New SARFT Regulations Permit Limited Foreign Investment in China's Film and Broadcast Television Sectors (story in Chinese)

March 7, 2005

The People's Daily reports that China's State Administration of Radio, Film, and Television has issued two regulations that are intended to allow increased foreign investment in China's domestic film and television broadcast market. The regulations, the "Interim Regulations for Qualifying for Authorization to Engage in Movie Enterprise Operations" and the "Interim Regulations on the Administration of Sino-Foreign Joint and Cooperative Ventures in Broadcast Television Program Production Operating Enterprises," (the People's Daily report mistakenly omitted the "Interim") took effect on November 28, 2004, and confirm that foreign enterprises may invest in Chinese film and television program production enterprises through joint venture and cooperative venture investment vehicles.

Consistent with the Chinese government's policy of controlling the type of current events information that Chinese citizens are allowed to access, article 6 of the "Interim Regulations on the Administration of Sino-Foreign Joint and Cooperative Ventures in Broadcast Television Program Production Operating Enterprises" requires that the Chinese partner retain at least 51% percent control of the enterprise. Moreover, article 12 of the regulations forbids Sino-foreign joint venture television production enterprises from producing news programs.