State Council Report concerning the Cultural Industry Development Work Situation

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28 April 2010, 14th Meeting of the 11th National People’s Congress Standing Committee

Minister of Culture: Cai Wu

Committee head, all vice-Committee heads, secretary-general, all Committee members

I received the entrustment of the State Council, to report the cultural industry development work situation to the National People’s Congress Standing Committee, please deliberate it.

I, Work related to stimulating cultural industry development.

At present, a uniform opinion concerning the definition of cultural industries or sector definition as well as category standards have not yet formed internationally. The European Union and Japan name them “content industries”, the United Kingdom, Singapore and other countries call them “creative industries”, the United States call them “entertainment industries” or “copyright industries”, and Korea calls them “cultural industries”. Our country defines cultural industries as commercial industries engaging in the production of cultural products and the provision of cultural services. The “Outline of the National “11th Five Year Plan” Period Cultural Development Plan” lists 9 focus development cultural industry categories: the film production sector, the publishing sector, the distribution sector, the printing and reproduction sector, the advertising sector, the performing arts sector, the entertainment sector, the cultural exhibition sector, the digital content sector and the cartoon sector.

In recent years, the State Council and its subordinate organs have, at the same time as focusing on the development of public interest-type cultural undertakings, adopted many kinds of methods to promote the acceleration of our country’s cultural industry development. Mainly, the following work has been done:

(1) Promoting cultural construction theory innovation, establishing the cultural industries at an important position in cultural construction and economic and social development.

Since the 16th Party congress, the Party Centre and State Council have put forward a series of concrete guiding, focused and practical judgments and discussions in the area of cultural construction, have shaped new concepts concerning the orientation, objectives, lines of thinking, strategies and other aspects of cultural developments, and have raised the function and position of cultural construction as well as the cultural industries. The 16th Party Centre put forward: “In the present world, culture is blended into economics and politics, and its position and function in comprehensive national strength is becoming ever more prominent. The force of culture is deeply cast into the vitality, creativity and cohesion of the nation”, and that it as necessary to “vigorously develop cultural undertakings and cultural industries”. At the same time, it pointed out that: “cultural industries are an important channel for letting Socialist culture flourish and satisfy the popular masses’ spiritual culture needs under the circumstances of the market economy”, “developing all kinds of cultural undertakings and cultural industries must implement the requirements of developing advanced culture, and completely put social interests first. The 17th Party Congress stood on a new historical starting point, and determined the general distribution of the Socialist cause with Chinese characteristics with “an organic whole of four sides”: economic construction, political construction, cultural construction and social construction, produced the strategic deployment for completely constructing a relatively well-off society, issued an appeal to “promote the grand development and grand flourishing of Socialist culture” and “arouse a new high tide of Socialist culture construction”, clearly putting forward the necessity to vigorously develop public interest-type cultural undertakings, forcefully develop cultural industries, and let “the proportion that cultural industries occupy in the national economy clearly rise, international competitiveness clearly strengthen, cultural products adapted to the people’s needs become more rich and varied” be brought into the struggle objectives of completely constructing a relatively well-off society. In February of this year, General Secretary Hu Jintao gave an important speech at the provincial and ministerial-level main leading cadre discussion class on the topic of implementing the scientific development view and accelerating the transformation of economic development method in a class form, and make accelerating the development of the cultural industries into one of the eight focus work of accelerating economic development methods, requiring that accelerating the cultural industries, at the same time as focusing on developing public-interest cultural undertakings, persists in uniting economic interest with social interest, deepening cultural structural reform, accelerating public cultural service system construction, accelerating the development of commercial cultural industries, and accelerating the expansion of cultural markets. In March of this year, premier Wen Jiabao pit forward in the government work report of the 3rd Plenum of the 11th National People’s Congress that: “National development, the vitalization of the nation, not only requires strong economic strength, it also requires strong cultural strength. Culture is a nation’s spirit and soul, it is the decisive factor in a nation’s becoming truly powerful, and may deeply influence the development process of a country, and change a nation’s destiny. Without the development of advanced culture, there will be no rise of the cultural quality of the entire nation, and it will be impossible to truly realize modernization.”

(2) Deepening cultural structural reform, fostering cultural market subjects.

Cultural structural reform is the driver of cultural industry development. In June 2003, the Party Centre organized the cultural structural reform trial work conference. In December 2005, the Party Centre and the State Council made deployments, requiring, on the basis of the trials, a complete deepening of cultural structural, moving cultural undertaking work unit reform forward, deepening cultural industry reform, fostering modern cultural market systems as well as completing macro-level management structures, etc.

At present, the entire country in total has 123 State-owned culture and art theatres and groups in the culture system that transformed into enterprises, among which 69 transformed into enterprises in 2009, exceeding the total of the previous 6 years. In 2009, the China Eastern Song and Dance Troupe, the Ministry of Culture Cultural Market Development Centre and four other Ministry of Culture-subordinate undertaking work units transformed into enterprises, leading to a demonstration function, and promoting the broad and deep moving forward of reform into enterprises in the cultural system, and to expand to to a general level. The pace of film production, distribution and screening work units transforming into enterprises has accelerated, of the 24 film production studios that needed to transform, 22 have completed this, of the 29 provincial-level film companies that needed to transform, 26 have completed this. The China Television Drama Production Centre and 45 other television drama production work units have completed transformation into enterprises. In the entire country, 180.000 printing work units and 30 provincial-level Xinhua bookstore systems have completely transformed into enterprises, 580 book publishers, apart from the minority publishers that preserve the undertaking system, will completely transform into enterprises before the end of this year, and 1069 non-current affairs-type newspapers and periodical work units have transformed into or registered as enterprise legal persons.

At the same time, the State Council issued the “Some Decisions Concerning Non-Publicly Owned Capital Entering the Cultural Industries”, which created a good policy environment and fair competition opportunities for non-publicly owned cultural enterprises to develop. In 2005, the Ministry of Culture, Ministry of Finance, the previous Ministry of Personnel and the General Administration of Taxation jointly printed the “Opinions concerning Encouraging the Development of Private Culture and Art Performance Troupes”. In 2009, the Ministry of Culture issued the “Some Opinions Concerning Stimulating Private Culture and Art Performance Troupe Development”, further encouraging social capital to initiate private culture and art performance troupes. At present, it has been realized that areas such as performance, entertainment, artworks, network culture, cartoons and games, publications distribution, printing and reproduction, etc., are comprehensively opened up to domestic non-publicly owned capital along the entire process.

(3) Implementing the “Cultural Industry Promotion Plan” promoting cultural industries to become a strategic industry of the country.

During the global financial crisis, our country’s cultural industries have moved in the opposite direction and risen, which has been followed with high interest by the Party, the government as well as all walks of society. The Party Centre and the State Council leading comrades put forward, that we must make cultural industries into a new growth point to counteract the financial crisis, and we must let Chinese culture march towards the world, and display the outstanding culture of China to the world. Against this background, the State Council passed the “Cultural Industry Promotion Plan” in July of last year, symbolizing that the cultural industries have become a national strategic industry.

The “Cultural Industry Promotion Plan” requires to “at the same time as giving high regard to developing public interest culture undertakings, accelerating the vitalization of the cultural industries, fully giving rein to the important function of the cultural industries in adjusting structures, expanding international demand, increasing employment and promoting development. According to the spirit of the Centre to “maintain growth, expand internal demand, adjust structures, stimulate reform and benefit the people”, the “Cultural Industry Promotion Plan” clarified the guiding ideology, basic principles and objectives of cultural industry development, clarified eight important focus works: developing focus cultural industries, implementing major programme driving strategies, fostering backbone culture enterprises, accelerating the construction of cultural industry parks and bases, expanding cultural consumption, constructing modern culture market systems, developing burgeoning cultural business models and expanding foreign trade, put forward a series of policy measures and guarantee conditions of reducing entry barriers, expanding government input, implementing preferential tax policies, expanding financial support, strengthening organizational guidance, deepening cultural structural reform, fostering cultural industry talent and strengthening legislative work. The issuance and implementation of the “Cultural Industry Promotion Plan” has greatly inspired the cultural industry world with the confidence and determination to react to the financial crisis and realize smooth development, and has brought about opportunities for cultural industries to move in the opposite direction and rise during the financial crisis, become strong and become large.

(4) Expanding policy support strength, striving to create a good development environment.

In 2006, the CCP Central Committee Secretariat and the State Council Secretariat issued the “Outline of the National “11th Five Year Plan” Period Cultural Development Plan”, this was the first national cultural development plan that was issued and implemented since the foundation of the new China. In 2008, the State Council Secretariat issued documents relating to commercial cultural undertaking enterprises transforming into enterprises and supporting cultural enterprises development, related policies involve State-owned cultural asset management, asset and land disposition, income distribution, social security, personnel dismissal arrangements, finance and taxation, legal person registration, industry and commerce management and other aspects. Relevant State Council-subordinate departments have also independently or jointly rolled out a series of policy documents supporting cultural industry development.

In the aspect of financial support, the central financial administration established a “Special Fund to Support Cultural Industry Development”. Nationwide, there are 26 provinces (regions, municipalities) that have established special cultural industry development funds, provincial-level financial input is about 2.5 billion Yuan. Jiangsu, Shanghai, Tianjin, Shaanxi and 10 other provinces and cities have or are in the process of grasping the establishment of cultural industry investment funds or investment companies. At present, relevant departments are currently vigorously and comprehensively planning the establishment of a China cultural industry investment fund.

In the aspect of taxation, in order to stimulate cultural industry development, the State has granted a lower value-added tax rate to the publishing industry, after-payment tax rebate of publications’ value added tax, county-level or lower Xinhua bookstores are exempt from value added tax and other preferential tax policies. Cartoon and film enterprises also enjoy a State mitigation of value-added tax, business tax and other preferential policies.

In the aspect of financial support, propaganda, finance, the People’s Banks, culture, radio and television, press and publications and other departments have jointly formulated the “Guiding Opinions Concerning Financial Support for Cultural Industry Vitalization, Development and Flourishing”. The Ministry of Culture, the State Administration of Radio, Film and Television, the General Administration of Press and Publications and other departments  have respectively concluded cooperation agreements with the Bank of China, the China Industrial and Commercial Bank, the China Agricultural Bank and the China Exim Bank and other financial institutions, creating convenient conditions for enterprises to borrow money from banks. The banking sector has incessantly rolled out financial innovations aimed at the cultural industries, banks have been attracted to issue a programme loan of 50 million Yuan to the film “Assembly” with the box office income as pledge; the China Construction Bank Shenzhen Branch has resolved the problem that the credit pledges of cultural enterprises in the Shenzhen Dafen Oil Painting village were insufficient through “mutual lending guarantees”, the Beijing Bank and Communications Bank Beijing Branch have opened green lending channels for cultural industries, and rolled out intangible asset pledge trials. The Securities and Exchange Commission and other financial supervision and management organs encourage and support to fully utilize many kinds of funding channels such as going on the market for funds, distributing enterprises bonds, attracting strategic foreign investors, etc,. under the condition that it is permitted by State policies. At present, there are 18 cultural enterprises listed on the A-share list, the start-up list and the H-share market list.

II, The basic situation of cultural industry development.

Following the incessant deepening of cultural structural reform and the incessant strengthening of the popular masses’ spiritual culture needs, our country’s cultural industry has already entered a new phase of rapid development from a preliminary phase of exploration, start-up and fostering, and a new picture full of vigour and vitality has emerged.

(1) Rapid cultural industry development, swift development of burgeoning business models.

According to statistics, since the year 2004, our country’s cultural industry’s annual growth rate is higher than 15%, which is six percentage points higher that the growth rate of the national economy during the same period, and an outlook of high-speed growth has been maintained. During 2008 and 2009, when facing the attack by the financial crisis, cultural industries have risen contrary to trends, its consumption was lowered, its pollution was lowered, added value gained a further prominent and high-level superiority, creating a warm current in the hard economic winter. In 2008, nationwide cultural departments’ art performance troupe income was 8.03 billion Yuan, 16% higher than in 2007. The nationwide radio, film and television income was 135.06 billion Yuan, 18% higher than in 2007. In the first half of 2009, our country’s cultural industries grew by 17%, greatly exceeding the growth rate of domestic production values and tertiary industries. In 2009, 456 feature films were produced domestically, urban cinema ticket income was 6.2 billion Yuan, a comparative growth of 40%. The total output value of the press and publications sector broke through 1 trillion Yuan, a comparative growth of 20%. Among those, the total print quantity of daily newspapers was 44 billion, the scale of publishing has had the first position worldwide for nine years running; annual book publishing was 275700 titles, total sales value 145.6 billion Yuan, the publication variety and sales value is second in the world; the total output value of printed products is 574.6 billion Yuan. Generally speaking, the cultural industries’ growth momentum is strong, its rate of contribution to the national economy incessantly rises, and its stimulating function becomes more prominent every day.

Following the development of network, digital and information technology, cartoon gaming, digital music, digital film, network audiovisuals, mobile multimedia radio and television, public audiovisual carriers, digital publishing, network publishing, mobile telephone publishing and other burgeoning cultural industries have abruptly risen swiftly, and have broadened the territory of the cultural industries. In 2009, the nationwide cartoon creation and production quantity was 322 films and 170.000 minutes, an increase of 31% over 2008, the originally created cartoon “little sheep and the grey wolf” had a box office income of 100 million Yuan, and has broken the box office record for domestically-produced cartoon films; the scale of the network gaming market is 25.8 billion Yuan, an increase of 39,5% over 2008; the total output value of digital publishing was 75 billion Yuan, an annual increase of more than 50%; the sales amount of domestically-produced electronic books and electronic readers was 716.000, carrying more than 30 million volumes, the total sales value exceeded 2.5 billion; the network audiovisual market scale was 583 million Yuan, there were 240 million audiovisual network users; our country’s indigenously innovated mobile multimedia radio and television obtained breakthrough progress, there are 2000 urban mainstream commercial digital film screens, rural digitized film screening has been completely spread out.

(2) Cultural industries have become a new shining point for local economic development, and their function in accelerating the transformation of economic development methods becomes more prominent day by day.

At present, not a few local cultural industries have a growth speed that is higher than the overall growth speed of the national economy, and have become important sectors in providing employment opportunities, rising sun sectors in industrial structure optimization and pillar industries for economic growth, and have made vigorous contributions to stimulating local economic growth and accelerating the transformation of economic development methods. Beijing, Shanghai, Guangdong, Hunan, Yunnan and other provinces and cities’ cultural industries’ added value occupies a proportion in excess of 5% of GDP. The proportion of the cultural industries’ added value of Hunan province in GDP has grown from 1,4% in 1990 to 5,1% in 2008, cultural industries contributions to economic growth have risen from 2,3% in 2003 to 6,5% in 2007. In Yunnan province, the added value of cultural industries in 2008 was 30 billion Yuan, a proportion of 5.8% of GDP. In the recent five years, the added value of the cultural industries in Shenzhen grew by a speed of about 20% per year, occupying a proportion of 7% of GDP.

(3) Cultural products and services have become richer every day, cultural industries have become an important channel in satisfying the popular masses’ spiritual culture needs.

The rapid development of the cultural industries has mustered the vigour of the entire society in participating in cultural construction, has smashed the singular picture of State-organized culture during the planned economy system, and has shaped a multi-level and diversified cultural production and services structure. By 2008, there were nearly 10.000 culture and art performance troupes nationwide in total, 1305 performance management organs, 84356 cultural entertainment venues, 1969 county-level radio and television stations, 257 district-level and higher radio stations and 277 television stations, 2436 public broadcast programmes, 3199 public television programmes, 3343 of all sorts of radio and television programme production business organs, 34 mainstream cinema chains, 1545 intra-chain cinemas, 4097 screens, 1943 newspapers, 9821 periodicals, 580 book publishers, 378 audiovisual publishers, 240 electronic publishers, 120.000 publications distribution work units, and 180.000 printing work units. Following the daily increase of cultural market subjects, the quantity of cultural products and services has become richer, quality has been incessantly raised, the poplar masses’ diversified and multi-level culture needs have been further satisfied.

(4) The pace of cultural products and services’ “marching out” has incessantly accelerated, the influence of Chinese culture internationally rises day by day..

In 2009, our country’s foreign commercial performance troupes were about 426 in number, performing 16373 times, realizing a performance income of 76,85 million Yuan. The overseas income of domestically-produced films was about 400 million US Dollars, the export of all sorts of television programmes exceeded 10.000 hours, with a foreign sales value of about 58.98 million US Dollars. Between January and November 2009, our country’s core cultural product export was 9.4 billion IS Dollars, book copyright export proportions dropped down from 9:1 in 2003 to 3.4:1 in 2009. The China as guest of honour activities at the Frankfurt International Book Fair were successfully organized, realizing a copyright export of 2417 titles.  Cultural enterprises with Tianchuang International Performing Arts Production And Exchange Co. Ltd., China International Television Company, Anhui Publishing Group Co. Ltd etc., as representative have accelerated the pace of “marching out”, and strengthened international influence.

(5) Cultural industry investment and cultural resource exploitation has continuously warmed up, cultural industry groups are incessantly formed.

Our country is an ancient civilization country having a history of 5000 years long, the historical cultural resources for developing the cultural industries are extremely rich, the potential to transform this resource superiority into industrial superiority is huge. The characteristic of high added values of the cultural industries has attracted the eyes of investors, large amounts of capital and human resources have poured into the cultural sphere, cultural industries have become a new hot point for the pursuit of social capital. For example, the Shenzhen Strong China Group with electronic production and electronic markets as guidance, has invested in the cultural industries in great scale, becoming a new talent in our domestic cultural theme parks. The chemical enterprise Guangxi Vinylon Group Co. Ltd., has already become one of the four large pillars for the cultural industry, and the cinema chain companies under their flag have 400 cinema screens, and their cinema chains’ box office income was first nationwide in 2009.

Following the large-scale entry of social capital and the strengthening of government support strength, many cultural industry parks have been continuously constructed and put into use, cultural industry consolidation development tendencies become clearer every day. In Beijing Municipality, there are already 21 cultural industry group areas with more than 8000 cultural enterprises. In Shanghai municipality, there are 75 cultural industry parks, concentrating more than 2500 cultural enterprises and more than 20.000 high-level creative talents. In Jiangsu Province, more than 60 cultural industry parks have been built or are being built. The Ministry of Culture and the Beijing Municipality and Tianjin municipality have respectively jointly sponsored the China Cartoon and Game City and the China Comprehensive Cartoon Industry Demonstration Park, which have officially opened, the China Digital Film Production Base construction programme is being implemented smoothly, the General Administration moved the construction of the Changjiang Digital Publishing Base forward together with Shanghai municipality, and constructed the Northern New Region Digital Publishing Base together with Chongqing municipality, which forcefully promoted the rapid development of our country’s cultural industries.

(6) The pace of social capital entering has accelerated, the diversification of cultural industry investment is beginning to be formed.

Following the incessant deepening of structural cultural reform, State-owned cultural markets have progressively increased, becoming main forces developing the cultural industries. The China Foreign Culture Group Co., the Shanghai Performing Arts (Group) Co. Ltd., the Jiangsu Performing Arts Group Co. Ltd., the China Film Group Co., the China International Television General Company, the China Publishing Group Co., the Jiangsu Phoenix Publishing Media Group Co, the Northern Publishing Media (Group) Co. Ltd and a number of other State-owned or State controlled cultural enterprises’ comprehensive strength has incessantly strengthened.

At present, there are nearly 7000 people-run culture and art performance troupes nationwide, more than 2800 people-run television programme production enterprises, more than 400 people-run film production and distribution companies, 8 people-run publications chain business enterprises with a national scope, 110.000 people-run publications distribution enterprises, more than 40 Sino-foreign joint venture, cooperative or foreign-invested book and periodical distribution enterprises, more than 2500 printing enterprises, more than 50 periodical copyright cooperations and more than 600 Sino-foreign book cooperated books per year. The Shanghai Magnificent Network Development Co. Ltd., the Shenzhen Strong China Cultural Science and Technology Group, the Huayi Brothers Media Company and a batch of other people-run cultural enterprises have become fresh troops for cultural industry development, and a cultural industry structure with public ownership at the core, jointly developing many kinds of ownership is currently being formed.

III, The problems presently existing in cultural industry development

At present, there still are a number of problems and difficulties in cultural industry development These are concretely reflected in:

(1) Cultural industry quantities are still insufficiently large, levels are still insufficiently high.

Following the rapid development of our country’s economy, the spiritual culture needs of the popular masse have presented a rapid growth tendency, especially following the rise of cultural levels and the increase of leisure time, the popular masses’ requirements of cultural products and services have become more diversified. In comparison, the contradictions of imbalanced supply and demand and “structural deficits” in cultural products and services are prominent, “effective provision” is correspondingly insufficient, and there still is a certain difference between the popular masses’ daily increasing spiritual cultural life needs.

Although, in international society, unified cultural industry differentiation standards have not been formed, all countries’ cultural industry statistical standards are inconsistent, but it may still be observed that our country’s cultural industry quantities are insufficiently large, and levels are insufficiently high, the value that the cultural industry occupy in the overall national economy is still relatively small, not enough rein is given to the function of economic structure adjustment, and the contributions to and influence on the national economy are vastly lower than in the United States, Japan and other developed countries. Cultural industries must earnestly become pillar industries for the national economy and forceful steps remain to be taken and moved forward.

(2) Cultural industry concentration levels are not high, backbone enterprises and famous brands are lacking.

Because of a relatively late start and horizontal and vertical fragmentation in the cultural area, market barriers and other factors, our country’s cultural enterprises’ problems of “weakness, smallness, fragmentation and overflow” are relatively prominent, dissemination scales are relatively small, industrial scales and intensification levels are not high, industrial structures are not balanced, large-scale and high-level key enterprises with integrated industrial chains are few, strategic investors and backbone enterprises are lacking the cultural area. The indigenous innovation capacity of cultural enterprises is not high, core competitiveness is insufficient, intellectual property rights’ functions are not given full rein, enterprise creation, research and development and production levels are relatively low, excellent masterpieces with profound content, independent styles, novel forms and advanced technology and famous cultural brand are relatively low, capacity to participate in international competition remains to be raised.

(3) Policy and legal and regulatory systems are not complete, input and talent guarantees are not perfected.

In recent years, the State rolled out a series of policy measures to support and stimulate cultural industry development, but generally speaking, these are still insufficiently perfected. Cultural legislation is relatively weak, cultural industry development lacks strong legal system guarantees, industrial policy must still be further strengthened in focus and feasibility. A series of systemic and policy obstacles still exist in the administrative management of the cultural industries, industrial plans are unclear, industrial management is not standardized, and especially network culture and other burgeoning business models’ management still relies on traditional management experiences and models. The problem of piracy and infringement is still relatively prominent, intellectual property rights protection remains to be strengthened.

Although all levels’ financial input for cultural construction has been incessantly increased, because cultural construction expense base levels were low for a long time, foundations were weak, and basic conditions are bad, there still is a considerable difference between the growth of financial input and the requirements of cultural development, culture input quantities are still insufficiently clear, and basic conditions for cultural industry development are weak.

Creative talents, business management talents, technological exploitation talents, market sales talents and especially comprehensive high-level talents both understanding culture and understanding business are in short supply in the cultural industries, talent fostering and encouragement guarantee mechanisms remain to be strengthened. Cultural industry statistics work has only just begun, statistical standard systems are still being perfected, statistics work has not yet covered al work units engaging in the cultural industries. The blending between modern science and technology, and culture is ever closer, but the dynamism of traditional cultural industries’ using new technology is not strong, and there is insufficient vitality. Cultural industry standardization system construction is relatively backward, and has influenced the rise of industrial development levels and the expansion of scales.

(4) Cultural trade deficits are still relatively high, the pace of cultural industry “marching out” remains to be further accelerated.

In recent years, although our country’s cultural product and service export quantities have somewhat increased, but the phenomenon of cultural trade deficit has not basically changed, cultural product and service export channels are still relatively narrow, export values are fare lower than the import of similar sorts of products, the international competitiveness and dissemination strength of our country’s cultural products remains to be further raised. With performing arts products as an example: the differential between our country’s import and export of performing arts is 10:1 per performance, our country’s complete annual overseas commercial performance income is lower than 100 million US Dollars, which is lower than the overseas performance income of one foreign well-known circus troupe.

(5) The symptoms of blind development still exist to a certain extent, planning, guiding and control remains to be further strengthened.

At present, al localities’ enthusiasm to develop the cultural industries has surged, and they compete to start up large-scale cultural industry programmes, cultural industry parks and bases are spread over all localities, all sorts of capital successively enters the cultural industries. On the one hand, this has reflected the good expectations of all circles concerning cultural industry development, and is also an important precondition for accelerating cultural industry development, they have gained a vigorous promotion function in industrial development, but on the other hand, the problems of blind development, resource waste and homogenized competition has also emerged, and we must give this high regard. For example, there are dozens of cities nationwide that already started or are preparing the construction of large-scale cartoon theme parks or cultural theme parks; not a few scenic areas plan to start large-scale real-life performances; some cultural industry programmes engage in real estate development under the name of culture. if these tendencies are not timely planned, guided and controlled, it is quite possible that they influence the scientific development of the cultural industries.

IV, Accelerating the work planning for cultural industry development

In the present and future periods, the guiding ideology for accelerating cultural industry reform is: completely implementing the spirit of the 17th Party Congress, persisting in taking Deng Xiaoping Theory and the important “Three Represents” thought as guidance, implementing the scientific development view, consciously merging cultural industry development into the overall picture of transforming economic development methods, implement the “Cultural Promotion Plan”, persist in giving priority to social effect and unifying economic effect with social effect, deepening cultural structural reform, transforming development methods, optimizing industrial structures, fostering market subjects, moving industrial innovation forward, expanding cultural consumption, realizing that the cultural industries develop both rapidly and well.

The main objectives for cultural industry development are: cultural products and services to become richer and more varied, the Socialist core value system to be further carried forward, the spiritual cultural needs of the masses to be further satisfied; the development speed of the cultural industries to be clearly higher than the GDP growth rate, and its proportion in the national economy to progressively rise; cultural market subject vitality to clearly strengthen, cultural innovation capacity to clearly rise, shaping a batch of strong and powerful cultural enterprises and enterprise groups, cultural industry structures to become more optimized and distribution more rationalized; cultural product markets and factor markets to become more completed, cultural market order to become more standardized, cultural industry development guarantee systems to become more perfected; cultural product and service export values to clearly rise, the international influence and competitiveness of Chinese cultural products to clearly strengthen.

(1) Completely implementing the “Cultural Industry Promotion Plan”, researching and formulating cultural industry development plans for the 12th Five-Year Plan period.

Earnestly implementing the “Cultural Industry Promotion Plan“, vigorously moving cultural industry resource integration and structural adjustment forward, consolidating the desirable state of cultural industry growth opposed to other economic trends, achieving good structures, good distribution, good effects and sustainability, incessantly strengthening the cultural industries’ comprehensive strength and international competitiveness. According to the requirements of scientific development, bringing cultural industry development into general plans for economic and social development, establishing corresponding assessment, appraisal and responsibility systems, to become important contents for assessing regional development levels, balanced development qualities and leasing cadre work achievements. Further blending cultural industry development with the complete picture of transforming economic development, stimulating the transformation of economic development methods with cultural industry development.

Conducting supervision and inspection of the implementation situation of the “Outline of the National “11th Five Year Plan” Period Cultural Development Plan“, promoting the completion on time of major plans, focus projects and major programmes. Earnestly summarizing the successful experiences of cultural industry development from recent years, integrating the editing work of the economic and social development plan for the “12th Five-Year Plan” period, and researching the formulation of cultural industry development plans for the “12th Five-Year Plan”, raise the guiding, operative and restraining nature of plans. Guiding and promoting all localities to do research and editing work of cultural development plans in their localities well.

(2) Striving to move cultural structure reform forward, strengthening the micro-level vitality of the cultural industries.

With transforming into enterprises and remoulding market subjects as core segments, accelerating and moving forward the transformation into enterprises, mergers and reorganization of commercial press and publications work unit, accelerating the transformation into enterprises of film production, distribution and screening work units and culture and art theatres and troupes, grasping the separation and reform of radio and television programme broadcast. Through transforming commercial cultural undertaking work units into cultural enterprises, establishing a real micro-level basis for cultural industry development. Striving to foster a batch of backbone cultural enterprises, strengthening the overall strength and international competitiveness of our country’s cultural industries. Persisting in government guidance, market operation, scientific planning and rational distribution, selecting a batch of cultural enterprises or enterprise groups with good long-term perspectives and strong competitiveness from focus cultural industries and expanding policy support strength, fostering a batch of backbone cultural enterprises and strategic investors.  Breaking through sector monopolies and regional barriers, promoting cross-region, cross-sector, cross-media and cross-ownership system alliances, mergers and reorganizations, expanding enterprise scales, raising intensified commerce levels, stimulating the resource integration and restructuring in the cultural sphere. Encouraging the coordinated development of many categories of cultural enterprises in many kinds of ownership systems, implementing State regulations relating to non-public capital and foreign investment attraction into the cultural industries, vigorously attracting social capital to enter into cultural creation, film and television production, performing arts and entertainment, cartoons, printing, publications retail and other areas, progressively realizing a cultural industry structure with shareholding enterprises at the core, State-owned enterprises as backbones, people-run enterprises as backing, which are mutual supporting and supplementing, that is brimming with vitality.

(3) Strengthening cultural industry park and base construction and management, giving rein to the driving function of major programmes.

Strengthening comprehensive planning of cultural industry park and base construction, persisting in standards, making characteristics prominent, raising levels, stimulating rational resource allocation and industrial division of work, preventing overly rushing into action and blind construction. In a selective manner establishing and perfecting some demonstration bases unifying concentration of creation, research and development, industry incubation, product trade and talent training, providing technology, information, trade and exhibition platforms to cultural enterprises, creating conditions and establishing a basis for cultural industry upscaling, intensification and specialized development, , raising industrial concentration levels and innovation capacities. Granting support to parks and bases that conform to planning in aspects such as infrastructure construction, land use, taxation policies, etc. Establishing a batch of cultural demonstration bases for cultural creation, film production, publishing and distribution, printing and reproduction, performance and entertainment, cartoons, etc., supporting and accelerating the development of cultural industry bodies having local or ethnic characteristics, establishing a batch of public service platforms providing services in research, development and design, information and consultancy, production, cooperation and trade, etc.

Developing focus cultural enterprises, implementing major programme driving strategies. With performance and entertainment, film and television production, publishing and distribution, cultural exhibitions, network culture, digital content, cartoons and other industries as focus points, expanding support strength, realizing leapfrogging development. With cultural enterprises as subjects, fully mustering forces from all aspects of society, accelerating, an organizing a batch of major projects and focus programmes with high maturity, good growth prospects, a guiding and demonstration nature and an industry driving function, moving   the Chinese Cartoon and Gaming City, the second phase of the National China Film Digital Production Base construction project, the national “Knowledge Resource Database”  publishing project and other major cultural industry programmes forward.

(4) Expanding government input and financial support, strengthening the aftereffects of industry development.

Central and all local levels’ People’s Governments are to expand input into the cultural industries, and through methods such as lending discounts, programme subsidies and supplementary funding etc., support national-level cultural industry base construction, supporting cultural industry focus programme and cross-regional integration, supporting the shareholding transformation of State-owned and controlled cultural enterprises, supporting cultural industry infrastructure construction, supporting research and development of new products and new technologies. Substantially expanding the scale of the central financial administration’s “special fund supporting cultural industry development”, incessantly expanding support strength. Implementing the “Guiding Opinions Concerning Financial Support for Cultural Industry Vitalization, Development and Flourishing”, launching credit products adapted to the characteristics of the cultural industries, expanding effective credit granting, perfecting credit extension models, rationally determining lending periods and rates, encouraging and guiding cultural enterprises to face capital markets for funding, expanding the direct funding scope of cultural enterprises, stimulating the linking of financial capital, social capital and cultural resources, establishing and perfecting cultural asset appraisal systems, giving rein to the function of cultural asset trading. Establishing a China cultural industry investment fund, to be funded and guided by the central financial administration, attracting State-owned backbone culture enterprises, large-scale State-owned enterprises and financial organs to subscribe, and through methods such as share investment, promote resource reorganization and structural adjustment.

(5) Strengthening all basic works, providing strong support for industrial development.

Accelerating the progress of cultural industry legislation, setting hands to drafting the “Cultural Industry Stimulation Law”, promoting and as quickly as possible rolling out the “Film Industry Stimulation Law”, providing legal system guarantees for cultural industry development. Accelerating and perfecting the formulation of financial, funding, taxation, land and other policy measures to support cultural industry development. Strengthening cultural industry statistics work, formulating industry investment guiding catalogues, strengthening the promotion of cultural industry standardization system construction.

Further transforming government function, establishing macro-level management structures adapted to the requirements of cultural industry development. Further rationalizing management structures for burgeoning cultural business models. Integrating administrative and law enforcement resources, establishing uniform and high-efficiency comprehensive cultural market law enforcement organs, raising management capacity, expanding “sweeping pornography and striking illegality” and copyright law enforcement work strength, according to the law investigating, prosecuting and punishing illegal business activities destroying cultural market order, purifying cultural markets, safeguarding honest, fair, competitive and orderly market orders. Fully giving rein to the function of cultural offices (groups) at embassies and consulates abroad, overseas Chinese cultural centres and other cultural organs abroad, vigorously assisting cultural enterprises to expand into overseas markets, building platforms and channels  leading to international markets.

Fostering cultural industry talents, striving to strengthen the fostering of leading personalities and all sorts of specialized talents. Establishing and completing professional training and continuous education, fostering high-end comprehensive talents who understand culture, are good at creation and can do business, and all sorts of operational, technical and applied talents. Perfecting cultural industry talent job title appraisal systems, perfecting fair competition and allocation incentive mechanisms, encouraging and supporting excellent top-notch talents to come to the fore. Attracting talents from finance, funding, science and technology and other areas to enter into cultural industry areas, paying attention to attracting overseas cultural creation, research, development, management and other high-end talents, providing strong talent guarantees for cultural industry development. Guiding  the function of building nationwide and regional cultural industry sector organizations, giving rein to the function of sector organizations.

(6) Establishing modern cultural market systems, giving rein to the basic function or market mechanisms.

Establishing and completing cultural product markets and cultural factor markets with complete categories, stimulating the rational circulation of cultural products and production factors, fully giving rein to the basic function of markets in the process of resource allocation. Striving to build cultural dissemination systems with fast transmission and broad coverage, in performance, film, television, books and other areas, forcefully developing uniform delivery and chain operation, fostering a batch of nationwide and regional cultural product circulation enterprises with strong radiance, constructing some regional cultural product circulation centres radiation across the entire country, reducing circulation segments, lowering trade costs. Developing culture and art performance venue chains, covering main urban performance venues, supporting national culture ticketing network construction, Moving cable television network integration forward, building national-level cable television network companies. Moving cinema chain cross-regional integration as well as digital cinema construction and transformation forward. Supporting State-owned publishing and distribution enterprises to merge and reorganize across regions, supporting rural publication markets and chain network point construction, establishing press and publication industry circulation networks linking up town and country. Developing cultural intermediary organs.

(7) Expanding cultural consumption, driving internal cultural demand.

Incessantly adapting to the new changes in urban and rural consumption structures and new aesthetic, entertainment and leisure requirements, innovating cultural products and services, fostering new consumption hotspots. Strengthening original creation, forging famous cultural brands having core competitiveness. Striving to lower costs, perfecting circulation networks, expanding dissemination coverage, providing rich and varied cultural products and services at reasonable prices. Supporting constructing and transforming cinema chains, theatres and other cultural consumption infrastructure, creating the necessary material conditions for cultural consumptions. Guiding individualized, trendy and branded consumption, stimulating the cultural consumption during festivals, holidays and exhibitions. Promoting cultural industries to develop together with tourism, upgrading tourism with culture, dissemination culture with tourism. Stimulating the integration of culture with commerce, telecommunications, exhibitions, education and training, fitness, leisure and other sectors, stimulating service-type constructions, driving corresponding industrial development. Forcefully developing two-dimensional design, external design and other artistic creation and design industries, promoting further integration of cultural elements into light industry, textiles and other manufacturing industries, raising the cultural content and aesthetic effect of manufacturing industries, stimulating the production of derived products of cultural creation, expanding and promoting the consumption of furnishings, home electronics, home textiles, home decoration, etc.

(8) Strengthening science and technology support, promoting cultural industry upgrading.

Fully giving rein to the support function of science and technology in cultural industry development, utilizing digital, network and other high and new technology to stimulate cultural creation, cartoons, digital and three-dimensional films, digital publications and other burgeoning cultural business model development. Developing network culture, mobile multimedia radio and television, exploiting mobile cultural information services, digital entertainment product and other trades, providing content service to all sorts of handheld display terminals. Accelerating radio and television digitization and film screening digitization progress. Raising informatization levels, formulating and perfecting network standards, promoting information technology innovation and application, stimulating linking, interaction and resource sharing, moving the three-network construction forward of broadband telecommunications networks, digital television networks and next-generation Internet. Developing paper reading materials, electronic books, mobile phone newspapers and network publications and other burgeoning press and publications business models. Developing high and new technology printing. Strengthening core technology research and development, utilizing high and new technology to transform and upgrade traditional performance, entertainment, film and other facilities and technology

(9) Expanding foreign-oriented cultural trade, promoting Chinese culture to march towards the world.

Implementing preferential policies encouraging and supporting cultural product and service export, giving support in market expansion, technology innovation, customs clearance and other aspects. Forcefully supporting music, dance and acrobatics, exhibition, radio, film and television, publications, cartoons, gaming and other product and service export having ethnic characteristics, forging a batch of internationally famous cultural brands. Encouraging cultural enterprises to set up entities and establish branch offices abroad through exclusive investment, joint ventures, share control, share participation and other methods, realizing localized operations of cultural enterprises abroad. Organizing the China (Shenzhen) International Cultural Industry Expo, the China International Radio, Film and Television Expo, the Beijing International Book Expo and other focus cultural exhibitions, supporting cultural enterprises to participate in foreign art festivals, film and television festivals, book exhibitions and other international cultural exhibitions and activities.

Committee head, all vice-Committee heads, secretary-general, all Committee members, under the conditions of the Socialist market economy, cultural construction is both an important component part of the Socialist spiritual civilization construction, and an important component part of economic construction. Because of this, we must abide by the objective rules of cultural development, adapt to the objective requirements of the Socialist market economy, persist in the line of thinking of two-wheeled drive, and flying with both wings of cultural undertakings and cultural industries. Cultural undertaking development must persist in the principle of “government in the lead, public finance as support, public interest cultural undertaking work units as backbones, grass-roots as focus point, encouraging vigorous participation of the entire society, and innovating public cultural service systems”, building public culture service systems covering town and country, realizing the public interest, fairness, basic nature and convenience, satisfying the popular masses’ basic cultural needs by guaranteeing the popular masses’ basic cultural rights and interests. Cultural industry development must therefore persist in giving rein to the basic function of markets in resource allocation, according to the requirements of “innovating systems, transforming mechanisms, facing the market, strengthening vitality”, persisting structural and mechanism reform and innovation, raising the overall strength and international competitiveness of cultural industries, and strive to satisfy the popular masses’ cultural consumption needs that are more diversified, exist at more levels and in more aspects every day. Regardless of whether it concerns cultural undertakings or cultural industries, we must always persist in the orientation of advanced Socialist culture, persisting in giving preference to social effect, and strive to realize the uniting of social effect and economic effect.

The National People’s Congress Standing Committee listened to and debated the report concerning the situation of cultural industry development work, reflected a concern and support for cultural construction and will certainly forcefully move our country’s cultural industry development forward. We will earnestly research and implement the opinions and suggestions of the leading comrades and all committee members of the National People’s Congress Standing Committee, incessantly improve work, and strive to promote our country’s cultural industries to develop both well and rapidly.


文化部部长 蔡 武



2 thoughts on “State Council Report concerning the Cultural Industry Development Work Situation

    Updates 11 May | China Copyright and Media said:
    May 11, 2012 at 9:43 am

    […] State Council Report concerning the Cultural Industry Development Work Situation (2010) […]

    […] 426 foreign performing troupes or companies performed 16373 times in China, realizing an income of RMB 76.85 million yuan. However, the differential between the value of China’s import and export of performing arts is […]

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