China’s New Policy to Support the Film Industry

Jun 22, 2025 CFM Don't Miss, Spotlight 0

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A new set of policies to support the film industry development is announced by the Ministry of Finance in People’s Republic of China:

First, strengthening the management of film funds

The contribution, utilization and management of funds will be strengthened for their efficient use.

Second, funding a certain types of films

The Ministry of Finance will provide RMB100 million to support the production of 5 to 10 influential special-themed films every year.

Third, financially supporting the film industry

Part of the special funds in the cultural industry development will be used for the film industry, mainly involving five aspects:

1. to promote the application of high technology in film production;
2. to advocate the Chinese studios to go abroad;
3. to support important film industrial projects and help build high-tech bases;
4. to fund the films with strong market potential;
5. to reinforce the construction of key and professional film websites.

Fourth, favorable tax policies for the film industry

Value-added tax(VAT) exemption will be applied from 2014 Jan 1^st to 2018 Dec 31^stwhen it comes to the earnings from the film copy sale to filmmakers and copyright transfer, distribution revenue of film distribution companies and projection income in rural area of film projection enterprises.

The general taxpayers who provide urban film projection pay the VAT in accordance with the current regulation.

Fifth, allocating subsidy for cinema construction in central and western regions

The Ministry of Finance will arrange subsidy from the film special funds to support the digital cinema construction, particularly in poor counties in China’s central and western regions and underdeveloped areas in eastern China. The local government will assign the funds in line with its economic situation to keep the construction balanced.

Sixth, strengthening and improving the public service and regulatory system of film distribution and projection

The film industry should adjust to the technological innovation and upgrading trend, and strengthen and improve the public service and regulatory system of film distribution and projection to enhance the modernization and intelligence of operation, service and management.

Seventh, offering financial support policies for the film industry

The government will encourage the banks and financial institutions to create film-targeted credit products and based on the effective control of risk, we will expand the scale of credit products, such as the loan of finance and lease, pledge financing of accounts receivable, financing of the industry chain, pledge financing of stock, and explore the possibility of intangible assets mortgaging the pledge financing, in order to broaden the loan mortgages of film companies.

The service pattern innovations which are suitable for the film industry development will be encouraged. Banks, investment funds and insurance institutions will be advocated to provide integrated service for the film companies.

The direct financing of film enterprises will be promoted. The government will advocate the qualified companies to go public and issue relevant bonds to help finance. The government will guide different institutional investors to invest in the film industry. Key film studios, companies and projects will be subsidized from the Ministry of Finance.

Eighth, applying different land use policies in the cinema construction

Considering the difference in land use and film projection, different watching facilities and land supplies will be established and adopted accordingly.

First, new monomer cinemas should be built in nominal quotation of land use. Accordingly the government will determine the owner of land use and set standards for construction.

Second, new ways will be explored of building and land supply in the construction as to the business-service facility project.

Third, the government will be in favor of renovation of the existing cinemas and advocate offering multiple services like business and office work.

Fourth, construction of projection facilities is favored in public places, including library, museum and cultural center.

Fifth, the government will encourage the use of stock land for construction to build cinemas.

Sixth, oversight will be tightened of the land use for cinema construction. The user should develop the land in accordance with the contract and should be approved by relevant departments if the use of land is to be changed. For monomer cinemas, the land use should be stated clearly in the contract and the land will be resupplied after resumption should its use be changed.

 

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• policy change