Private and foreign firms will premiere on China's big screens
next month, under new rules allowing them to invest more in the
domestic film industry.
And censors' controls on films and film scripts will also be
relaxed under new regulations issued by the State Administration of
Radio, Film and Television.
Starting from December 1, the administration will allow foreign
investors to buy minority shares in film production companies. The
changes are outlined in a provisional regulation on qualifications
for film production, distribution and projection issued last
month.
Foreign capital is also permitted in joint venture film
technology companies with Chinese firms. In certain provinces and
cities, with approval from the administration, foreign investors
can hold a majority share of such companies.
In addition, overseas investors will be allowed to become more
involved in cinemas, insiders said.
Under the changes, foreign investment could eventually account
for three-quarters of the capital invested in cinemas in China's
seven major cities, according to Guan Zhibing, manager of Capital
Cinema in Beijing.
Guan is now negotiating with several foreign investors to
transform the cinema into a complex with the most advanced
equipment.
The administration refused to confirm Guan's assertions. But it
said a new regulation on the issue is being drafted and would be
issued soon.
At present, foreign enterprises are only allowed to build
cinemas as minority shareholders in joint ventures or cooperative
businesses. They do not have the right to run and manage
cinemas.
But as competition intensifies, state-owned cinemas have run
short of the funds needed to upgrade their equipment and compete
with the new joint-venture cinema complexes.
Nan Deshan, manager of Dahua Global Media Cultural Development
Co, said that although Dahua Cinema in Beijing now has four
screens, it is still using a building from the 1930s, which does
not have enough parking.
"We welcome foreign capital into our cinemas, because this
investment will not only solve our shortage of funds, but also
bring advanced technology and management ideas,'' he said.
Dahua Cinema is yet to find potential foreign investors. But Nan
said the company running it and three other cinemas was trying to
find a way to reinvigorate state-owned cinemas.
"We are now trying to build up our own cinema networks and will
invest in film-making and TV plays if there are good stories,'' he
added.
The reforms in the movie industry are also good news for private
investors.
According to the new regulations, private investors will be
allowed to establish their own movie production companies and build
up their own cinema networks.
Non-state capital is already playing a more and more important
role in the country's movie and television industry.
Last year, non-state capital helped fund 29 of the 100 movies
produced. The number this year has surged to at least 60.
Zhang Hongsen, a senior official with the administration in
charge of the movie industry, was quoted by Guangzhou-based
Nanfang Daily as saying the administration was determined to
end some old restrictions on movie production and management, and
provide a freer environment for movie-makers.
The release of the new regulations is part of the
administration's move to encourage artists to make more excellent
movies, Zhang said.
For example, censorship rules on movies and movie scripts have
been eased and no longer force movie makers to wait for the
administration to approve the entire script.
Instead, they usually need to submit only the main idea of the
script in less than 1,000 words to the administration. The
exceptions are movies funded by the Chinese government, movies on
historical events or certain topics, and movies co-produced by
foreign film-makers.
(China Daily November 22, 2003)