WORLD TRADE
ORGANIZATIONS/C/N/220
24 December 2002
(02-7100)
Council for Trade in Services Original:  English
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The following notification has been received from the delegation of the People's Republic of
China.
____________
1. Member notifying:
The People's Republic of China
2. Notification under:
Article III, paragraph 3 of the General Agreement on Trade in Services
3. Date of entry into force/duration:
2000/10/25
4. Agency responsible for implementati on and enforcement of the measure:
State Administration of Radio, Film and Television
Ministry of Foreign Trade and Economic Co-operation
5. Complete description of the measure* indicating the modes of supply covered, the effect
on trade in services (e.g., restrictions/liberalization measures) and the impact of the
measure on commitments in the Member's schedule and Article II (MFN) exemption
list, if relevant:
Provisional Regulations Governing the Foreign Invested Movie Theater
Full text English translation of the provisional regulation is attached.1  The English translation
is for reference only and the Chinese version shall be authentic.
6. Members specifically affected, if any:
All Members
7. The texts are available from:
- Enquiry point /g254
- WTO Secretariat /g254
- Other sources (address, fax
and telephone of other body)  /g168
                                                     
* Including international agreements, recognition measures or other types.
1 In English onlyS/C/N/220
Page 2
Provisional Regulations Governing the Foreign Invested Movie Theater
(Issued by the State Administration of Radio, Film and Television Ministry Of Foreign Trade and
Economic Co-operation Ministry of Culture on October 25, 2000)
Article 1 The Provisions are formulated on the basis of the Law of the People’s Republic of
China on Sino-Foreign Equity Joint Ventures, the Law of the People ’s Republic of China on
Chinese Foreign Contractual Joint Ventures and Film Management Regulation, in order to meet thedemands of reform and opening up, absorb foreign investment, import advanced technology and
equipment and develop the Chinese film undertaking.
Article 2 The Provisions shall be applied to the establishment of Sino-foreign equity joint
venture or Sino-foreign co-operative enterprise within the territory of China (hereinafter referred to asthe foreign-invested movie thea ter) between foreign companies, enterprises and other economic
organizations or individuals (hereinafter referred to as the foreign partners) and the Chinese
companies and enterprises (hereinafter referred to as the Chinese partners), on the reciprocal basis and
with approval of the Chinese government to build, renovate the movie theaters and be engaged in film
business.
Article 3 The solely foreign-invested movie theater is not allowed.
Article 4 The foreign-invested movie theater shall fulfil the following conditions:
(1) conform to the layout and planning of local cultural facilities;
(2) have a registered capital of no less than RMB 10 million;
(3) have a fixed place for business operation;(4) the joint equity or co-operative movie theater shall never take the name of overseas 
movie theater, TV stations (media), etc;
(5) for the joint equity movie theater, the Chinese partners must invest no less than 51%
of the registered capital; for Sino-foreign co-operative movie theater, the Chinese
partners must take the leading position in the operation;
(6) have a business term of no more than 30 years for joint equity or co-operative movie
theater;
(7) abide by the Chinese laws, regulations and relevant provisions;
Article 5 If the Chinese partner makes investment with state-owned assets (except the
investment by cash), the invested state-owned assets must be appraised in accordance with the
relevant regulations of China on management of st ate-owned assets and confirmed by a department in
charge of state-owned asset management at the provincial level or above.
Article 6 The approval procedure for establishment of the foreign-invested movie theater:
(1) The Chinese partner must submit an application and the following documents to local
department of foreign trade and economic co-operation at the provincial level:
(a) the project proposal to establish the foreign-invested movie theater;
(b) certificate of the Chinese partner ’s legal person status, documents granting
it the right to use the land to build a movie theater and the bank credit 
certificate;
(c) the documents indicating qualifications of the foreign partner, bank credit 
certificate and certificate of its financial status produced by an accounting firm;
(d) the notice by the industrial and commercial department preliminarily 
permitting the use of name for the foreign-invested movie theater;
(e) the feasibility study report, contract and articles of association;
(f) other materials as required by laws, regulations and the authorities in charge 
of examination and approval.S/C/N/220
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(2) With the consent of the provincial film administrative departments, the provincial
department of foreign trade and economic co-operation should submit a report to
MOFTEC.  MOFTEC will carry out appraisa l work on the basis of Chinese laws and
regulations on foreign investment. After getting the consent of the State
Administration of Radio, Film and Television  and the Ministry of Culture, MOFTEC,
will is sue the Approval Certificate for Foreign-Invested Enterprise for those qualified
foreign-invested movie theaters.
(3) For the foreign-invested movie theater with the approval for establishment,
registration should be made at the State Administration of Industry and Commerce
within 1 month after the receipt of the Approval Certificate for Foreign-Invested
Enterprise issued by MOFTEC.
(4) After the construction or renovation of the foreign-invested movie theater is
completed, and checked qualified by relevant department, the foreign-invested movie
theater can apply for the Operation Permit for Movie Theater at the film
administrative department in the provincial people ’s government with its Approval
Certificate for Foreign-Invested Enterprise and the Business License.
Article 7 Article 6 will govern the procedure for the changes in holdings of shares and
investment amount in the established foreign-invested movie theater.
Article 8 The foreign-invested movie theater shall abide by the Chinese laws and regulations
and carry out business activities in accordance with the Film Management Regulation and subject
itself to the supervision and management of the relevant Chinese authorities. The films shown in the
movie theater should have the Film Permit by the radio, film and TV administrative department under
the State Council. Showing smuggled or pirated film, and showing video, VCD or DVD forcommercial purposes are prohibited.
Article 9 The foreign-invested movie theaters shall co nform to pertinent state regulations if it
intends to offer other entertainment services.
Article 10 Investors from HK SAR, Macao SAR and Taiwan Province investing in other
provinces, autonomous regions, and municipalities of China for building and renovating movie
theaters and operating film showing business shall refer to these Regulations.
Article 11 These regulations shall be effective as of the date of promulgation.
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