China's burgeoning cultural industry needs an edge, say insiders.

"The industry has been left 10 or 20 years behind those of advanced countries in terms of marketing, opening and global competition," said Long Yongtu, secretary-general of the Bo’ao Forum for Asia.

He was speaking during a seminar at the first International Cultural Industry Fair Shenzhen, which closes today.

Foreign capital, technology and management should be introduced to speed up globalization of the industry, he advised. "Joint ventures and foreign cooperation should be encouraged as long as the Chinese side holds a controlling stake in the beginning.”

He also said the industry, especially film production, could learn from the processing industry in the early 1980s, which sought to attract foreign capital, technology and management while exporting finished products.

But the content should come from Chinese culture, he stressed.

"It's a good way to solve the problem of fund shortages for filmmaking in China, a shortcut to global markets with the participation of world famous directors, actors or actresses and an easy way for foreigners to understand China," he noted.

China's culture has a long and brilliant history but is far from shaping a mature market and has been long closed to foreign investment.

Last year media, advertising, entertainment, publishing and tourism contributed less than 1 per cent to the country's gross domestic product (GDP). That number is expected to double in 2005 driven by growing demand and an improving business environment.

In Beijing alone, its contribution to GDP reached about 5 percent last year and in Shanghai 7 percent. However, this is tiny compared with the 20 percent experienced in developed countries.

While a number of big media groups are emerging around the country after a round of mergers, Long suggested they should sharpen their competitive edge and diversify content to take a bigger slice of the global market.

Jamie Davis, president of Star China, which has nine channels and is the most successful foreign television operator in the country, agreed with Long that TV producers could make more non-sensitive products such as entertainment programs, music and film to enrich content.

As a foreign player, he said its success lies in its indigenization strategy, which aims to use international ideas and concepts with content relevant to local people.

Yan Xiaopei, vice-mayor of Shenzhen, reiterated that culture will play a more important role in the city in improving its competitiveness and speeding up economic development.

It plans to lower barriers to market access, allowing more private and foreign capital into the cultural industry, she said.

(China Daily November 22, 2004)