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Publishing Sector to Be Opened Wider
Press and publications officials yesterday vowed to simplify the examination and approval procedures for foreign-funded printing companies.

An official with the General Administration of Press and Publications said: "The procedures will become simpler and more predictable and also take less time for foreign investors."

The administration and the Ministry of Foreign Trade and Economic Co-operation have decreed a new rule that includes specific procedures, standards and qualifications for setting up foreign-funded printing companies.

The rule has been made in accordance with China's membership of the World Trade Organization and a recent general decree on setting up printing firms.

In the past, the administration and the ministry - which are responsible for examining and approving foreign-funded printing firms - had little to which they could refer except some general principles on the regulation of the printing industry, which was called "the Administrative Regulation on the Printing Industry."

By the end of last year, China had approved about 2,000 foreign-funded printing companies, a very small proportion of the country's more than 150,000 printing firms.

But, due to a lack of detailed rules, some local governments took the liberty of randomly approving the establishment of foreign-funded printing firms.

China allows the setting-up of equity and contractual joint ventures to print publications, packaging and decorating materials and other materials.

However, wholly foreign-funded firms can only print packaging and decorating materials, according to the new rule.

Foreign-funded firms must have over 10 million yuan (US$1.21 million) in registered capital. Non-foreign-funded firms must have over 5 million yuan (US$603,800) in registered capital.

Foreign-funded printing firms will usually be granted a valid business term of no longer than 30 years but they can ask for an extension 180 days before the term is due to expire.

The firms must comply with the State plan on the number, structure and distribution of printing firms around the country.

Chinese-funded press and publications offices at provincial level must submit applications to the administration in 10 working days.

A decision is made on whether to approve the application within 30 working days.

Trade offices of provinces, autonomous regions and municipalities take charge of the examination and approval of foreign-funded printing firms with less than US$30 million in total investment and must make a decision in 30 working days.

(China Daily March 6, 2002)

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