Five Sets of Regulations Effective from February 1

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Last updated at: (Beijing Time) Friday, February 01, 2002

Five Sets of Regulations Effective from February 1

The five sets of newly formulated or revised regulations: The Regulations on Film Management, the Regulations on Publications Management, the Regulations on the Management of Audio-Video Products, the Regulations on the Governance of Foreign-funded Financial Institutions and the Regulations on the Governance of Foreign-funded Insurance Companies become effective as of February 1. These five sets of regulations further clearly define the admission conditions and scope for China��s film, publication, audio-video and cultural markets as well as financial and insurance markets.

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The five sets of newly formulated or revised regulations: The Regulations on Film Management, the Regulations on Publications Management, the Regulations on the Management of Audio-Video Products, the Regulations on the Governance of Foreign-funded Financial Institutions and the Regulations on the Governance of Foreign-funded Insurance Companies become effective as of February 1. These five sets of regulations further clearly define the admission conditions and scope for China's film, publication, audio-video and cultural markets as well as financial and insurance markets.

Social Funds Can Be Used to Apply for "Admission Card" for Film Production

The newly revised regulations on Film Management stipulates that units outside film studios can independently engage in the film production business, but they shall report to the State Council radio, film and television administrative departments for approval and go through relevant registration procedures, with the instrument of ratification, at the administrative department for industry and commerce. The State encourages enterprises, institutions and other social organizations as well as individuals to participate in film production in the form of financial aid and investment.

The Regulations stipulates that the States allows enterprises, institutions and other social organizations as well as individuals to invest in the construction and renovation of cinemas and to construct and revamp cinemas in the form of Sino-foreign joint venture or Sino-foreign cooperative enterprise. Film producers, with approval from the State Council radio, film and television administrative department, may produce films in cooperation with foreign film producers; other units and individuals are not allowed to do so. The Regulations also stipulates that foreign organizations or individuals are not allowed to independently engage in film production within the territory of the People's Republic of China.

The Regulations clearly defines the amount of fine and scope in dealing with those who violate the stipulations of the Regulations, compared with the past, the newly revised Regulations makes it more convenient for operation.

The Business of Sales of Books, Newspapers and Periodicals Opens to Foreign-funded Enterprises

The newly revised Regulations on the Management of Publications stipulates: The State allows the establishment of Sino-foreign joint ventures, Sino-foreign cooperative enterprises and foreign-funded enterprises to engage in the business of selling books, newspapers and periodicals.

The determination of units for the publication, printing and distribution of middle and primary school textbooks shall be open and just. Middle and primary school textbooks shall be examined and approved by the education administrative department under the State Council or organized examination and approval, its publishing, printing and distribution units shall be determined in the form of bidding or other form of openness and justness by the publication administrative department and the education administrative department together with pricing department under the people's government at or above the provincial level. In addition, no other units or individuals are allowed to engage in the business of the publication, printing and distribution of middle and primary school textbooks.

The Regulations also intensifies punishment of publishers who sell the book number.

Pirating Acts to Be Given More Severe Punishment

According to the stipulation of the newly revised Regulations on the Management of Audio-Video products, illegal management of pirated products will have to pay a heavier price for this. The revised set of Regulations makes it easier for operation.

The cultural administrative department under the State Council works together with foreign economic and trade department to lay down stipulations on the concrete methods and steps related to Sino-foreign cooperative enterprises set up with State permission to engage in the business of the sales of audio-video products. Producers of such products may cooperate with the Hong Kong Special Administrative Region, the Macao Special Administrative Region, the Taiwan region or foreign organizations and individuals in producing audio-video products.

According to the stipulations of the Regulations, beginning from February 1, the playing of video tapes and the showing of other audio and video products will be gradually liquidated.

Foreign-funded Banks May Engage in Depositing and Loaning Business

The newly revised Regulations on the Governance of Foreign-funded Financial Institutions stipulates that foreign-funded financial institutions, on the premise of meeting the cautious admission conditions, may apply for setting up business institutions within the territory of China. wholly foreign-owned banks, branches of foreign banks and joint venture banks, in accordance with the business scope approved by the People's Bank of China, may partially or wholly manage the business of absorbing public savings deposits, and the issuance of short-, medium- and long-term loans.

The Regulations stipulates that for foreign-funded financial institutions to handle RMB business, they shall possess the following conditions: they shall have been in operation within China for three years and above before they file the application, they have been making profits for two consecutive years before filing the application, and other conditions stipulated by the People's Bank of China. The interest rates on savings deposits and loans as well as the rate of various service charges of foreign-funded financial institutions shall be determined in accordance with the relevant stipulations of the People's Bank of China.

The Regulations also relaxes restrictions on the Chinese cooperative partners with Sino-foreign joint venture banks or joint financial companies

"Foreign Insurance" Accession to the Chinese Market

The newly formulated Regulations on the Governance of Foreign-funded insurance companies, on the basis of the contents of the relevant promises China made for WTO membership, stipulates that foreign-funded insurance companies include Sino-foreign joint insurance companies, solely foreign-funded insurance companies and branches set up by foreign insurance companies in China. Foreign-funded insurance companies may wholly or partially manage, in accordance with law, the following types of insurance businesses: property insurance service, including property loss insurance, liability insurance, credit insurance and other insurance businesses; personal insurance business includes life insurance, health insurance, accidental injury insurance and other insurance businesses, it may, within the verified scope, manage large-scale commercial risk insurance business and omnibus clause insurance business. The one and the same foreign-funded insurance company is not allowed to concurrently manage the business of property insurance and personal insurance business.

By People's Daily Online

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