PART 1

Film Industry

Picture 1 Structure of This Chapter

The Report on the Development of Global Film Industry(2019)released on August 29, 2019 pointed out that in recent years, the Chinese film indus try has developed rapidly. In 2018, the total number of Chinese movie screens reached 60079, an increase of 18% year-on-year. The growth rate of the number of screens has exceeded that of the box office (9%) and the number of moviegoers (6%) at the same time period. According to data from the China Film Administration, the total box offi ce nationwide in 2018 was RMB 60.976 billion yuan, and the number of moviegoers in urban theaters reached 1.716 billion.According to the Opinions on Accelerating the Construction of Movie Theaters to Promote the Prosperity and Development of the Film Market issued by the China Film Administration on December 11, 2018, China has become the world's second largest movie market, with the number of movie screens ranking first stably in the world, and the number of moviegoers constantly rising. According to the statistics of the “Endata” website (http://www.endata.com.cn), the cumulative box offi ce data for the quarter from September 13, 2019 to December 11, 2019 is RMB 15.0571 billion yuan and has exceeded the North American box offi ce in the latest quarter, which once again confi rms the value of the Chinese film industry.

The film industry is the largest industry in the field of culture and entertainment in terms of e conomic aggregates and attention, and it is also the regulatory focus of China's entertainment law. The entire process of a movie project from investment, project establishment, filming, examination to distribution, projection, import and export, and participation involves the following laws and policies:Copyright Law of the People's Republic of China(Order No.26 of the President)amended by Standing Committee of the National People's Congress on F ebruary 26, 2010,which came into force on April 1,2010,Film Industry Promotion Law of the People's Republic of China(Order No.54 of the President)issued by Standing Committee of the National People's Congress on November 7, 2016, which came into force on March 1,2017,Regulations on the Administration of Movies(Order No.342 of the State Council of the People's Republic of China ) issued by State Council on December 25,2001, which came into force on February 1,2002,Interim Provisions on Operation Qualification Access for Movie Enterprises(Order No.3 of the State Administration of Press, Publication, Radio, Film and Television) amended by the former State Administration of Press, Publication, Radio, Film and Television on August 28, 2015, which came into force at the same time, The Provisional Regulation on Investment in Cinemas by Foreign Investors (Order No. 3 of State Admission of Press, Publication, Film and Television), which was amended by the former State Admission of Press, Publication, Film and Television and took effect on August 28,2015,The Provisions on the Administration of Chinese-Foreign Cooperative Production of Films(Order No. 13 of the State Administration of Press, Publication, Radio, Film and Television) amended by the former State Administration of Press, Publication, Radio, Film and Television on December 11, 2017, which came into force at the same time,Provisions on the Archival Filing of Film Scripts (Abstracts)and the Administration of Films(Order No.13 of the State Administration of Press, Publication, Radio, Film and Television) amended by the former State Administration of Press, Publication, Radio, Film and Television on December 11, 2017, which came into force at the same time,Regulations on the Employment of Overseas Creator to Participate in the Production of Domestic Films(No.1451[2001]of the State Administration of Radio, Film and Television) issued by the State Administration of Radio,Film and Television (now reformed into the China Film Administration) on December 13, 2001, which came into force on January 1, 2002, etc. This chapter will focus on the relevant legal practices of the Chinese film industry.

The Chinese film industry includes the production, import, export, distribution, and projection of films such as feature films, documentary films, popular science films, animation, and special topic films. It also involves investment and financing, and copyright transactions. China applies a licensing system with respect to the production, import, export, distribution, and projection of movies and public projection of films. No entity or individual shall, without permission, be engaged in the activities of production, import, export, distribution or projection of films, nor shall it/he import, export, distribute or project the films for which the license has not been obtained.

China encourages legal persons and other organizations to make cross-border investments through Chinese-foreign cooperative production of films and other methods, and guarantees their reasonable use of foreign exchange for foreign trade, cross-border financing, and investment in accordance with the law.It is worth noting that the Special Administrative Measures (Negative List) for the Access of Foreign Investment (2019)canceled the rule that“movie theater construction and operation must be controlled by the Chinese”,and the“Notice by the State Council of Launching the Pilot Program for the Reform of ‘Separating Operating Permits from Business Licenses'in All Pilot Free Trade Zones”stipulates that in the free trade zone, the “Permit for Film Projection Business” for the approval of the establishment of film projection entities and the establishment of foreign-invested movie theaters shall implement the notification commitment. If the applicant promises that the conditions are met, an approval decision will be made on the spot after the formal examination. This means that under the Chinese entertainment law, the government will further open up the film market to the outside world.