Premier Li Keqiang along with China’s State Council has approved a draft of the Film Industry Promotion Law.
China’s State Council, headed by Premier Li Keqiang has approved a new draft of the Film Industry Promotion law. After waiting for quite a long time, the Chinese State Council has finally approved the new law.
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The step comes after the theatrical box office for the first eight months of 2015 has earned RMB 30 billion. This is more than the full year total of 2014. Gross revenues for the eight months have exceeded RMB 30 billion.
This means that there has been an increase of 48.5 percent on the same point in 2014. SARFT has stated that the box office is currently on track to exceed RMB 40 billion in 2015.
This also means that the country is on path to overtake the North American theatrical market within three years.
For a long time, the film industry has argued that it is hampered by antiquated laws and regulations. The industry has often complained that the Film Industry Promotion law has been delayed for too long. As the law is now passed by the State Council, the draft law will go up for discussion.
Then it will need approval by the Standing Committee of the National People’s congress, according to Variety.
After the NPC approved the draft, the new laws will trigger a series of incentives. These incentives will include taxation, investment and land usage. All these steps are to encourage businesses and individuals to join the film industry.
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Currently there is a lack of a rating system. This means that all films released in theaters will in theory be suitable for audiences of all ages. The government is now looking forward to install a ratings system. This will be undertaken through the China Film Distribution and Exhibition Association.