Prof Danlin Li
Director, Centre of Media Law and Policy,
Communication University of China
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Oxford
15th June 2012
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The three phases of reform in China’s culture/media law
and policy
The evolution of China’s cultural media policy in the new
century: A review
People.cn Co., Ltd: Background, recent IPO and its
implications
Some thoughts on the reform of China’s culture/medial law
and policy in future
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This paper investigates the reform and evolution of China's
culture and media sectors, especially the process they have
gone through and the problems they have faced.
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In particular we discuss the implications of the successful
IPO of People.cn Co., Ltd on the reform and evolution of
China's culture and media policies.
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Three phases of reform in the culture/media sector since
China’s adoption of economic reform at the end of the 1970s:
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1978—1992: recognition of cultural market and escape
from political dominance
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1993—2000: differentiation between non-profit making and
profit making entities in the cultural industries
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2001—2012: further development of the cultural industry
based on marketization and corporatization
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The relationship between culture and media in the Chinese context:
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Cultural industry：Culture and its related industries are defined
as those (business) activities to provide the general public with
cultural, entertaining products and services（based on the official
“Notice on the categorization of culture and its related industries” by the
State Statistics Bureau of China in 2004)
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Cultural industry is divided into core cultural industries,
peripheral cultural industries, and related cultural industries.
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Media industry is at the core of cultural industry, including: news
& publication, broadcasting and Television, internet and film etc.
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The relationship between culture and media industry is like
the whole and its part
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Cultural system reform is entwined with the reform of
media system. This is because media is very special and
critical to the political life of any country.
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Media as part of news broadcasting is more concerned with
not only cultural system but also, maybe more, political
system.
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Policies developed since the beginning of
the new century:
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In 2001, the CPC Central Committee and State Council Office approved "Opinions on
reforming news publication, broadcasting, film and television industries by Central
Propaganda Department, the State Administration of Radio, and the Administration of
Press and Publication".
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In the 16th National Congress of Communist Party of China (16th NCCPC) 2002, the field
of culture and media has been divided into public non-profit making and profit making
categories, which extended the understanding and practical implementation for further
reforms.
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In October 2003, the Third Plenary Session of the Party's Sixteenth National Central
Committee approved the decision on improving socialist market and economic system,
and proposed to promote the coordinated development between cultural affairs and
industries. Press and Publication Administration issued a programme on the
implementation of the news publishing system reform.
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In September 2004, the Fourth Plenary Session of the Party's Sixteenth National Central
Committee approved the decision on strengthening the Party's ruling capacity and
proposed the idea of cultural restructuring, liberation and development of cultural
productivity.
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In December 2005, the CPC Central Committee and State Council Office issued "Opinions
on promoting the reform of cultural system" which contributes to the development of
cultural system. The government will support Party's newspapers and journals, radio and
television stations, news agencies, news websites, current affairs newspapers, and a few
institutions which have political or public welfare publishing responsibilities. Other
publications, newspapers and magazine presses should be transformed into enterprises
gradually.
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In the 17th National Congress of Communist Party of China (17th NCCPC) in October
2007, it was proposed to improve the building of socialistic culture, enhance the soft
power of national culture, and promote the development and prosperity of socialist culture,
in accordance with the view of socialism with Chinese characteristics and "Four in One"
strategic framework.
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In June 2008, Press and Publication Administration proposed the
strategic "three-year three-step" plan¹, paving the way for transforming
business-oriented publication organizations to real enterprises.
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On February 19, 2009, the Political Bureau of the Party’s Central
Committee issued "Opinions on promoting the institutional reform of
central government departments and units", and established leading
groups with responsibility of reforming the central departments and
units. In April, the State Press and Publication Administration issued
guidance on further structural reform in the press and publication
sector. On the 22nd September, the Central Office for Overseas
Publicity issued the plan of restructuring key news websites into
enterprises. So far, the programme of transformation and the IPO of socalled "official websites" has been listed on the agenda. At the same
time, China's first cultural industry plan, named "Cultural Industry
Promotion Plan", has been proposed and adopted by the State Council
executive meeting.
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In April 2010, a guidance on revitalizing and supporting the
prosperity of financial and cultural industries has been jointly
issued by nine ministries, including the CPC Central Propaganda
Department, the People's Bank of China, the Ministry of Finance,
the Ministry of Culture, Administration of Radio, Press and
Publication, CBRC, CSRC, and CIRC.
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In April 2011, the State Council Information Office issued
"Opinions on promoting transformation and IPO of news website".
In May, the CPC Central Committee and State Council issued
"Opinions on promoting transformation of non-political
newspaper publication institutions". On October 16, the Sixth
Plenary Session of the Party's Seventeenth National Central
Committee made the decision on restructuring and promoting
cultural development and prosperity.
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The traces of government policy development
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Differentiation between profit making and non profit making
Corporatization of profit making organizations
Allowing more organizations to be corporatized in much
wider business lines within the media industry
Encouraging the establishment of business groups
Selected firms to conduct IPO for access to capital market
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Value orientation of the latest policies
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“Efficiency”：ethically acceptable, primary value
orientation
“Order”：fundamental value, more important when
there is a clash between efficiency and order
“Fairness”，reflection of citizen rights protection,
Cultural and media industry policy has swayed between
efficiency and order
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Review:
There has been a huge progress in the media industry given that the
media sector can hold different views, and that citizens can enjoy
the freedom of expression on internet.
Overall, media becomes more important and can contribute to the
protection of citizen rights by monitoring legislative, executive and
judiciary bodies
Hence, the policies and legislations for media reform based on
efficiency orientation have promoted the economic performance of
the cultural industry and strengthened its international
competitiveness.
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Review:
Although the Chinese government has been much
more open and rational in the recent past, it does not
indicate that the protection of citizens’ fundamental
rights has been the primary consideration in handling
social conflicts.
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Existing problems:
1.
2.
The irrationality of content control system
The unlawfulness of the authority of content control
organizations
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Existing problems:
1.
The irrationality of content control system
On one hand, over strict in content control; too many
permission requirements, authority check, screening before
publication etc.
On the other hand, absence of relevant rules and relaxation or
non-existence of checks on vulgar and violence contents
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Existing problems:
2. The unlawfulness of the authority of content control
organizations
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Too many content control authorities
Lack of effectiveness in administrative proceedings
Absence of constitutional litigation
Randomness in legislation and policy making
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Explanations for the existing problems
1.
The traditional Chinese value of “wen yi zai dao” (articles are there to
teach principles and virtues) hence government has a duty to intervene in
content control to make sure all media contents are in accordance with
disseminating principles and virtues
2.
The revolutionary logic and rationale from revolutionary wars and
struggles against non-revolutionary thinking
3.
Lack of democratization in existing political system
4.
Low professionalism in social management
Widespread mentality of the Chinese society regarding government
officials and ordinary people (i.e., officials can manage ordinary people)
5.
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Basic information regarding Peole.cn
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“Peole.cn” i.e., Peole.cn Co, ltd, previously named People.cn
Development Ltd, was established on 6th February 2005 by
People’s Daily Newspaper Press, Global Times and Zhongwen
Assets Management Ltd. In June 2010,
In June, 2010, it became joint stock company Limited with main
shareholders including: People's Daily, Global Times, Jinghua
Times, Automobile News Paper, China publishing house, China
Film Group and the Eastern Media to form the new company with
a registered capital of 170000000 yuan approved by the Ministry
of Finance
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The political and economic privileges enjoyed by People.cn Co., Ltd
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Exemption of corporate tax for four years.
Controlling shareholder gained profit even though no income ever
recorded.
The specialness of its clients – its largest client is the Ministry of
Finance
It has over 130 journalists on its pay book, which other news
websites or commercial sites cannot match.
Hence, the revenue of People.cn Co., Ltd comes from preferential
policies, government support and monopoly.
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The policy breakthrough and possible implications of the IPO by
People.cn Co., Ltd
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The IPO and listing in the stock market by People.cn Co., Ltd has
the obligation to disclose information by law, which will promote
the transparency in the control of media sector.
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Content editing is part of the business that People.cn Co., Ltd
brings with it to the stock market listed company. This is a
breakthrough for content control.
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People.cn Co., Ltd as a stock market listed company has clear cut
ownership structure. This is in contrast to the blurred ownership
concept in traditional media entities.
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Queries and different views on the IPO of by People.cn Co., Ltd
1.
2.
An arrangement for People.cn Co., Ltd to seek capital for
fast expansion according to the call of national cultural
development, prosperity and the corresponding political
concept.
Business principles have to dominate. How can a media
firm develop and grow to truly create public space for
democracy and law society?
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Queries and different views on the IPO by People.cn Co., Ltd
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Being naïvely optimistic
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- Vulgar political correctness
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We cannot think China will adopt the system of protecting
press freedom and citizen's freedom of expression, and
public interests will become the primary goal of media
management and control.
The listing of People.cn Co., Ltd in the stock market is a
result of the confrontation between commercial appeal and
special political target, which has a positive role in relaxing
strict control system in use for media and promoting
institutionalization of media management and control.
We still cannot see the words like "public interest" to appear
in our existing legislation, policy and variety of related
documents.
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On one hand, efficiency has continued to be the top priority of
legislation and policy making;
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On the other hand, insisting on content control to ensure order
will still be at the core of the current system.
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The IPO and listing of People.cn Co., Ltd will not be repeated by
other key news websites.
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Protection of citizen’s basic rights, public interests in line with the
requirements of a democratic society, will gradually become a key
target of cultural media legislation and policy development.
However, this will take a long time to achieve.
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Thank You
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