WORLD PRESS TRENDS - World Association of Newspapers

CHINA
Main economic indicators 1995-2001
1995 1996 1997 1998 1999 2000 2001
1 US$= 8.28 Rmb at 2001 rate
Gross Domestic Product (Rmb billion)
at current prices 5,851 6,833 7,490 7,985 8,205 8,940 9,617
% change 25.3 16.8 9.6 6.6 2.8 9.0 7.6
at 2001 prices 6,407 6,909 7,366 7,917 8,251 8,963 9,617
% change 7.2 7.8 6.6 7.5 4.2 8.6 7.3
Gross Domestic Product per capita (Rmb 000)
at current prices 4.7 5.5 6.0 6.4 6.5 7.0 7.5
at 2001 prices 5.2 5.5 5.9 6.3 6.5 7.0 7.5
Population
Millions 1,237 1,246 1,243 1,254 1,265 1,275 1,285
Consumer Price Index
2001=100 91.3 98.9 101.7 100.9 99.5 99.7 100.0
% change 16.9 8.3 2.8 -0.8 -1.4 0.3 0.3
Ad.spend as a % of GDP
0.28 0.31 0.36 0.39 0.42 0.44 0.44
Advertising Expenditure Growth (%)
at current prices 28.1 26.3 27.6 14.9 11.9 14.7 7.2
at 2001 prices 9.6 16.6 24.1 15.8 13.5 14.4 6.9
Source: IFS, ZenithOptimedia
Research
Circulation is audited by: Foreign audit organisations are now
allowed to set up joint-venture institutions on the mainland with
the Chinese Government
Readership is measured by: Central Viewer Survey & Consulting,
Institution of Public Opinion Polls under People’s University,
Horizon Market Research Co.
Taxes
VAT on: sales 13% advertising 15%
newsprint 17% plant 0
composition 0 (standard VAT rate 17%)
Discounts
on: post 0 rail 0 telephone 0 telegraph 0 telex 0
Ownership
Does any law exist governing publishing-house ownership, or the
registration of shares in newspaper-publishing companies No
Is there any law prohibiting or restricting foreign companies or
individuals from owning shares, and in particular, the majority of
shares, of domestic daily newspapers According to the China’s
commitment to the WTO and the Catalogue for the Guidance
of Foreign Investment Industries issued by three central
departments (the State Development Planning Commission, the
State Economy and Trade Commission and the Ministry of
Foreign Trade and Economic Co-operation), foreign capital is
normally excluded from the following industries:
· publishing, producing, distributing and importing
books, newspapers and periodicals;
· publishing, producing, distributing and importing
audiovisual products and electronic publications;
· news agencies;
· radio stations, TV stations, and radio and TV
transmission networks;
· producing, publishing, issuing and broadcasting TV
programs;
· producing and distributing films;
· showing video tapes.
However , a few foreign companies have successfully invested
in these industries in mainland China by forming local
partnerships. For example, since 1980 the US-based
International Data Group (IDG) has been a partner of China’s
Electronic Technology Information Institute of National
Information Industry Department in jointly publishing the
Computer World weekly since 1980. Now IDG is a shareholder
in 22 Chinese magazines. Hachette Filipacchi Médias Group of
France has published a Chinese edition of Elle magazine with a
Chinese counterpart since 1988. Vogel Burda Media of Germany
publishes CHIP, a monthly, with its Chinese partner.
Is there any law prohibiting daily newspaper or periodical publishers
from operating radio or television stations in the same locality
Newspaper and periodical publishers are not allowed to operate
radio or television stations, though not through explicit
legislation. The reverse is not true: China Central Television
(CCTV), China National Radio and China Radio International
have published more than ten periodicals, and Beijing Radio
and TV Group is a shareholder of Beijing Star Daily.
So as to guarantee disclosure and transparency in the capital structure
and to avert silent partnerships, is there a law or rule making it possible
to determine who actually owns a publishing company No
Is there an antitrust law limiting concentration in the daily press
No
Is further regulation of media concentration expected No
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WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003