Entry into the Cultural Sector of Non-publicly Owned Capital Several Decisions

1. The entry of non-publicly owned capital into the following sectors is encouraged and supported: performing arts troupes, performance establishments, museums, exhibition halls, places of business that provide internet access services, art education and training, culture and art intermediaries, tourism and cultural services, culture and entertainment, dealing in works of art, animated and online games, advertising, motion picture and television drama production and distribution, broadcast, film and television technology development and application, movie theatres and cinema lines, film projection in rural areas, distribution of books, newspapers and periodicals, distribution of audio and video products, printing of packaging and printed materials, etc.

2. The entry of non-publicly owned capital into the export of cultural products and cultural services is encouraged and supported.

3. The participation of non-publicly owned capital in the restructuring of state-owned cultural work units, such as performing arts troupes, performance establishments, etc., into companies is encouraged and supported and non-publicly owned capital may take a controlling interest therein.

4. The entry of non-publicly owned capital into such cultural industries and sectors as the printing of publications, production of recordable optical discs, reproduction of read-only optical discs, etc. is permitted.

5. Non-publicly owned capital may be invested in or take an equity interest in state-owned cultural enterprises in the following sectors: printing and distribution of publications, advertising and distribution of news agencies, the production of music, science and technology, sports and entertainment programmes for radio and television stations and the production, distribution and projection of motion pictures. State-owned capital must have a controlling interest of at least 51% in the aforementioned cultural enterprises.

6. Non-publicly owned capital may be used to establish and operate cable television access networks and participate in the digitization of cable television receivers. State-owned capital must have a controlling interest of at least 51% in cultural enterprises engaging in the aforementioned businesses. Non-publicly owned capital may have a controlling interest in enterprises which engage in the community end of the business of a cable television access network.

7. Non-publicly owned capital may be used to engage in the business of display screen advertising outdoors, inside buildings, on means of transport, in shops, etc. and the provision of broadcast television video-on-demand services in qualified guest houses and hotels. The relevant departments shall be stringent in their certification of qualifications, expressly specify the scope of business and strengthen routine oversight thereof.

8. The entry into the cultural sector by non-publicly owned capital shall be administered in accordance with current relevant provisions. The items specified in Articles 5, 6 and 7 shall additionally require the approval of the competent administrative department. The examination and approval, or verification, of relevant investment projects shall be handled in accordance with the State Council, Reform of the Investment System Decision (ref. Guo Fa [2004] No.20). The examination and approval procedure shall be carried out stringently, examination and approval measures shall be improved, the development of the cultural sector regulated, the lawful rights and interests of enterprises protected and illegal operations closed down. Non-publicly owned cultural enterprises shall enjoy the same treatment as state-owned cultural enterprises in terms of project examination and approval, certification of qualifications, financing, etc.

9. Non-publicly owned capital may not be invested in the establishment and operation of news agencies, newspapers or periodicals, publishing houses, radio stations (sub-stations), television stations (sub-stations), radio and television transmitting stations (sub-stations), relay stations (sub-stations), radio and television satellites, satellite up-link stations and pickup stations, microwave stations, monitoring stations (sub-stations), trunk cable television transmission networks, etc.; may not utilize information networks to provide audio-visual programme services, news websites or other such services; may not operate newspaper or periodical pages, radio or television frequencies or channels, or time slots; may not engage in the import of such cultural products as books, newspapers and periodicals, films and television programmes or finished audio and video products; and may not be invested in state-owned historical museums.

10. The Ministry of Culture, the State Administration of Radio, Film and Television and the General Administration of Press and Publishing shall formulate specific implementing procedures pursuant to these Decisions, specify lists of sectors in which the state encourages, permits, restricts and prohibits investment and guide the continued rapid and healthy development of non-publicly owned cultural enterprises.

Local governments and departments shall screen and revise in accordance with the law provisions which conflict with these Decisions. The entry of foreign capital into the cultural sector shall be handled in accordance with relevant laws and regulations.