GAPP issues new policy to boost media industry

Apr. 7, 2009 (China Knowledge) - China's General Administration of Press and Publication (GAPP) recently issued a new policy to encourage the media industry to develop market-oriented enterprises from the current government-operated institutions, sources reported.

Wei Pengju, vice president of the School of Culture and Media at the Central University of Finance and Economics, said the government policy was changed for three reasons.

First, the consumption level in China is able to support the market development of cultural industries. Second, social and private capital are active to a degree that requires reforms for developing the industry. Third, during the global economic slowdown, there has been an increase in demand for cultural and entertainment products.

GAPP wants to develop six or seven key media and publishing enterprises with assets and sales revenues exceeding RMB 10 billion.

GAPP's new policy also calls for all 579 publishers in China, excluding four state-owned publishing houses, to become market-oriented enterprises before 2010.

Furthermore, the new policy encourages media enterprises to go public when they fulfill the listing requirements.