulated concrete implementation plans for audiovisual (electronic) publishing work unit reform into enterprises and “three into one”.

I, Concerning requirements for reform into enterprises

1. Audiovisual (electronic) publication work units resorting under localities and colleges or universities must have completed transformation before the end of 2009; audiovisual (electronic) publication work units belonging to all Central Committee entities and work units must have reported a system reform plan before the end of 2009, and before the end of 2010 have completed transformation (where book publishing work units resorting under them are decided to belong to the first batch of transformation, the audiovisual (electronic) publication work units resorting under them must complete transformation work at the same time).

2. Audiovisual (electronic) publication work units must, according to the basic requirements of the “Basic Regulations for All Work Units of All Central Ministries and Commissions’ Publishers Transformation Work” (GAPP No. (2009)1), earnestly perform related work such as enterprise asset checkups, financial audits, asset evaluation, property registration, join social security, conclude and sign labour contracts with their staff, establish legal personality administration structures, cancel the legal personality of undertaking, register the enterprise with industry and commerce administration, etc. Those audiovisual (electronic) publication work units not having been able to complete transformation tasks in time, will be closed and cancelled without exception according to relevant regulations.

3. Audiovisual (electronic) publication work unit transformation plans’ main content and reporting and approval procedures shall be conducted with reference to book publishers.

4. Audiovisual (electronic) publication work units already transformed into an enterprise must, according to the requirements of the “Company Law”, accelerate property system reform, complete legal person administration systems, establish modern enterprise systems, and swiftly become a genuine market subject.

II, Concerning “three-in-one planning”

1. Make a batch of stronger and better audiovisual (electronic) publication enterprises

Focal training will be instituted for audiovisual (electronic) publication enterprises with relatively strong power, and relatively good basic conditions, they will be granted support and advantages in aspects such as going on the capital marker, distribution of publication resources, focal programme arrangements, etc., working hard to, within three years, foster five to eight large-scale audiovisual (electronic) publishing group companies.

(1) Focal support in establishing two to three large-scale group companies having music as main occupation, centralizing music creation, publishing, production, duplication, distribution and singer performances into one, achieving net assets and yearly sales income of both exceeding 1 billion Yuan within three years.

(2) Focal support in establishing one to two large-scale group companies having film and television, and encyclopaedic matters as main occupation, grouping activities such as production, publication, duplication, distribution, etc. into one, achieving net assets and yearly sales income of both exceeding 1 billion Yuan within three years.

(3) Focal support in establishing one to two educational audiovisual group companies, large-scale group companies realizing net assets and yearly sales income of both exceeding 1 billion Yuan within three years through integrating domestic educational audiovisual, electronic and network publication resources.

(4) Focal support in establishing an electronic publishing group company, realizing net assets and yearly sales income of both exceeding 1 billion Yuan within three years through developing and integrating electronic and network publication database resources.

At the same time, focal support for 20 independent audiovisual (electronic) publishing and production enterprises with correct guidance, exceptional main occupations, distinctive specialities, abundant power, standardized management, high-efficiency functioning, and strong core competencies. 20 enterprises must conform to the following conditions:

(1) More than 30 enterprise full-time employees

(2) Net assets and yearly sales income both exceeding 10.000.000

(3) Having independent enterprise legal person status.

(4) Yearly domestic production of audiovisual and electronic publication products of no less than 50 items.

(5) Not having a record of violating regulations within the last three years.

(6) Audiovisual and electronic publication and production enterprises having undertaken major State publishing programmes, having won relatively many State-level prizes, having exceptional contributions in the field of “going out”, will be granted preferential consideration.

20 enterprises conforming to the above conditions, must strive vigorously to achieve net assets and sales income both exceeding 100.000.000 Yuan in three years.

2. Integrating and reorganizing a batch of audiovisual (electronic) enterprises.

Integrating audiovisual (electronic) publishing system reform together with publishing resource integration, industry structure optimization and industry distribution adjustment, and quantitative reduction, through macroeconomic regulation means, vigorously encouraging and supporting audiovisual (electronic) publishing work unit advanced integration in areas such as education, science and technology, hygiene, etc., establishing specialized audiovisual (electronic) publishing group companies; vigorously encouraging and supporting multimedia, intersectoral, interregional and inter-ownership system general audiovisual (electronic) publishing group companies, vigorously encouraging and supporting independent audiovisual (electronic) publishing work units to merge into large scale State-owned cultural enterprise groups such as newspaper and periodical groups, publishing groups, printing groups, distribution groups, film and television groups, etc. in many different manners; vigorously encouraging and supporting large-scale State-owned enterprises and privately-run enterprises to take part in audiovisual (electronic) publishing enterprise share-holding system reform and reorganization within areas and scopes allowed by policy.

(1) Audiovisual (electronic) publishing work units having a net asset value and sales income of lower than 3.000.000 Yuan, will in principle not be retained, and must integrate with powerful book publishers, newspaper and periodical publishers or publishing, film and television or culture performance group companies.

(2) For all simultaneous independent audiovisual (electronic) publishers having many legal personalities within all central department work units,  it is suggested that integration will take place within the department, and in principle only one is to be retained, or synthesized into a specialty audiovisual (electronic) publishing group company.

(3) For all simultaneous independent book and audiovisual (electronic) publishers having many legal personalities within all central department work units, it is suggested that audiovisual (electronic) publication enterprisers and book publishers merge, and may preserve a vice-brand as audiovisual (electronic) publication enterpriser.

(4) Encouraging and supporting audiovisual (electronic) publication enterprisers subordinate to local departments such as press and publication, radio and television, culture, etc., to merge into local publishing groups, newspaper and periodical groups, distribution groups, film and television groups, cultural performance groups or powerful book publishers.

3. Closing and withdrawing audiovisual (electronic) enterprises.

Those not meeting market access conditions, and are reluctant to change system during reform, will be closed those not meeting yearly examination criteria in aspects such as personnel, capital, equipment, facilities, etc., will be cancelled, those having activities gravely violating laws or regulations will be revoked according to the law.

(1) audiovisual (electronic) publishing work units with bad operations, are unable to cover debts, and whose development is difficult to sustain, will be closed and withdrawn.

(2) Audiovisual (electronic) publishing work units, during operational processes, not respecting sincerity and honesty, embezzling other persons’ publishing rights with harmful notes and grave circumstances, will be closed and withdrawn.

(3) Audiovisual (electronic) publication work units of which the controlling authorities or managing work units clearly indicate they do not wish to change systems or do not wish to continue operations, will be closed and withdrawn.

(4) Audiovisual (electronic) publication work units which do not conform to one of the following conditions during yearly review, will be cancelled: 1, having organizational structure and obtained editorial staff with State specialized technical personnel qualifications suited to professional business scope needs. Audiovisual (electronic) publication work unit personnel numbers may not be lower than 10, of which those engaging in audiovisual (electronic) publishing work more than two years and have middle-level or higher specialized technological personnel qualification may not be lower than 5; electronic publishers must have more than 2 people having middle-level or higher publishing specialized  professional qualifications. 2, having funds, equipment and business premises adapted to the professional business scope needs. Audiovisual publishers have a registered capital of 300.000 Yuan or higher, electronic publishers have a registered capital of 2.000.000 million Yuan or higher, fixed business premises surface may not be smaller than 200 square metres. 3, having  regular publishing work, the number of audiovisual or electronic publications must reach 10 or more.

(5) Audiovisual (electronic) publication work units having one of the following unlawful activities with grave circumstances, will have their permits revoked according to the law: 1, audiovisual (electronic) publication work units producing or publishing content prohibited by Article 26 and Article 27 of the “Publications Management Regulations”. 2, audiovisual (electronic) publication work units not having reported their yearly publishing planning and topics involving aspects such as State security, social security, etc. to the State Council administrative publications entity for filing. 3, audiovisual (electronic) publication work units changing name, managing work unit or controlling authority, address, legal representative or main responsible persons, business scope, etc., without having conducted registration or registration update procedures according to regulations. 4, audiovisual (electronic) publication work units renting, lending, selling or transferring in any other way the name of that work unit to other work units or individuals, selling or transferring in any other way the book numbers, special electronic publication numbers of that work unit. 5, audiovisual (electronic) publication work units entrusting production of audiovisual products, electronic publications to work units not having obtained the “Audiovisual Products Production Permit” or “Electronic Publication Production Permit”, or entrusting the duplication of audiovisual products or electronic publications to work units not having obtained the “Duplication Permit”. 6, audiovisual (electronic) publication work units publishing non-approved imported audiovisual products or electronic publications without authorization.

III, Concerning organizational leadership.

1. All provincial (autonomous region, municipality) administrative publication management entities are responsible for the concrete coordination work of audiovisual (electronic) publication work unit system reform, under the leadership of the local cultural system reform office.

2. All controlling and management work units must realistically take up their responsibility towards transformation of their subordinate audiovisual (electronic) publication work units, and cancel the audiovisual (electronic) publication work units not completing transformation within the provided time, remaining problems will be resolved by their controlling and managing work units themselves.

3. All localities and all departments must intensify the formulation of audiovisual (electronic) publication work unit transformation planning according to the spirit of their general plan. Local audiovisual (electronic) publication work unit transformation plans must be reported to the General Administration of Press and Publication for filing before the end of November 2009, all central department work units’ audiovisual (electronic) publication work unit transformation planning must be reported to the General Administration of Press and Publication before the end of December 2009.

It is hereby notified

28 October 2009













































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