The State Council issued a policy yesterday governing private investment in certain sectors of the state-owned culture industry.

The policy, titled "State Council's Several Decisions on Non-governmental Capital in the Cultural Industry," clearly defines the areas that private investors can fund, including the performing arts, theaters, museums, exhibitions, Internet services, Flash animation and online games, film manufacturing, cinemas, and audio products distribution.

The government will allow state-owned performing troupes and theatres to form partnerships with private investors, who can be major stockholders.

In certain areas, however, the state will continue to have at least a 51 percent controlling stake. These include printing and distribution, news publishing, advertising, music, science, sports and entertainment programming by broadcasters and TV stations, film manufacturing, distribution and screening.

Developed by the Ministry of Culture, the State Administration of Radio, Film and Television and the General Administration of Press and Publication, the policy is "to guide private cultural companies in a sustainble and rapid development."

(China Daily August 9, 2005)