Cut tax and interference for cultural industry

To promote the development of the nation’s cultural industry, the Chinese government should reduce its interference with the industry and cut taxes for cultural enterprises, says an article in 21st Century Business Herald. Excerpts:

The Ministry of Culture, People’s Bank of China and Ministry of Finance co-hosted a meeting on March 25 in Wuxi, Jiangsu province, to discuss providing small loans and other financial support for cultural enterprises.

The central government released two special documents promoting the development of cultural industry this month. The authorities have paid attention to cultural industry development as early as 2003. In 2009, the central government listed the cultural industry as a national strategic industry, and called for social and foreign investors’ participation in the industry.

Hundreds of cultural industry foundations affiliated with local governments were subsequently set up but these organizations have not brought about the rise of China’s cultural industry.

Unlike past trials, the ministries agreed to establish a cultural industry development bank this time.

The Chinese government should draw lessons from South Korea’s success in reviving its cultural industry. The South Korean government made preferential tax policies for cultural industry entities to lower their financial burdens, and abolished many restrictive rules and laws that restricted the cultural enterprises’ healthy development.

Most of the cultural industry enterprises and agencies in South Korea are private. But most powerful players in China’s cultural industry are State-owned.

The Chinese government should create a better environment for the development of the private cultural industry, strengthen the protection of intellectual rights and cut taxes for the cultural industry.

More importantly, the government should reduce its interference with the creative work of the cultural industry and give enterprises and artists more freedom in business and creation.