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DECISIONS OF THE STATE COUNCIL ON THE NON-STATE-OWNED CAPITAL INVESTMENT IN THE CULTURAL INDUSTRY
 
(No. 10 [2005] of the State Council promulgated on April 13, 2005)
     
     
SUBJECT : CULTURAL INDUSTRY; NON-STATE-OWNED CAPITAL INVESTMENT
ISSUING DEPARTMENT : THE STATE COUNCIL OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 04/13/2005
IMPLEMENT DATE : 04/13/2005
LENGTH : 861 words
TEXT :
In order to make efforts to develop the socialist advanced culture, bring the initiatives of the whole society into full play in the cultural construction, further guide and regulate the entry of non-state-owned capital into the cultural industry and gradually form a cultural industry structure to keep public ownership as the mainstay and allow diverse forms of ownership to develop side by side, and enhance the whole strength and competitiveness of our cultural industry, we hereby notify the relevant issues as follows:


1. Encouraging and supporting the non-state-owned capital to enter into the following fields: cultural and artistic performance groups, performance sites, museums and exhibition halls, the business sites of internet access services, artistic education and trainings, the cultural and artistic agencies, the tourism and cultural services, culture and entertainment, business operation of artworks, flashes and net games, advertisement, the production and distribution of movies and TV plays, the development and application of broadcasting and filming techniques, cinema and online cinema, the projection of movies in rural areas, the retails of books and newspapers and audio-video products, packing, decoration and printing of prints.


2. Encouraging and supporting the non-state-owned capital to be involved in the export of cultural products and services.


3. Encouraging and supporting the non-state-owned capital to be involved in the reform of state-owned cultural entities such as cultural and artistic performance groups and performance sites to adopt a corporation system and the non-state-owned capital may be the controlling party.


4. Allowing the non-state-owned capital to involve in cultural industries and fields such as the printing of publications, the production of recordable CDs and the replication of CD-Rom.


5. The non-state-owned capital is allowed to make investment by means of purchasing shares of the state-owned cultural enterprises in the following fields: the printing and distribution of publications, the advertising and distribution of press and publication entities, the program production of broadcasting stations and television stations in aspects such as music, science and technology, sports and entertainment, the production, distribution and projection of movies. The state-owned capital shall hold 51% or more shares in the aforesaid cultural enterprises.


6. The non-state-capital may build and operate cable TV access network (AN), participate in the reconstruction of digitalization of the receiving terminal of cable TV. The state-owned capital shall hold 51% or more shares in the cultural enterprises that engage in the aforesaid business operations. The non-state-capital may hold shares in those enterprises that engage in part of the operation of the communities of the cable TV access network.


7. The non-state-owned capital may engage in the business operation of screen advertising in the open air, within buildings, vehicles and in the business quarters of shops and may provide the services of video on demand (VOD) of broadcasting and TV programs in the hotels and restaurants that meet the relevant requirements. The relevant departments shall strictly practice the accreditation of qualification, clarify the business scope and intensify daily supervision and control.


8. The entry of the non-state-owned capital into the cultural industry shall be subject to the administration according to the relevant current provisions. In particular, those matters prescribed in Articles 5, 6 and 7 shall be subject to the approval of the relevant administrative departments. The examination and approval for or verification of relevant investment projects shall be carried out according to the provisions of the Decision of the State Council on the Investment System Reform (No. 20[2004] of the State Council). We should strictly conduct the procedure for examination and approval, improve the measures for examination and approval, regulate the development of the cultural industry, protect the legal rights and interests of enterprises and suppress any unlawful or rule-breaking operation. Those non-state-ownership cultural enterprises shall enjoy the same treatment as the state-owned cultural enterprises in aspects such as project examination and approval, qualification accreditation and fund-raising.


9. The non-state-owned capital shall not:

(1) be used as investment in the establishment and operation of any press agency, newspaper agency, publishing house, broadcasting service (station), television service (station), the broadcast and TV transmission service (station), rebroadcast service (station), broadcasting and television satellite, satellite up-linking station and receiving station, micro-wave station, monitoring service (station), and the backbone network of cable TV transmission;

(2) make use of the information network to undertake business operations such as audio/video program services and news web-stations; shall not operate any newspaper page, frequency channel or program of broadcasting and television;

(3) engage in the export of cultural products such as books, movies, audio-video final products; and

(4) engage in any state-owned cultural relics museum.


10. The Ministry of Culture, the State Administration of Radio, Film and Television and the General Administration of Press and Publication shall, according to the present Decision, formulate specific measures for implementation, clarify the industrial catalogues of encouraging, allowing, restricting and prohibiting investment and guide over the non-state-ownership cultural enterprises to develop in a sustained, fast and sound manner.

All regions and departments shall straighten out and revise the provisions, if any, that conflict with the present Decision according to law. The entry of any foreign capital into the cultural industry shall be carried out according to the provisions of relevant laws and regulations.
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