Companies that sell CD production equipment to Chinese companies found of making pirated CDs will be registered and will not be welcome in the Chinese CD industry, the State Press and Publication Administration (SPPA) has warned.

"China encourages investment in CD production. We welcome companies with good credit standings and advanced technology, but we oppose and will do our utmost to crack down on the smuggling of CDs, CD production lines and pirated CDs," said Wang Yanbin, a senior official with the SPPA.

Over the past 10 years, the production and sale of illegal CDs has become the biggest challenge to the development of China's CD industry. China has seized 137 illegal CD production lines since 1994, and almost all the equipment involved came from overseas companies.

Wang reiterated that the license system still prevails companies producing both read-only CDs and blank CDs in China. All localities and departments that apply for new CD production companies must get the approval and business license from the SPPA. The customs will allow the importation of production equipment according to the SPPA's approval.

Without the due procedures, all CD production lines are illegal, she said.

(Xinhua News Agency August 28, 2002)