China s Cultural Industry Policy

China s Cultural Industry Policy WonBong Lee and KyooSeob Lim Abstract In the globalized world, the cultural industry has emerged as a new promising field. Countries are accelerating their competition to become a culture power nation. In the past, China used culture in the purpose of electing ideology. Since China s entry into the World Trade Organization (WTO), China started to foster the cultural industry. Since 2001, China started to carry out the cultural industry policy. In 2009, after Cultural Industry Promoting Plan, China propelled cultural industry to promote policy in earnest. In 2011, the Chinese government claimed it would nurture the cultural industry as a national strategic industry. In China, cultural industry has been stressed as a part of its soft power strategy. The culture has been emerged as a mean for spreading ideology and a new growth engines for industry. Keywords Chinese culture Cultural Industry Cultural Strategy Cultural system reform 1 Introduction In the globalized world, culture is combined to industry. At the same time, countries have been forming the cultural industry by systemizing and industrializing culture for supply. Since 1999, the Chinese government has given an W. Lee (&) Department of Chinese Studies, Kyung Hee Cyber University, 1 Hoegi-Dong, Dongdaemun Gu, Seoul 130-701, South Korea e-mail: wblee@khcu.ac.kr K. Lim Department of Foreign Language and Culture, Institute of International Education, Kyung Hee University, 26 Kyunghee-daero, Dongdaemun gu, Seoul 130-701, South Korea e-mail: lks@khu.ac.kr J. J. (Jong Hyuk) Park et al. (eds.), Multimedia and Ubiquitous Engineering, Lecture Notes in Electrical Engineering 240, DOI: 10.1007/978-94-007-6738-6_75, Ó Springer Science+Business Media Dordrecht(Outside the USA) 2013 611

612 W. Lee and K. Lim important on the status of culture, and in the 2000s, the government accelerated importance of the culture. Since China s reform and openness policy, China s economy has been growing and it brought changes in consuming culture. Therefore, demands on the culture products are skyrocketed and Beijing realized lack of cultural products which should be consumed in various mass media [1]. Also, as China emerged as an economic power, the Chinese government accentuated fostering cultural industry in order to enhance China s status to the higher level in the world [2]. Although China s cultural industry largely developed in line with the economic growth, cultural industry is given little weight than other industries. In 1996, the added value of the cultural industry was 21.184 billion yuan (RMB), accounting 0.3 % of GDP. Moreover, in 2009, the added value of the cultural industry was 103.77 billion yuan (RMB), accounting 0.3 % of GDP. Since 2000, China s cultural industry has comparably maintained stable growth [3]. China sets up the cultural industry as an emerging industry and considers it as a driving force for the national development in the tide of globalization. China aims to enhance social and cultural level through the cultural industry policy and wants to emerge as a culture power. Also, the Chinese government tries to establish Chinese own cultural industry system. The focal point of our discussion will examine the forming factors of the Chinese cultural industry and its development strategies with current state of the cultural industry on the regional basis. This paper will also analyze characteristics of China s cultural industry. 2 Cultural Industry Policy 2.1 Culture and Cultural Industry Culture refers to the people s way of living or the way of thinking at a certain place. Culture is used extensively including food, clothing, shelter, language, religion, knowledge, arts, and institutions [4]. Culture riches people s lives by changing natural state of human being artificially with skills and labors. In other words, culture endows new value to the nature. Culture is a creation of both spiritual value and material value [5]. Recently, countries put an importance on culture as a key factor when it comes to evaluating comprehensive nation s power. Every nation tries to heighten its cultural soft power. Generally, the United Nations Educational, Scientific, and Cultural Organization (UNESCO) defines the cultural industry as one business s production, reproduction, storing, and distribution of cultural products or services and its steering those cultural products or services in commercial way. In other words, the cultural industry means using culture for economic interests rather than cultural development itself [4]. The cultural industry connotes one nation s value comprehensively. Therefore, culture plays important role in building one country s

China s Cultural Industry Policy 613 national identity. The spiritual culture provides foundation for the cultural industry and the cultural industry exercises a great effect on people s mindset. The cultural industry is a new phenomenon which is evoked in the process of integrating culture, economy, and technology. The cultural industry creates synergy effect through integrating environment-friendly industries, higher valueadded businesses, and other industries. Also, the cultural industry develops new markets and jobs with small money. As the cultural industry does not harm the environment, the cultural industry draw attention to many nations as a new emerging industry. At the same time, the cultural industry is a promising industry with higher practical ability with relations to other industries and higher synergy effect. The cultural industry became a key industry for social development and economic growth. The competition among nations to become a culture power has become cutthroat. The cultural industry market in the world over 1 trillion dollar, and it will be one of industry upgrade in the future. 2.2 Decision Factor of the Chinese Cultural Industry Policy Before the reform and openness, China recognizes culture as a mean for spreading ideology rather than industry. Also Beijing did not put in any efforts to consider culture as an industry. Culture was managed by the government budget and used only for the ideological purpose. Namely, culture was accentuated only for the key propaganda tool for the Chinese politics. As a result, China s culture could not sharpen its competitiveness. According to the China s rapid economic growth, national power also enhanced. China s international standing also largely surged. However, the competitiveness of the Chinese culture was not commensurate with China s international standing. Therefore, we could say that the Chinese leadership awareness change on culture started from outside factors. China s entry into the World Trade Organization (WTO) is a good example. Since China s entry into the World Trade Organization (WTO), China was necessary to open its cultural market. According to the change, China needed to protect its cultural sovereignty. Unless China grew its competitiveness of the cultural industry, it destined to face consumer market from outside influences. Since the entry into the World Trade Organization (WTO), the Chinese government has consistently issued policies to nurture cultural industry. Therefore, along with the economic growth, China experienced changes of consumption patterns. With the changes, the Chinese government keeps enlarging demands on pop culture. Based on the economic ability, the Chinese government started to promote cultural industry aggressively. Beijing has strong will to combining its 5000 years rich history, which was an incomparable culture power in Asia, with culture and nurturing cultural industry.

614 W. Lee and K. Lim 3 Development Process and Development Strategy of China s Cultural Industry Policy 3.1 Categorizing Cultural Industry Policy Cultural industry includes some 10 types of industry i.e. publishing, radio and television, newspapers and magazines, commercial display, entertainment, exhibition, and network. Those industries share commons as well as different characters. The Bureau of Statistics of China categorizes cultural industry according to their industrial fields for statistics process. The key field of cultural industry is four parts: news paper, publishing and copyright, movie and drama, and cultural arts. Departments in charge are the Bureau of Culture, the Bureau of Newspapers and publishing, and the Bureau of Photoelectric. In 2012, the Bureau of Statistics of China reissued Category for Culture and relating industries and separates the cultural industry with two parts depending on the industrial relevance. 1 The first sector is production of cultural goods including newspapers, publishing, broadcasting, TV, movie, cultural arts, culture and information release, cultural creation and establishment, leisure and entertainment service, and crafts arts. The second sector is production of culturerelated goods including production of auxiliary materials for cultural goods (publication right, print, and copy etc.) and production of cultural goods (office stationary, music instrument, and plaything etc.). 3.2 Development Process of China s Cultural Industry Policy Before 1999, China used the term cultural business rather than cultural industry. The term cultural industry firstly emerged in the Chinese society after 2000. China s cultural industry policy corresponds with development stages of its cultural industry. China s cultural industry had its earliest beginning at 1978. We can call the period the simple supporting stage (1978 1992). In the 1990s, as the Chinese economic development accelerated, development of the cultural industry also became faster. This period is the promotion stage. Since 2000, the Chinese government has implemented policies so as to supporting cultural industry strategically. The simple supporting stage was the first step to the cultural industry. In the period, culture manufacturing businesses and cultural service industries emerged with some advertisement companies. In the promotion stage, the Chinese government intentionally encouraged the development of the cultural industry. In this 1 http://www.stats.gov.cn/tjbz/t20120731_402823100.htm

China s Cultural Industry Policy 615 period, policies focusing on reforming cultural system established. Also, all sorts of regulations were enacted. At the 5th Plenary Session of the 15th Central Committee of the Communist Party of China, the Chinese official papers firstly used the definition of the cultural industry and the cultural industry policy. Since 2001, we call this period the strategically supporting period. After the twenty first century, cultural competition among nations has been deepening. Since China s entry into the World Trade Organization (WTO) in 2001, China started to firmly consider the cultural industry s statistic standing. Since then, the Chinese government released announcements to lead cultural system reformation and the development of the cultural industry. In the 10th Five-Year Plan (2001), the Chinese government put an emphasis on electing the cultural industry policy and promoting development of the cultural industry. In the 11th Five-Year Plan (2006), the Chinese government established ordinances and regulations to develop cultural industry. In the 12th Five-Year Plan (2011), the Chinese government decided on to nourish cultural industry. In the 11th Five-Year Plan and cultural development planning, the Chinese government mentioned it would promote movie, publishing, printing, advertisement, entertainment, exhibition, digital contents and character, and animation industries. The statement intended to specify cultural industry relating policies. The cultural industry promoting plan was issued in September 2009, and it provided a basis for the cultural industry promoting policy. The 12th Five-Year Plan contained plan for nourishing cultural industry as a major industry. To achieve the goal, the Chinese government implemented several supportive policies such as inviting major enterprises and investors [6] (Table 1). 3.3 Regional Distribution of the Cultural Industry China s cultural industry is largely different from one region to another. On added value basis in 2009, Shanghai, Zhejiang province, Guangdogn province, Jiangsu province, Sichuan province, Shandong province are of great importance when it comes to culture. We could say added value of the cultural industry in East coast region is relatively greater than middle or western region [3]. Table 1 Development process of China s cultural industry policy Period Major issues Initial stage 10th Five-Year Plan (2001 2005) Establishing cultural industry policy Categorizing cultural-related industry Embodiment stage 11th Five-Year Plan (2006 2010) Development of cultural industry Strengthening governmental control Deepening stage 12th Five-Year Plan (2011 2015) Fostering culture as a major industry Electing policies and strategies to be a culture power

616 W. Lee and K. Lim In order to develop regionally and ethnically characteristic cultural industry complex, China try to its competitiveness of the culture industry by enlarging its industrial volume. In the Table 2 we could find out 8 regions with high added value of the cultural industry during the period of the 11th Five-Year Plan (2006 2010). Through the Chinese government s management systems and policies which are suited for each region, most regions develop the cultural industry in different fields. 4 Characteristics of the Chinese Cultural Industry 4.1 Future Industry Combining Value of Economy and Culture At the 6th Plenary Session of the 17th Central Committee of the Communist Party of China, the Chinese government set up a goal to nourishing cultural industry as a key industry in economy by 2020 in order to realizing the nation s vision. In China, cultural industry enjoys its standing not only as a key industry but also so called future industry or next-generation industry. The strategic value of the cultural industry lies not just in creating economic value, but in reforming Table 2 During the 11th Five-Year Plan, Characteristics of cultural industry major cities Region Main characteristics Major industry Beijing Securing strength on resources with rich history and culture Providing abundant cultural assets on the development of cultural culture creating industry Shanghai Developing culture focused on advertisement and service Guangdong Taking the No. 1 ranking in China in printed material, broadcasting, digital publishing, printed publishing Hubei Development of animation, online game, online optional service, new media Zhejiang Having the largest private cultural enterprises, with the largest movie studio established by the private capital China s largest animation industrial complex Shan dong Geographically taking the advantageous position to spread culture in another region Sichuan Western cultural industrial region with the center market Shanxi Promoting cultural policy aiming to cultural industry and tourism Publishing, news paper, movie, TV, entertainment industry Record and video, TV, play, mobile game Media cultural industry, amusement, TV Book, publishing, record and video, exhibition Education, animation, movie Broadcasting, publishing, record and video Internet game, media Play, Internet, amusement

China s Cultural Industry Policy 617 industrial structure. That is the fundamental transformation of the way of the economic development [7]. Moreover, China intends to promote the cultural industry combining the economic development and the proud 5000 years cultural power [8]. China considers cultural industry is intensely related to the China s national strategy in the future as well as China enhance strategic value of the cultural industry. 4.2 Changing Attitude from Control and Management to Revival In 1998, the Chinese government reorganized the Bureau of Culture and established the Department of cultural Industry. It meant that the Chinese government s awareness on culture had been changed from the market to the industry. Using the word industry in culture means the Chinese government s attention to the culture pays more attention on the production of cultural goods and service and its circulation and distributions to the market. In the end, the process is centered on the sales to the customers and the economic market. The related policies also stressed on the industrial aspects of culture rather than its cultural aspects. The changing viewpoint represents the cultural policy is more promoting prosperous rather imposing control. 4.3 The Chinese Communist Party and the Chinese Government s Leadership In China, the government encourages the cultural market [6]. Especially, the Chinese cultural industry is leaded by national enterprises, and Beijing is enlarging the number of private and public joint cultural corporations. Depending on the government s progressive reformation of the cultural system, most national enterprises claim free competition [8]. In the future, the major actor of the Chinese cultural industry will gradually move on from the government to the private sector such as individuals and private businesses. 4.4 Enlarging Publicness and Public Interest China aims to reform overall cultural system in the end. Beijing wants to transform national cultural company into business management system. However, as China is a communist nation and is high lightening universal welfare system, it wants to enlarge cultural industry for publicness and public interest.

618 W. Lee and K. Lim 4.5 Supporting Policy China s cultural industry policy is more of supportive rather than control. The Chinese government considers the cultural industry as a promising industry and basic industry in the future. The government sees cultural industry as a national strategic industry and implements various supportive policies to promote it. 4.6 Gradual Opening Strategy The spiritual culture provides foundation for the cultural industry and the cultural industry exercises a great effect on people s mindset. Therefore, the Chinese government is very cautious when it comes to the external opening of the cultural industry. The Chinese government attentively accepted other cultures and cultural industries and made deliberate choice on induction of foreign capital and inviting foreign capital. In order to protect its own cultural industry, China gradually carries into openness policy [8]. 4.7 Promoting Different Industrial Policy in Accordance with Industries In China, there is none unified cultural industry policy which can lead the development of the whole cultural industry [9]. Most industrial policies aim to specific fields, and it has certain regulation so as to developing the fields. It is closely related to the separated development of the Chinese cultural industry for a long time. 4.8 Implementing the Cultural Industry Policy with Regional Traits Through management systems and policies that are suited for each region, most regions is developing cultural industry differently according to their traits [6]. Through developing cultural industry with regional and ethnic characteristics, China aims to enlarge industrial scale and enhance competitiveness. China s industrial policy is different from regions to regions.

China s Cultural Industry Policy 619 5 Conclusion In the current international society, each nation tries to enhance national image through the cultural industry. At the same time, countries make an effort to earn economic benefits from cultural industries. In the globalized world, competitions among nations to become a culture power are deepening. Cultural industry serves as the important foundation for forming national identity. The spiritual culture provides foundation for the cultural industry and the cultural industry exercises a great effect on people s mindset. Since China s entry into the World Trade Organization (WTO), China consistently put an emphasis on the development of cultural industry. The Chinese government accentuated culture as a pivotal factor for the national competitiveness as cultural ability represents for the ethnic vital force and cohesiveness. The Chinese government considers cultural industry as a significant foundation in establishing ethnic identity. Also, China deems cultural industry as a major factor in forming people s mindset. In 2009, after Cultural Industry Promoting plan, Beijing s cultural industry promoting policy was implemented in earnest. For China, cultural industry is not only creating new values, but also resolving weaknesses of existing industries. Cultural industry in China is emerging as a part of soft power strategy. In other words, culture is not only the means for spreading ideology, but also driving forces for the national development. The Chinese leadership not only elevates strategic value of culture industry, but also considers it is closely related to the China s future national strategy. References 1. Park J (2006) China s cultural industry and Korean wave. Asia Pac Trend 30 2. Kim B, Lee J (2012) China s cultural industrial policy and human resources science the reform and openness. Int Labor Brief 15 3. Kim S (2011) Comparing national productivity of China s cultural industry. China Stud 57 4. NAVER http://terms.naver.com, 2013.1.2-2013.1.30 5. Cho C World cultural history. Parkyoungsa 2079 6. Oh H (2012) Research on the policy development and major characteristics of China s cultural industry science the reform and openness. China Center in Busan University, China Research, 13 7. Kwon K (2012) China s nation vision in the 21 century and its strategy for developing cultural industry. Res Contemp China 14(1) 8. Seon J (2011) Characteristics and strategical goal of China s cultural industry. Korean Research Center of Korean University. Korean Studies 37 9. Yang J (2007) On defects in cultural industry policy. Bus Adm (Beining) 3(3) 10. Seon J (2012) Current state and prospect of China s cultural. Sinol J 37 11. Yang G (2011) Research on the Chinese cultural industry and knowledge production. Chin Lit 57 12. Jeong W (2009) Research on market participant in China s cultural: focusing on 3C (company, customer, and competitor). Curr China Res 11:1

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