This revised regulation also ends government examination and approval of video halls. Those previously sanctioned will not have permits renewed, with the goal of shutting down all such operations in 5 years.

The revised Film Administrative Regulations encourage public institutions and individuals to join in film production through financial aid and investment. With permission of the administrative department in charge of radio, film and television under the State Council, units other than the film production units can take part in film producing. Once gaining permission, the unit should go through relevant registration formalities at the administrative department of industry and commerce. Then, before the production, the unit should go to the State Administration of Radio, Film and Television to get a single “permit of film-production,” that entitles the bearer to the same rights and obligations as film-production units. The revision also provides an explicit range about the amount of fine for violations of the regulations.

The revised regulation on publishing permits establishments of Chinese-foreign joint ventures, cooperative enterprises and exclusively foreign-owned enterprises to engage in distributing of books, newspapers and periodicals. The measures will be implemented by the publishing administration department in conjunction with the appropriate authority in foreign trade and economy under the State Council. Rules on the import of publications were for the first time included, making clear the requirements for establishing units of importing publications as well as intensifying the penalties.

The revised regulation on foreign finance firms stipulates that a foreign finance firm can apply for establishment of a business agent in any city of China as long as it complies with the accession requirements. Foreign-owned banks, branches and Chinese-foreign joint-venture banks can partially or totally receive and manage deposits, grant short-, medium-, and long-termed credits within the business scope set by the People’s Bank of China (PBOC).

The revised regulation cancels the previous limits on access to RMB market for foreign finance firms. New application requirements include a three-year history of business in China, making a profit for two years and some other requirements stated by the People’s Bank of China. Rate of deposit, credit and all kinds of service charges are set according to related rules from the PBOC. There is no limit for foreign finance firms in China on objects of foreign currency service. This regulation also relaxes the limit on Chinese companies in Chinese-foreign joint-venture banks and financial companies. Instead of being limited to financial companies, foreign firms may jointly operate with any Chinese firm it chooses.

In compliance with the commitments China made for entry into the World Trade Organization (WTO), the revised regulation on the administration of insurance companies with foreign investment states that foreign insurance company may set up a Chinese-foreign joint insurance company, an exclusively foreign-owned insurance company or its own branch in China. Foreign-invested insurance firms in China can totally or partially operate the following insurance businesses: Property insurance including property-loss insurance, liability insurance, credit insurance; personal insurance including life insurance, health insurance, accidental injury insurance; large commercial risk insurance including warranty insurance but within approved insurance coverage. However, one foreign-invested firm cannot operate both property insurance and personal insurance.

(china.org.cn March 20, 2002)