Article1 These Provision are formulated to mobi1ize non-government sectors to accelerate the development of the movie industry, cultivate market players, regulate market access, increase the overall strength and competitiveness of the movie industry, boost the socialist movie industry and meet people's demands on their spiritual and cultural lives.

Article 2 These provisions shall apply to the administration of qualification access for domestic state-owned and non-state-owned enterprises to operate movie production, distribution and projection and for wholly foreign-owned companies to participate in the operation of movie production and projection.

Article 3 Domestic state-owned and non-state-owned (not including wholly foreign-owned ) entities are encouraged to establish movie production companies through joint venture or cooperation with existing state-owned movie production entities.
(1)Where a joint venture or cooperative (not including wholly foreign-owned) movie production company is to be established, it shall meet the following conditions before application:
1)The registered capital shall be no less than 1 million yuan; and
2)an app1ication letter, the contract, articles of association and photocopies of business licenses of parties to the cooperation issued by administrative departments for industry and commerce shall be submitted.
(2)Where a Sino--foreign joint venture or cooperative movie production company is to be established, it shall meet the following conditions before application:
1)the registered capital shall be no less than 5 million yuan;
2)the proportion of foreign investment in the registered capital shall not exceed 49 percent; and
3)An application letter, the contract, articles of association and photocopies of business licenses of parties to the cooperation issued by administrative departments for industry and commerce shall be submitted.(Foreign parties may provide financial records issued by accounting firms).
(3)Where a domestic state-owned or non-state-owned (not including wholly foreign owned)movie and television production entity that has not obtained the Permit for Movie Production independently establishes a movie production company, it shall meet the following conditions before application:
1)It shall, when shooting film for the first time , apply to obtain the Permit for Movie Production (for one film only). At the time of application, it shall submit to the State Administration of Radio, Film and Television a photocopy of the business license issued by administrative department for industry and commerce, the attestation of financial conditions, an outline of the film to be shot and other relevant documents. After it has obtained the Permit  for Movie Production (for one film only), it shall go through relevant formalities at administrative department for industry and commerce of its locality;
2)It has invested in shooting two or more films, each with the Permit for Movie Production (for one film only);
3)Its registered capital shall be no less than 1 million yuan; and
4)It shall submit an application letter, a photocopy of the business  license issued by administrative department for industry and commerce, permits for production (for one film only) and public projection of two films it has invested in and other relevant documents.
(4)To any one that meets the conditions prescribed in Items (1), (2)and (3), the State Administration of Radio, Film and Television shall issue the Permit for Movie Production. The applicant shall bring the approval certificate and the Permit for Movie Production issued by the State Administration of Radio, Film and Television to go through relevant formalities at the administrative department for industry and commerce of its locality.

Article 4 A movie production company that has obtained the Permit  for Movie Production in accordance with Article 3 of these Provisions shall enjoy the equal rights and obligations as those enjoyed by existing state-owned movie production entities in accordance with the Regulations on the Administrative of Movies.

Article 5 State-owned and non-state-owned (not including wholly foreign-owned) entities are encouraged to hold controlling shares in or to independently establish film technology companies, renovate infrastructure and equipment for movie production and projection. Wholly foreign-owned companies are allowed to hold shares in companies operating such as business, and are allowed to hold controlling shares in companies operating such business in designated provinces and cities. The application conditions and procedures are as follows:
(1)The registered capital shall be no less than 5 million yuan;
(2)Application letter, contract, articles of association and photocopy  of the business license of each party to the cooperation issued by the administrative department for industry and commerce shall be submitted.
(3) Where an applicant meets the aforementioned conditions and gets approval of the State Administration of Radio, Film and Television, it shall bring the approval documents issued by the State Administration of Radio, Film and Television to go through relevant approval formalities at the relevant government department.

Article 6 Where an entity engaging in the foreign-involved business as prescribed in Article 3 and Article 5 of these Provisions, it shall go through relevant formalities in accordance with relevant laws and regulations of the state in addition.

Article 7 State-owned and on-state-owned movie and television culture entities are encouraged to establish companies that specialize in the distribution of domestically produced films. The application conditions and procedures are as follows:
(1) The registered capital  shall be no less than 500,000 yuan;
(2) The applicant has been entrusted by movie production entities to have managed the distribution of two movies or has been entrusted by TV play production entities to have distributed two TV plays;
(3) Application letter, photocopy of the business license issued by the administrative department for industry and commerce, attestation on being entrusted to manage the distribution of movies and TV plays and other relevant documents shall be submitted; and
(4) where and applicant meets the aforementioned conditions and applies to the State Administration of Radio, Film, and Television for establishing a company specializing in the distribution of domestically produced films, the State Administration of Radio, Film, and Television shall issue the Permit for Movie distribution that permits the distribution of domestically produced films throughout the country. Where the applicant to the provincial administrative department of movie of its locality for establishing a company specializing in the distribution of domestically produced films, the said administrative department of movie shall issue the Permit for Movie Distribution that permits the distribution of domestically produced films in the province. the applicant shall bring the Permit for Movie distribution for domestically produced films to go through relevant formalities at the administrative department for industry and commerce of its locality.

Article 8 A company that has, in accordance with Article 7 of these Provisions, obtained the Permit for Movie Distribution for domestically produced films shall enjoy the equal rights and obligations as those enjoyed by existing provincial movie distribution companies in accordance with the Regulations on the Administrative of Movies.

Article 9 The State Administration of Radio, Film and Television shall, in accordance with the Measures for the Annual Assessment of the Distribution and Projection of domestically Produce Films, make the annual assessment on companies that have obtained the Permit for Movie Distribution.

Article 10 Theater circuits may be integrated either in a close type or a loose type. Theater circuits are encouraged to carry out trans-provincial reorganization pursuant of the principle of separate management , except for merger of theater circuits on the basis of administrative regions. Where an integration of theater circuits is made , it shall get approval of the State Administration of Radio, Film and Television.
(1)Domestic state-owned and non-state-owned movie and television culture (excluding wholly foreign-owned) entities are encouraged to hold shares in or control existing theater circuits or independently established theater circuits.
1) where an entity invests in an existing theater circuit by having shares (in a proportion below 49 percent), it shall invest no less than 30 million yuan within three years for the new construction and renovation of movie theaters in this circuit. where an entity invests in and existing theater circuit by holding controlling shares. it shall invest no less than 40 million yuan within three years for the new construction and renovation of movie theaters in this circuit.
2)Where an entity independently establishes an intra-provincial or national theater circuit, it shall invest no less than 50 million yuan within three years for the new construction and renovation of movie theaters in this circuit.
3) To establish a theater circuit, the establisher shall go through relevant formalities in accordance with the provisions of the State Administration of Radio, Film and Television on establishment of theater circuits. The establishment of an intra-provincial theater circuit shall be examined and approved by the administrative department of movie of the people's government of the province, autonomous region or municipality directly under the Central Government where the establisher is located, and be reported to the State Administration of Radio, Film and Television for the record. The establishment of a trans-provincial theater circuit shall be examined and approved by the State Administration of Radio, Film and Television.
(2) State-owned and non-state-owned entities an individuals are encouraged to, in accordance with the Regulations on the Administration of Movies, operate movie distribution an projection in the countryside throughout the country and operate movie projection in schools and communities in cities, by various means.
(3)State-owned and non-state-owned entities and individuals are encouraged to invest in construction and renovation of movie theaters. Application for the operation of movie projection business shall be examined and approved by the administrative department of movie at county level or above, and the applicant concerned shall go through relevant formalities at the administrative department for industry and commerce of its locality.

Article 11 The import of films shall be monopolized by film import enterprises designated by the State Administration of Radio, Film and Television. Distribution companies designated by the State Administration of Radio, Film and Television to enjoy the right to distribute imported films nationwide shall undertake the distribution of imported films nationwide.

Article 12 Movie shooting entities are encouraged to, through diversified channels, export domestically produced films that have obtained the Permit for Public Projection of Films. Movie production entities are encouraged to take part in foreign film festivals (exhibitions). Films sent to foreign film festivals shall obtain the Permit for Public Projection of Films and shall be reported to the State Administration of Radio, Film and Television to record in advance. The host of Chinese-foreign film exhibitions or international film festivals (exhibition) in China shall be reported to the State Administration of Radio, Film and Television for approval.

Article 13 A biennial inspection system shall be applied to the Permit for Movie Production and the Permit for Movie Distribution issued by the State Administration of Radio, Film and Television. Local administrative departments of movie shall, within the scope of their administrative authority, apply an annual inspection system to the Permit for Movie Distribution and the Permit for Movie Projection they have issued.

Article 14 Any matter not prescribed in these Provisions shall be handled in accordance with the Regulations on the Administration of Movies and relevant provisions.

Article 15 These Provisions shall come into force as of December 1, 2003.