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The establishment of a ministerial-level joint conference system to support the country's animation industry development has been approved by the State Council, according to a Guangzhou Daily report on August 7. Ten central government departments will jointly work to give priority to the animation enterprises' listing and financing.

 

Those involved are the Ministry of Culture, Ministry of Education, Ministry of Science and Technology, Ministry of Finance, Ministry of Information Industry, Ministry of Commerce, State Administration of Taxation, State Administration for Industry & Commerce, State Administration of Radio, Film And Television and General Administration of Press and Publication. The Ministry of Culture will take the lead in this initiative.

 

China has more than 350 million teenagers and they represent the biggest market for animation products. Data from the Development Research Center of the State Council shows that in 2006, just for domestic cartoon electronic products, the market demand would reach 12 billion yuan (US$1.5 billion). And in the coming three years the animation market would increase by 110 percent and consumption reach 700 billion yuan (US$88 billion).

 

Ministries aim to create several powerful animation enterprises with international competitive capabilities and foster a group of energetic and professional small and mid-sized companies. It's hoped that these businesses would arrive on the world animation stage in five to ten years.

 

The ministries will strengthen their support with finance and encourage the animators to set up modern management systems. They will help eliminate the obstacles which appear when social capital enters the animation industry and encourage large national enterprises to become involved by investing. The policy banks will provide financial support to qualified enterprises. The animation businesses which have the conditions will be given the priority of being listed on the market.

 

The central financial department will also establish a special fund for the animation industry which will be designed to support the production of superior comic and original products, constructing a national material database and establishing a public technology service system as the key to the industry's development chain.

 

Enterprises recognized by the responsible State Council departments can apply to gain access to the favorable value-added and income tax policies when they independently produce animation and cartoon products. The rate of sales tax on them is only 3 percent for the time being.

 

(China.org.cn by Zhou Jing, August 9, 2006)