Guiding Opinions Concerning Stimulating Flourishing and Development of the Film Industry

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NDC No. (2010)9

All provincial, autonomous region and municipal People’s Governments, all State Council ministries and commissions, all directly subordinate entities:

Film is one of the cultural entertainment forms deeply loved by the masses, the film industry is a cultural industry with high technological content, high added value, low resource consumption and low pollution. Vigorously flourishing and developing the film industry, has important significance for strengthening socialist culture construction, satisfying the masses’ spiritual culture needs, stimulating integrated development of economy and society, and to enlarging the international competitiveness and influence of Chinese culture, strengthening State culture soft power. In recent years, the film sector has been deeply reformed, resolutely innovated, products are more abundant every day, the market is more dynamic every day, obtaining beneficial societal effects and economic effects. In order to deeply implement the significant deployment of the 17th Party Congress concerning stimulating grand socialist culture development, earnestly implement Central policy deployment in reaction to the international financial crisis, preserving stable, relatively quick economic growth, accelerate cultural industry development, in order to stimulate the flourishing and development of the film industry, with the agreement of the State Council, the following guiding opinions are put forward.

I General requirements, basic principles and development objectives

(1) General requirements.

Taking Deng Xiaoping Theory and the important thought of the “Three Represents” as guidance, deeply implementing the scientific development view, according to the general requirements of raising high the flag, centring on the large picture, serving the people, reform and innovation, firmly grasping the correct orientation, persisting in the direction of the “Two Fors” and the “Double Hundred” policy, advancing the socialist core value system, walking the road of film development with Chinese characteristics, taking enriching products and accelerating industry development as main theme, taking reform and innovation as impetus, taking digital technology as support, taking modernization of infrastructure as backing, taking scientific management as guarantee, taking satisfying the people’s daily increasing spiritual cultural needs as starting point and stopping point, energetically stimulating our country’s film industry leapfrogging development, realizing the historic transition from a large film country to a strong film country.

(II) Basic principles.

1. Persisting in correct orientation, scientific development. Correctly grasping the double properties of films as ideology and cultural commodity, giving free rein to film’s double function as aesthetic entertainment and education, abiding by both socialist market economy and cultural creation and production principles, from beginning to end putting social interest first, diligently realizing the unification of social benefit and economic benefit.

2. Persisting in putting people first, serving the masses. Fixing the eyes upon guaranteeing the people’s basic cultural interest, satisfying the people’s multilevel, many-faceted and diverse spiritual cultural needs, endeavouring to enrich products, making the market flourish, raising quality, improving service, guiding consumption, stimulating growth.

3. Persisting in market operation, political stimulation. Fully giving rein to the basic function of the market in stimulating film industry development, raising money through many channels. Strengthening integration between market operation and political support, integration between industrial operation and public service, through deepening reform, perfecting policies, strengthening the construction of the legal system, vigorously stimulating system mechanism innovation, artistic innovation, scientific innovation, operational innovation and management innovation, basing on the country’s nature, studying and learning from excellent world culture, incessantly strengthening film industry development vitality and life force.

4. Persisting in focal breakthroughs, and general stimulus. Tightly grasping key links and focal problems in film industry reform and development, endeavouring to implement a good product strategy, key enterprise brand strategy and focal projects and major programme stimulation strategy, letting one unit guiding the whole, earnestly strengthening the whole strength, competitiveness and influence of the film sector.

(III) Development objectives:

The general objectives are: by the end of 2015, though reform and innovation, enlarging income, accelerating development, establishing and perfecting a film industry operation system with fair market competition and self-reliant enterprise operation, a public service film system with market functioning, enterprise operation, government buying, and the public receiving benefits, an administrative film management system administered according to the law, scientifically regulated and controlled, guaranteed forceful and effectively managed and a digital film distribution and screening network covering cities and villages, completely raising film creation production force, operation management skills, scientific innovation skills, public service skills and international dissemination skills, producing more excellent products, producing more talent, producing more benefit, incessantly satisfying the daily increasing spiritual culture needs of the people in cities and villages.

1. Clearly raising creation and operation skills and brand influence. Shaping a number of large-scale backbone film enterprises of excellent occupation, famous brand, solid force and strong competitiveness.

2. Clearly strengthening the function of scientific support. Film science research and quality examination work must be strengthened, technical standard systems and technical service supervision platforms must be established and perfected, film digitalization technology and equipment levels must be substantially raised, film production and processing quality must be clearly improved, film digitalization transformation, maintenance, storage, transmission and projection, cartoon software development, etc., must be significantly advanced.

3. Infrastructure construction must be clearly improved. Digital film distribution and screening networks must be improved daily. Cinema scale must be speedily enlarged, basically realizing digital cinema coverage of prefecture-level cities, county-level cities and county towns meeting conditions nationwide. From 2009 until 2012, basically completing prefecture-level city digital cinema establishment and transformation duties, completing part of county-level cities digital cinema establishment and transformation duties; from 2013 until 2015 basically completing county-level cities and county towns digital cinema establishment and transformation duties. Localities in the Eastern regions and those meeting conditions may take the lead in construction.

4. Rich and abundant products. Film quality must be substantially raised, output must steadily increase, shaping a multi-type, multi-variety and diverse creation and production setup, guaranteeing the presentation of a number of excellent products and masterpieces close to reality, close to life, close to the masses every year.

5. Clearly expanding of comprehensive industry benefits. The domestic film market scale and share must continuously grow, spectator numbers and screening numbers must double, investment and production must positively circulate, film economy amount growth speed must reach more than 20% per year, and at the same time bring along corresponding industry development, derivative industry chains must clearly expand, the comprehensive effect must clearly increase, making the film industry into an important component part of our country’s service sector.

6. Pubic service skill must clearly increase. Strengthening rural and school digital cinema chain establishment, improving screening conditions, providing public service, guaranteeing that all administrative villages screen a film once per month, guaranteeing that every semester, two patriotic education films are screened for primary and secondary students.

7. International competitiveness must increase daily. Vigorously stimulating films to step out, fostering international film dissemination enterprises having international competitiveness and influence, developing domestic films adapted for international markets; through organizing public service-natured Chinese film exhibitions abroad, attending international film festivals and organizing commercial foreign promotion sale events, incessantly raising domestic films’ international influence, competitiveness and market share, incessantly strengthening State cultural soft power.

II. Main steps

(1) Vigorously making creation and production flourish.

At the same time as stabilizing and increasing amounts, even more prominently raising quality, facing the masses, facing the market, vigorously implementing the excellent products strategy, diligently producing more outstanding works. Carrying forward the main melody, advocating diversification, meticulously organizing production of focal films carrying forward ethnic spirits and the spirit of the times, eulogizing the true, good and beautiful,  castigating the false, evil and hideous, reflecting true life and the dominant role of the people, putting forth effort to strengthen the organic unification of ideological content, art content and enjoyability, fully giving rein to the vigorous function of film in aspects of inspiring spirits, strengthening confidence, joining forces, and stimulating harmony. Vigorously supporting feature film creation about reality, rural, ethnic minority and youth themes, vigorously stimulating production of cartoons, documentaries, educational films as well as products suited for new media form transmission such as networks, mobile telephones, etc., diligently shaping a multi-type, multi-variety and diverse film creation and production setup. Realistically strengthening industry base establishment for sectors such as television film production, cartoons, etc., vigorously stimulating intensification and scope increase development of film creation and production. Strengthening special film research and development. Further improving government awards, developing vigorous and healthy culture awards, diligently constructing a desirable creative environment. Establishing and perfecting government financial investment systems, continuing to implement systems such as excellent film products special fund, etc, making government funds having a larger effect in guiding creativity and making creativity flourish. Further implementing the requirements of the “State Council General Office Transferring the Ministry of Finance and Central Propaganda Committee Notice Concerning Some Economic Policies Further Supporting Cultural Undertaking Development” (NDC No. (2006)43), continuing to establish special excellent film product funds, to be used for supporting focal film shooting programmes in those localities. Fully using cultural industry development funds, enlarging support strength for film creation and production.

(2) Vigorously fostering new-type enterprises

Accelerating promotion of State-owned film work units to transform into enterprises and company system and share-holding system reform. Implementing the spirit of the “State Council General Office Notice Concerning Printing and Distribution of Two Regulations for Commercial Culture Undertakings Transforming into Enterprises and Supporting Cultural Enterprise Development in Cultural System Reform” (SCS No. 2008(114)) and other relevant documents, strengthening policy and financial support. Taking creative enterprises and brands as the core, taking raising film quality and market sales ability as the beginning, integrating film-making, distribution and screening resources, extending industry links, promoting interregional, intersectoral, inter-ownership system development, striving to foster and develop a batch of State-owned or State-controlled leading backbone enterprises, strengthening State-owned economy control strength and vitality. Accelerating the development of a batch of “specialized, excellent, special and new” small and mid-size enterprises. Encouraging social capital investment, vigorously developing film production enterprises of many different kinds of ownership system forms, within the scope authorized by laws and regulations reducing examination and approval segments, simplifying examination and approval procedures, optimizing examination and approval service. Granting equal treatment as State-owned film enterprises to non-public film enterprises in aspects such as investment approval, land use, fiscal policies, financial services, foreign trade, etc.

(3) Continuously expanding cinema chain operation scale.

Further deepening cinema chain system reform, vigorously developing interregional-scale cinema chains, special cinema chains and digital cinema chains. Vigorously exploring cinema chain operating rules, sales methods and management experiences, strengthening film screening ticket service system establishment and management nationwide, incessantly raising cinema operation service levels. Striving to develop mainstream cinema chain markets, vigorously developing second-tier city markets and community film markets, rural screening markets, vigorously developing markets such as mobile and multimedia screening such as film broadcast on television, home cinema screening, internet broadcast, mobile telephones, etc., accelerating formation of modern film market systems with swift transmission, wide coverage, on many levels. Further expanding State-owned film distribution and screening, diligently implementing regulations concerning that domestic annual film screening time may not be lower than two thirds of the complete screening time, realistically strengthening domestic film distribution and screening assessment and awards. Continuing to implement State film undertaking development programme fund systems, to be used for strengthening film sector macroeconomic regulation and stimulating domestic film distribution and screening.

(4) Vigorously supporting city and town digital cinema establishment.

Taking city and town digital cinema establishment and transformation into national economy and social development planning, into cultural sector development planning and overall spiritual civilization establishment schemes, and into general town and country construction and land use planning and emphasizing stimulus. Persisting in integration of government promotion and market operation, adopting many methods and steps such as credit, fiscal benefits, subsidies and awards, etc., strengthening city and county digital cinema establishment, encouraging all sorts of capital to invest in establishment of commercial cinemas and community cinemas. The State grants the necessary financial support to Central and Western regions’ mid-size and small cities and county town cinema establishment, all localities grant vigorous support to establishment programme selection, listing, obtaining land, investment, handling licences, etc. Where town or country digital cinema establishment uses State-owned land conform to general land use regulations and city planning, land provision support will be granted, of these, where there is only one interested land user, provision may be concluded in the way of an agreement according to the provisions of laws and regulations. Investors must use land for this special purpose, and may not change their intention for use.

(5) Encouraging policy support for enlargement of investments.

Encouraging financial organs to expand financial support strength to film enterprises. Vigorously guiding and encouraging financial organs to expand financial methods and make a set of financial services adapted to film industry development; for film enterprises conforming to credit conditions, financial organs shall reasonably determine credit limits and interest, raise service quality and efficiency. Supporting film enterprises meeting conditions to expand their scale and expand their strength through many financial methods such as distributing enterprise bonds, short-term financial bonds, mid-term bills and using bank loans, etc., and broadening their financial channels in many aspects. Vigorously stimulating State-owned and State-controlled film enterprises meeting conditions to reorganize and go on the market. Vigorously exploring establishment of film risk investment systems, all localities may utilize investment funds such as for small and middle enterprise establishment and development, etc., to support film risk investment, encouraging large-scale enterprises to invest in films through methods such as share purchasing, holding, etc., encouraging powerful enterprises and groups to initiate establishment of all sorts of film investment companies according to the law, diligently fostering strategic film area investors.

(6) Vigorously stimulating scientific innovation.

Encouraging development of film industry area basic, strategic and advanced new technology research and development and application, diligently constructing a film technology innovation system with enterprises at the core, the market as guidance, industry, academia and development in mutual coordination, encouraging film technology enterprises to develop film technology research and development and basic facility and equipment transformation. Implementing film digitalization development planning, vigorously expanding the function of digital technology in links such as film production, distribution, screening, storage, supervision, etc. Raising the State’s China Film digital film production basis’ operation and management level, shaping intensive production skills. Attracting, absorbing and assimilating international advanced technology, strengthening indigenous innovation, accelerating perfection of a digital film standard system conform to the requirements of our country’s film industry development, raising digital film equipment’s domestication level. Researching and developing digital film technology service systems, accelerating construction of a nationwide and provincial-level digital film service supervision platform, perfecting 0.8k digital film mobile screening, 1.3k and 2k digital film screening market services and technological supervision systems. Accelerating research and development of network real-time inspection and control system technology, perfecting digital distribution and reception systems. Firmly grasping implementation of stored films’ digitalization maintenance projects, accelerating digital film programme databases’ construction and use.

(7) Completely strengthening public service.

Vigorously implementing rural digital film screening projects. Vigorously fostering and developing rural cinema chain companies and rural film screening teams of many different kinds of ownership systems, disseminating digital mobile screening, localities meeting conditions may fully use town and country general cultural stations, village cultural rooms to establish fixed screening spots; establishing and perfecting public finance guarantee systems and public copyright film source guarantee systems, enlarging input, improving service, innovating systems, strengthening management, vigorously stimulating rural film screening standardization, systematization, sustainability; encouraging film enterprises to penetrate into town and country communities, factories and mines, schools, barracks and public squares, etc. to develop public screening activities. Vigorously advocating film distribution and screening enterprises to adopt many kinds of methods such as preferential ticket fees, etc., to satisfy the film-viewing needs of groups such as peasant workers, urban low-income workers, etc.; continuing to enlarge support strength for ethnic minority language film dubbing work, guaranteeing that ethnic minorities can well understand films. Bringing the viewing of patriotic education films into education planning for primary and secondary, and secondary-level vocational schools. Fees needed for rural compulsory education phase schools screening of patriotic films will be paid from public funds, fees needed for urban compulsory education phase schools film education will be brought into the scope of public expenditure.

(8) Diligently strengthening international influence.

Vigorously implementing films’ “stepping out” strategy, implementing preferential policies of the State encouraging and supporting cultural product and service export, through existing channels, enlarging film product and service export support strength, diligently shaping long-lasting systems. Accelerating fostering of foreign-selling market subjects, enlarging domestic film foreign sales strength, expanding channels, perfecting networks, exploring the establishment of domestic film foreign popularizing and sales systems, promoting domestic films to enter the international mainstream markets; supporting film enterprises, film products to participate in important international film festivals and trading markets, further organizing activities such as the “Shanghai International Film Festival”; promoting “China Film Channel”, etc., to adopt new media methods such as channel time cooperation, cable television network rent and the Internet, etc., to accelerate foreign landing pace, expand user scale; vigorously establishing broad friendly cooperation and popularizing systems with all nations’ governments, international film festival committees, film organs, social organizations, industry associations, etc., further strengthening foreign coproductions, continuing to organize activities such as the China Film Festival, diligently strengthening international influence.

(9) Incessantly perfecting supervision systems.

Firmly grasping promotion, establishment, completion and spurring of film industry development law, regulation and policy systems, focusing on moving film industry acceleration law formulation, promulgation and implementation forward, formulating and perfecting corresponding policy sets for deepening film reform. Accelerating planning and transfer work local administrative film management functions to be channelled to the proper authorities, striving to move forward all levels’ film entities further transforming functions, rationalize relations, optimize structures, raise efficiency, establishing administrative film management systems with unification of power and responsibility, reasonable work division, smooth implementation and strong supervision. Strictly implementing all management rules, strengthening market entry management, strictly guarding junctures such as project establishment, filing, examination, distribution, screening and broadcast, standardizing Internet film dissemination order. Realistically enlarging enforcement strength, integrating the application of methods of law, administration, economy and technology, etc., to strengthen supervision, counter all sorts and forms of illegal films, firmly attacking unlawful and criminal activities such as film smuggling, piracy, etc., protecting intellectual property rights related to film, standardizing screening activities, safeguarding market order. Integrating and standardizing film industry data statistics work, guaranteeing film market information completeness, accuracy, openness and transparency. Giving full rein to the function of organizations and groups such as film sector societies, specialist associations, etc., strengthening industry self-regulation, establishing desirable forms.

(10) Vigorously strengthening team establishment.

Creating conditions, perfecting steps, vigorously developing high-level film education and professional education, strengthening on-the-job staff study and training, and practice and exercise, diligently bringing up excellent talents that observe discipline and obey the law, love the country and respect their trade, proficient both in virtue and skill, with exquisite artistry, having a broad social influence, focusing in strengthening all sorts of professional team establishment, in creation, technology, operation, management, etc. Highly regarding young talent education and application, incessantly optimizing talent team structures. Highly regarding compound-type talents that both understand art and modern information technology, and the training of talents with outgoing personalities who both understand operation and management and have foreign language communication skills, and are well acquainted with international operation. Vigorously deepening personnel system reform, establishing and completing systems and mechanisms making excellent film talents to come to the fore.

III, Strengthening organizational guidance, earnest implementation.

All localities must, from the height of the overall situation, fully recognize the important meaning of film industry flourishing and development, and place promotion of film industry flourishing and development on the important task agenda, and bring it into the economic, social and cultural development plan of those localities, strengthen guidance, carefully deeply, perfect system formation, strengthen steps, moving film industry flourishing and development forward. They must, according to the objectives, tasks and requirements provided in this Opinion, integrated with the realities of those locations, grasp formulation of concrete implementation opinions, guaranteeing that they obtain actual effect. All relevant entities and work units must, according to function and work division, strengthen communication and consultation, act in close coordination, and formulate and perfect all policy steps and rule sets as soon as possible, and realistically strengthen guidance and supervision and inspection. All levels’ radio, film and television entities must realistically strengthen their responsibility consciousness, earnestly strive to concretely implement work, timely research new situations, and solve new problems

State Council General Office

21 January 2010



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