State Administration of Radio, Film and Television and Ministry of Commerce, Business Access Qualifications for Film Enterprises Tentative Provisions

Promulgated: October 10 2004
Effective: November 10 2004
Interpreting authority: State Administration of Radio, Film and Television (SARFT) and Ministry of Commerce
Applicability: The Provisions apply to the administration of access qualifications for companies, enterprises and other economic organizations within China that engage in film production, distribution, exhibition, export and import businesses, as well as for companies, enterprises and other economic organizations from outside China that participate in film production and exhibition businesses (Article 2).
Matters not specified in the Provisions shall be handled in accordance with the Administration of Films Regulations and relevant provisions (Article 19).

Main contents: Domestic companies, enterprises and other economic organizations (excluding foreign-invested enterprises) are permitted to establish film production companies, or alternatively, establish Sino-foreign equity or cooperative film production joint ventures with companies, enterprises and other economic organizations outside China (hereafter, Foreign Party). The former requires registered capital of not less than Rmb1 million, and the latter not less than Rmb5 million and the proportion of foreign investment in registered capital shall not be more than 49% (Articles 5 and 6). Domestic companies, enterprises and other economic organizations (excluding foreign-invested enterprises) are permitted to establish film technology companies, or alternatively, establish Sino-foreign equity or cooperative film technology joint ventures with Foreign Parties, for the transformation of infrastructure and technical equipment for film production and exhibition. Both require registered capital of not less than Rmb5 million, and the latter restricts the proportion of foreign investment in registered capital to not more than 49% unless in provinces or cities approved by the state (Articles 8 and 9). Domestic companies, enterprises and other economic organizations (excluding foreign-invested enterprises) are encouraged to:

• establish film distribution companies specializing in domestically produced films, which require registered capital of not less than Rmb500,000;
• invest in existing cinema circuits or form a separate cinema circuit; and
• invest in construction and transformation of cinemas (encouraging individual investments as well) (Articles 10, 12 and 15).

Foreign investment in cinemas shall be administered in accordance with the Foreign Investment in Cinemas Tentative Provisions (Article 15). Film import business shall be engaged in exclusively by film import enterprises approved by SARFT. National distribution of imported films shall be carried out by distribution companies with the right to national distribution of imported films approved by SARFT (Article 16).
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; Administration of Films Regulations, Dec 25 2001, CLP 2002 No.1 p15 and Foreign Investment in Cinemas Tentative Provisions, Nov 25 2003, CLP 2004 No.1 p8
Repealed legislation: Access Qualifications for Film Production, Distribution and Exhibition Tentative Provisions and Qualification Certification System for Attainment of the Film Making Permit (a Single Film) Implementing Rules (Trial Implementation), 2001