China is expected to officially open up its book, newspaper and
magazine distribution market to overseas investment later this
year, high-ranking officials said on Tuesday.
Niu Bingjie, deputy director of the General Administration of Press
and Publications, said China plans to publish and implement new
regulations authorizing the entry of overseas investment into the
distribution market on the Chinese mainland during the first
quarter of this year.
"We will accept and handle applications from overseas investors" to
invest in the book, newspaper and magazine distribution sector once
the regulation goes into effect, Niu said in an interview with
Xinhua.
He
said overseas investors, including those from Hong Kong, Taiwan and
Macao, will be allowed to invest in the sector in Chongqing, Ningbo
and all provincial capitals on the Chinese mainland, in accordance
with its commitments as a member of the World Trade Organization
(WTO).
China approved the entry of overseas investment in Beijing,
Shanghai, Tianjin, Guangzhou, Dalian, Qingdao, and five special
economic zones in the southern part of the country "on a trial
basis" during its first year as a WTO member in compliance with its
WTO commitment to open the distribution market of books, newspapers
and magazines.
"China will follow the international practice of the majority of
WTO members to open up its book, newspaper and magazine
distribution market to overseas investors but will allow no
overseas investment in the editing sector," said the deputy
director.
"A
few of the 140 WTO members have pledged only limited access to
overseas investors in their respective editing sectors."
In
keeping with its WTO commitments, China should open its entire
book, newspaper and magazine wholesale and retail sector to
overseas investment during its third year of WTO membership and
should also lift all restrictions limiting the number of
overseas-funded distribution companies, geographic locations and
share-holding rights.
"The books, newspapers and magazines referred to above are
primarily those published on the Chinese mainland," said the deputy
director.
Over 60 overseas companies have set up offices on the Chinese
mainland with the intention of investing in the publication
distribution business, he said.
"Those who have cooperated closely with their Chinese counterparts
and who are familiar with the Chinese market are likely to be the
first to have their applications approved, since they have prepared
themselves (for entry)."
The open-up will bring both challenges and opportunities to the
Chinese domestic news and publication industry, said the deputy
director.
In
order to improve the market competitiveness of state-owned news and
publication businesses, he said China has set up a number of
state-owned distribution groups and has also launched reforms to
improve the operational mechanisms, labor and human resources
systems and to delegate more decision-making power to state-owned
news and publication businesses.
A
diversified investment and management pattern has developed over
the past several years, he said.
Private publication distribution businesses on the Chinese mainland
now number over 40,000, four times as many as their state-owned
competitors, while their market shares are about 50 percent when
textbooks are excluded from the state-owned sector's business.
To
create a better environment for investors from home and abroad,
China has revised its laws and regulations on copyright and
publications and has rectified irregularities in the publications
distribution sector.
Experts said the open-up of the publication distribution sector
will give Chinese readers more choices along with problems, and
relevant government departments should improve its regulations in
the sector according to law.
(Xinhua News Agency January 23, 2003)