(April 10, 2014)
SMPG G [2014] No.18

Attention: all District and County People’s Governments, and all relevant Commissions, Offices and Bureaus (Administrations) of the Municipal People’s Government: 
The Implementation Rules on Cultural Services Opened to Foreign Investment in the China (Shanghai) Pilot Free Trade Zone, formulated by the Municipal Administration of Culture, Radio, Film & TV, the Municipal Administration for Industry & Commerce, the Municipal Bureau of Quality and Technical Supervision, Shanghai Customs, and the China (Shanghai) Pilot Free Trade Zone Administration have been approved by the Municipal People’s Government, and are hereby distributed to you for your implementation in earnest.

Implementation Rules on Cultural Services Opened to Foreign Investment in the China (Shanghai) Pilot Free Trade Zone

These Implementation Rules are formulated in accordance with the Notice of the State Council on Promulgation of the Framework Plan for the China (Shanghai) Pilot Free Trade Zone (SC G [2013] No. 38), the Decision of the State Council on Temporary Adjustments to the Administrative Approval Items or Special Administrative Measures on Access Prescribed in Relevant Administrative Regulations or State Council’s Documents in the China (Shanghai) Pilot Free Trade Zone (SC G [2013] No.51) and the Notice of the Ministry of Culture on Implementing the Policies for the Management of the Cultural Market in the China (Shanghai) Pilot Free Trade Zone (CM G [2013] No. 47).
I. A foreign-funded enterprise is permitted to manufacture and sell entertainment and gaming consoles, which may be sold to the Chinese market subject to censorship by cultural authorities.
1. A foreign-funded enterprise in the China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as “the Pilot Zone”) that has obtained from the competent department of industry & commerce a business license specifying the business scope of “manufacture of entertainment and gaming consoles and sale of related products” may apply for censorship  to the Municipal Administration of Culture, Radio, Film & TV.
2. An entertainment and gaming console sold to the Chinese market shall be of legal intellectual property and beneficial to dissemination of science, art and humanity and to the sound development of youths. It may not contain any content prohibited in Article 13 of the Regulations on the Administration of Entertainment Places (SC D [2006] No. 458), and may not carry any gambling functions such as betting and return of coins or pin balls. Instructions on machine operation, game content and rules shall be written in the common language of China.
3. To apply for censorship, a foreign-funded enterprise engaged in the manufacture and sale of entertainment and gaming consoles shall submit a console with game content pre-installed and the following documents:
(1) Application Form for Review of Type and Contents of Entertainment and Gaming Consoles, and Registration Form for Censorship of Entertainment and Gaming Consoles;
(2) photocopy of business license;
(3) intellectual property documents related to content of games, including title document and licensing document;
(4) full-course video or Demo file of games; such file shall include all contents of games in the machine to be finally launched to the market, including content that will not appear in the regular course of games (submitted in the form of CD-ROM or DVD); 
(5) digital pictures showing the overall appearance of the product and consisting with the product to be actually sold, including one in front view and two in side view, all in *.JPG format with a resolution no lower than 800×600;
(6) electronic texts of sound files, name list and words of songs to be used in games; the electronic texts shall be a name list of all background music and songs, sound files and words of songs in both Chinese and foreign languages;
(7) electronic texts in both Chinese and foreign languages of all dialogues, voiceovers, descriptions in games as well as game instructions; and  
(8) content-providing plan for entertainment and gaming consoles; where the content is provided via the Internet, the Permit for Cyber-Culture Business of the content provider shall be submitted.
4. Shanghai Municipal Administration of Culture, Radio, Film & TV shall decide whether to approve an application within 20 working days after accepting such application. To the eligible applicant, it shall issue a Confirmation Sheet of Approved Content of Entertainment and Gaming Consoles and report to the Ministry of Culture for the record; otherwise it shall give written explanations.
5. Having obtained a Confirmation Sheet of Approved Content of Entertainment and Gaming Consoles, a foreign-funded enterprise may sell its consoles to the Chinese market. Where a console has a substantial change in its content, type or mode (upgraded or amended), the enterprise shall apply anew for censorship to the Municipal Administration of Culture, Radio, Film & TV.
6. A foreign-funded enterprise shall accept liability for the quality of consoles it manufactured and sold, and the products shall meet relevant standards and requirements of China and this Municipality. The products and their packages sold to the Chinese market shall have the product name, and manufacturer name and address indicated in Chinese.
7. While going through formalities for selling entertainment and gaming consoles to the Chinese market, a foreign-funded enterprise shall, apart from completing regular formalities of customs, submit to customs the Confirmation Sheet of Approved Content of Entertainment and Gaming Consoles issued by the Municipal Administration of Culture, Radio, Film & TV.
8. An enterprise that provides the content for entertainment and gaming consoles via the Internet shall comply with the Interim Provisions on the Administration of Internet Culture and the Provisional Measures on the Administration of Online Games issued by the Ministry of Culture, and shall obtain the Permit for Cyber-Culture Business; for a game product, an approval document of the Ministry of Culture shall be obtained. An enterprise that provides the content for entertainment and gaming consoles by other means shall comply with relevant provisions of the State.
9. The departments of industry & commerce, quality and technical supervision, and customs shall exercise administrative duties within their respective functions. The Pilot Zone Administration (hereinafter referred to as “the Administration”) is responsible for daily supervision over relevant foreign-funded enterprises.
II. The limitation on share ratio in a foreign-funded performance brokerage is lifted; the establishment of wholly foreign-owned performance brokerages is permitted to provide services in the administrative areas of Shanghai Municipality.
1. A foreign-funded enterprise in the Pilot Zone that has obtained business license from the department of industry & commerce may apply to the Municipal Administration of Culture, Radio, Film & TV for the Commercial Performance Permit for performance brokerages as well as a record certificate for the operator of performance venue. And the establishment of an equity/contractual joint venture of performance brokerage or performance venue is not subject to the limitation on foreign investment percentage of foreign investors.
2. To apply for the Commercial Performance Permit, a foreign-funded brokerage shall submit the following documents:
(1) Application Form for Establishment of Performance Brokerage; 
(2) photocopy of business license; and
(3) qualification certificates of three or more professional performance brokers. 
3. The Municipal Administration of Culture, Radio, Film & TV shall decide whether to approve an application within 20 working days of accepting such application. Upon approval, it shall issue a Commercial Performance Permit; otherwise, it shall give written explanations.
4. Where a foreign-funded enterprise establishes a performance venue in the service trade area of the Pilot Zone, it shall, within 20 working days after obtaining the business license, file for the record to the Municipal Administration of Culture, Radio, Film & TV and submit the following documents:
(1) Filing Form of Performance Venue Operator;
(2) photocopy of business license;
(3) photocopies of approval documents of administrative departments of fire prevention and public hygiene; and
(4) location plan and internal layout of performance venue.
5. Where a performance brokerage legally established in the Pilot Zone organizes a commercial performance, the procedure shall be done according to the following provisions:
(1) Where a commercial performance is to be organized in the Pilot Zone, application shall be filed to the Administration. If the commercial performance is to be staged by a domestic art troupe and performers, the Administration shall make a decision within three working days after accepting such application. If the performance is to be staged by foreign or Hong Kong/Macao/Taiwan performers, the Administration shall make a decision within 20 working days after accepting such application.
(2) Where a commercial performance is to be staged by foreign or Hong Kong/Macao/Taiwan performers in a place outside the Pilot Zone but inside the administrative areas of Shanghai Municipality, an application shall be filed to the Municipal Administration of Culture, Radio, Film & TV, and the latter shall make a decision within 20 working days after accepting such application. Where a commercial performance is to be staged by a domestic art troupe and performers, an application shall be filed to the district/county administrative department of culture of the intended place of the performance, and the latter shall make a decision within three working days after accepting such application.
6. Where a performance venue operator legally established in the Pilot Zone is to organize a commercial performance at its own venue, it shall file an application to the Administration, and the Administration shall make a decision within three working days after accepting such application.
III. Foreign investors are permitted to establish wholly-owned entertainment venues to provide services in the Pilot Zone.
1. A foreign-funded enterprise in the Pilot Zone that has obtained business license from the department of industry & commerce may apply to the Administration for an Entertainment Business Permit. At the preparation stage of an entertainment venue, a foreign investor may consult the Administration, and the latter shall provide guidance according to law.
2. Where a foreign-funded enterprise establishes an entertainment venue in the service trade area of the Pilot Zone, it shall meet establishment requirements set out in the Regulations on the Administration of Entertainment Places (SC D [2006] No. 458), the Administrative Measures on Entertainment Venues (MC D [2013] No. 55) and other relevant rules and regulations, and submit application documents to the Administration. The Administration shall make a decision within 20 working days after accepting such application. Upon approval, it shall issue the Entertainment Business Permit; otherwise, it shall give written explanations.
IV. The manufacture and sale of entertainment and gaming consoles conducted by a foreign-funded enterprise, the operating activity of a foreign-funded performance brokerage and a performance or entertainment venue shall be incorporated into the credit management system of business entities of Shanghai’s culture market.
V. These Implementation Rules also apply to the manufacture and sale of entertainment and gaming consoles and establishment of performance brokerages, or performance or entertainment venue in the Pilot Zone by investors from the Hong Kong Special Administrative Region, Macao Special Administrative Region or Taiwan region or by Chinese nationals domiciling outside China. 
VI. These Implementation Rules shall be effective as of the date of promulgation.

Shanghai Municipal Administration of Culture, Radio, Film & TV
Shanghai Administration for Industry & Commerce
Shanghai Municipal Bureau of Quality and Technical Supervision
Shanghai Customs, PRC.
China (Shanghai) Pilot Free Trade Zone Administration
March 31, 2014