General Administration of Press and Publishing and Ministry of Foreign Trade and Economic Cooperation, Administration of Foreign-invested Books, Newspapers and Periodicals Distributors Measures

Issued: March 17 2003
Effective: May 1 2003 and December 1 2004 for the provisions concerning the establishment of foreign-invested books, newspapers and periodicals wholesaling enterprises.
Applicability: "Distribution business" means the retail and wholesaling of books, newspapers and periodicals. "Foreign-invested books, newspapers and periodicals distributors" refers to Sino-foreign equity or cooperative joint books, newspapers and periodicals distributors and wholly foreign-owned books, newspapers and periodicals distributors (Article 2).
These Measures apply to the establishment of books, newspapers and periodicals distributors by investors from Hong Kong, Macao and Taiwan (Article 17).

Main contents: The Measures state that foreign investors may purchase shares of or merge with domestic books, newspapers and periodicals distributors in order to establish a foreign-invested books, newspapers and periodicals distributor (Article 2). Foreign-invested books, newspapers and periodicals distributors may be set up as limited liability companies or companies limited by shares (Article 3). The Measures require that wholesaling distributors have no less than Rmb30 million in registered capital and retail distributors no less than Rmb5 million in registered capital. The maximum term of operation of both types of distributors is 30 years (Articles 7 and 8). Articles 9-14 detail the application Measures for establishment of a foreign-invested books, newspapers and periodicals distributor. Foreign-invested books, newspapers and periodicals distributors wishing to engage in online sale, chain business or book clubs shall carry out the examination and approval Measures with reference to Articles 7-14 of the Measures.
Related legislation: PRC Sino-foreign Equity Joint Venture Law (2nd Revision), Mar 15 2001, CLP 2001 No.3 p5; PRC Sino-foreign Cooperative Joint Venture Law (Revised), Oct 31 2000, CLP 2000 No.10 p4; PRC Wholly Foreign-owned Enterprise Law (Revised), Oct 31 2000, CLP 2000 No.10 p4 and Administration of Publishing Regulations, Dec 25 2001, CLP 2002 No.1 p15