Although the State continues to administer and control Chinese media, the chance has come for foreign investors to get more involved than ever. The State has decided to allow private and foreign investors to become involved through investment in state-owned broadcasting, newspaper, and other media groups. According to the Fiducia Management Consultants, in August of 2003, “the State Administration of Radio, Film, and Television (SARFT) agreed on granting television production licenses to eight privately owned Chinese companies.”1 Although the operation of all media organizations will remain under State control, foreign investors are permitted to participate in certain aspects of the media business.
A desire for increased revenue in the media business coupled with an initiative to strengthen the influence of Chinese media both nationally and internationally, motivated the recent changes. Despite the existence of vast numbers of media businesses, none of them yield much revenue. China hopes for its media industry to achieve the strength and influence comparable to its position as a global economic power. This initiative provides a great opportunity for businesses with Chinese investment aspirations to get involved. This is the first time foreign companies have been permitted to establish joint-ventures to produce television programs with Chinese companies. Furthermore, according to State regulators, this opportunity will only be available until the conclusion of this year.2
For more information on getting involved with China, please contact Michael Chen by e-mail at mchen@kmclaw.com.
1Fiducia Management Consultants, “China’s Media Industry is Opening Gradually,” http://www.fiducia-china.com/News/2003/266-1033.html?pp=1
2Kathy Chen, “China Eases its Grip on the Media,” Wall Street Journal, April 8, 2004.