Changes in China culture sector

The Chinese cultural sector and industries are undergoing some major changes to reflect the emergence of China and the important contribution of cultural activities to society and the economy. The Chinese government wants to reform the cultural system so that it can increase the internal demand/export, create more employments and push the social and economic development to a higher level.

Key policy changes are allowing corporation of government institutions, investments from private and foreign countries, mergers and acquisitions. The Chinese government also wants to build key industry players and make the cultural activities an important part of the economic strategic plan.

Since the announcement last September, the Chinese Communist Party central politburo has held 22 group studies on the reform of cultural system as at July 23, 2010. The Plan on Culture Industry Re-emergence covers a wide range of topics. It described the urgency of the reform, the importance of speeding up the reform and the culture sector serving as a counter balancing factor in economic development especially when the economy is slowing down.

The guiding thought is to make culture industry as a new GNP stimulator. However, the basic principal is to place social benefit as key consideration and aims to achieve both social and economic returns. There are 5 objectives: improving culture market conditions, culture industry structure, innovation capability, modernization, and exportation of cultural services and products.

The Plan also specifies 8 action plans:
1. To develop key culture industry sectors: e.g. innovations, movie and TN production, publication and distribution, advertising, performance, exhibition etc.
2. to position key projects as strategic movers: e.g. national digital movie base, multi-media, economic information platform, etc
3. To nurture major cultural corporations: e.g. government involvement, mergers and acquisitions, inter-regional co-operation or re-structure, etc
4. To speed up the development of cultural industrial parks and bases: e.g. regional centers for products exchange and distribution, incentives etc.
5. To expand the culture consumerism: e.g. branding, intellectual property rights, related industries (education training, health, tourism, leisure) development etc.
6. To establish modern culture industry market system: e.g. communication, national network, private involvement, etc.
7. To develop new culture industry activities: e.g. digital, mobile, new cinema, mobile performance, network etc.
8. To expand foreign trade on culture: export, market development, encouragement of joint venture, co-operation, holdings in foreign countries etc.

There are 5 policies to encourage the culture industry development:
1. Lowering the entry requirements.
2. Increasing government involvements.
3. Providing tax incentives.
4. Increasing financial supports.
5. Setting up China Culture Industry Investment Fund.

The last part of the Plan provides 4 assurances to the reform:
1. Strengthening organization leadership and making cultural activities as a key performance indicator.
2. Depending the cultural system reform and providing a creative and innovative environment
3. Training culture industry talents and attracting finance, IT, foreign and management professionals
4. Strengthening legislation and protecting intellectual property rights.