Publications

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Nine Chinese ministries and commissions, including the National Development and Reform Commission and the Ministry of Culture, have jointly issued the Certain Comments on the Establishment of a Rational Supply System for the Performance Market and the Promotion of the Prosperous Development of the Performance Market (Comments), which will allow foreign investors to invest directly in live performing arts projects in China for the first time.

By opening the live performance market to foreign investment, China expands the permitted scope of foreign investment to include performance projects, such as content production and project operations. The potential beneficiaries are foreign investors who have been eying China’s vast live performance market, and who stand to benefit from the new channels the Comments open up for injecting funds into this flourishing domestic market.

Before the Comments were issued on January 30, 2008, the Administrative Regulations on Commercial Performance (in effect since 1997) had permitted foreign investment for renovation and construction of commercial performing arts theatres and other performance venues, but prohibited participation by foreign investors in operations and management. After the Regulations were amended in 2005, these restrictions were lifted, but no permission was expressly granted for foreign investors to invest in domestic performing arts projects.

Good News for Foreign Investors and the Performing Arts

The good news is not just for foreign investors. The Comments also soften the market access conditions imposed on civil performing arts organizations and simplify the procedures for examination and approval applicable to private performing arts organizations. The Comments intend to encourage development of China’s multi-layered live performance market—including such facets as performances for tourists, mass market entertainments, and other performance venues--by establishing a rationally structured supply system.

The new policy also encourages private investment in reconstruction of state owned performance venues by way of investment, equity participation, share control, merger, and acquisition.

Investment Approvals Will Likely Be Expedited

The demand in China for more, and more comprehensive, entertainment options is growing. By issuing the Comments, China sends a strong signal to foreign investors that it is not only encouraging investment in this market, but that it needs foreign expertise to strengthen this business sector and the growing domestic demand. The Comments were a joint effort of many ministries and commissions, so it is expected that all applicable Chinese governing agencies are prepared to expedite the investment approval process.