China to Give Film Industry Cash Injection

china film

Tax breaks also on the agenda.

HONG KONG – China’s film industry is to benefit from a government stimulus package, it was announced on Thursday.

According to official news agency Xinhua there will be a cash injection of RMB1 billion ($163 million), provided by a cluster of ministries. It will support the production of between five and ten movies each year for five years.

The cash will come from the Finance Ministry, the National Development and Reform Commission, the Ministry of Land, the Housing Ministry and the Urban People’s Bank of China.

Other cash from the pre-existing cultural development fund will go towards promoting the use of high-technology in movie making, boosting exports of Chinese films, investing in highly-marketable productions and building professional film websites.

The sector will also benefit from a package of tax cuts. Value added tax will be removed business revenues flowing from copyright sales and distribution revenues for a period of five years running till 2018. Movie theatres in rural areas will also be exempted.

With cinemas being built at the rate of over a dozen per day and some 600 films produced annually, China is not exactly developing slowly. But there are concerns that quality is not being given a high enough priority.

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