1. Eastday: What are the new entry guidelines for the city's entertainment and culture industry, especially as regards policies to encourage investment from the private sector? Secondly, what is the future development plan for this sector, on a macro basis?

Zhang Zhijing (Deputy Director of Publicity Department, Shanghai Party Committee): You may recall that last January, Shanghai Municipal Government issued an Implementation Outline on 'Shanghai to Accelerate Modern Service Industry Development'. In the outline, the knowledge-based cultural service industry, with high-growth potential, was pinpointed as the growth engine of our modern service economy. Following the requirements of the Shanghai Municipal government, we have completed the three-year action plan to develop the city's culture industry. So I will answer your second question first. Based on information from the Shanghai Statistics Bureau today, we are very confident. According to the outline, by 2010 the local culture service industry is projected to have a revenue increase of 50 billion yuan (US$6 billion). For the three-year action plan from 2005 to 2007, the total turnover of cultural and associated industries is expected to be 220 billion yuan, an increase of 60 billion yuan. The culture service industry is expected to take in 110 billion yuan by 2007, up more than 40 billion yuan. According to our calculations, if the figures grow at an average of 11 percent each year, we will achieve the targets. Director General Liu has just announced that this sector registered an increase in revenues of 15.3 percent last year. Based on this rate of growth, we are very optimistic that we will meet the targets set for 2010 and also those of our three-year action plan.

Your first question referred to private investment in this sector. I believe you are aware that in April this year, the State Council issued the No.10 decree which states clearly the terms on which private capital can enter the culture industry. So I will not elaborate further here. Following-on from the decree, we are in the process of drafting the cultural development blueprint of the 11th Five Year Plan. Towards the end of this year we will have drafted an investment guide relating to the local cultural industry, which is a very important step. It will offer guidance to private companies that wish to invest, and will be made public by year-end. Tomorrow morning, the Shanghai Personnel Bureau will host a press conference relating to the demand for skilled personnel in several key sectors, and I will be providing information on the type of skills we need in the cultural sector. You are welcome to attend the press release tomorrow morning.

2. Shanghai Afternoon Post: My first question is for Mr. Zhu of the Shanghai Press and Publication Administration: what are the measures implemented by his Department to protect copyrights? Second question to Mr. Chen of Shanghai Municipal Cultural Relics Administrative Bureau: what are the measures for the oversight of the local cultural relics market?

Zhu Junbo (deputy director of the Shanghai Press and Publication Administration): My Department has focused on three aspects of this over the past year: firstly, cracking-down on pirated CDs and videos; secondly, taking measures against software pirates; thirdly, clamping-down on pirated textbooks and reference books. These measures, allied with daily supervision and publicity on copyrights, have raised the legal awareness of local citizens and companies. In this way Shanghai has done a better job in the field of copyright protection. Certainly, pirating is a very complex issue, and it is impossible to solve it overnight. However, generally speaking, Shanghai has accomplished more than other Chinese cities. Shanghai Press and Publication Administration was recognised as the pioneer in protecting authorized software by the Intellectual Property Post in April last year. From 2003 to 2004, we were also awarded a prize for outstanding contribution to the protection of intellectual property-rights relating to software by the US-based Business Software Alliance. One award is from home and the other is from overseas, which indicates that we have done a good job. Of course, there is much more to do, and the media is welcome to monitor our performance.

Chen Xiejun: We follow two legal guidelines with regard to the management on the cultural relics market. One is the newly issued state law on cultural relics protection and the other is the Shanghai government's management protocol on the cultural relics business. Fine-tuning the government measures is an on-going process.  To standardize market procedures and ensure an orderly market are our two principle concerns. After nearly four years' study and reform, the cultural relics market is developing in orderly fashion from good legal foundations. There are 38 companies engaged in the business in Shanghai, 25 auction-houses, 46 wooden-artifact traders, and 8 trade-fairs, each with over 600 boutiques. It's not a large sector in the context of the wider economy, but it is important and developing positively as the recent 2005 Spring Auctions showed.  For example, more than 1,000 bids worth 230 million yuan were transacted by Shanghai-based Duoyunxuan Art Auctioneers, mostly for Chinese paintings and calligraphy. Past experience shows that there can be a bright future for Shanghai's cultural relics market as long as we ensure well-regulated development.
 
3. Shanghai Morning Post: I've two questions. The first is about food safety. It was reported recently that some aquatic products containing malachite green, which is harmful to people's health, had entered the local market. I'd like to know whether the Shanghai government has been aware of this issue, and What will it do to ensure food safety, which is of great concern in the summer months. My second question relates to the real estate market. It's been reported that the government will levy land-appreciation tax on villas. Is this true, and Will it also cover non-villa properties?

Jiao Yang: First of all, something about food safety. The reporter asked a question, wondering whether there is a substance called malachite green in some aquatic products in our markets. We aren't familiar with the substance, but we've noticed some reports in the UK. After consulting the relevant authorities, we've learnt that the Food Standard Agency issued food safety alert notifications to European countries that a supermarket in Britain was selling fish containing malachite green, a chemical banned in aquatic products because it is hazardous to health. Local food and drug authorities have monitored the situation and launched an emergency overhaul of local aquatic markets, supermarkets and restaurants that sell fish dishes. They'll pinpoint the source and punish those responsible should they find anyone illegally using this substance.

Food hygiene is problematical in summer and food-poisoning caused by bacteria is also quite likely to happen in this season. There have been plenty of reports related to this recently, and We've noticed that most of the food-poisoning cases since late June related to groups. Group poisoning cases are caused by work canteens who don't process their food properly, steamed rice-providers who have problems, wedding-dinner providers from rural areas and unlicensed fast food stall operators. The management measures announced by the director recently are an important initiative, and aim to ensure good management by the setting up of long-term mechanisms to eliminate the sources of food poisoning.

Food safety administrators are intensifying their work in four areas. Firstly are the food providers, especially those supplying meals for groups or work units. There will be an overhaul in July and August targeting canteens and boxed-meal distributors. Those who violate rules and endanger food safety will be dealt with severely.

The second measure is to reinforce the sanitation supervision of canteens on construction sites.  While food and drug authorities at all levels will strengthen the daily supervision of the licenses at these canteens, construction administration departments will include daily canteen supervision into their project quality and security management oversight.  They will manage it strictly in accordance with the city's regulations in this regard.  The sanitation and construction authorities will coordinate and cooperate to improve their work in the effort to eliminate the possibility of food poisoning cases.

The third measure is to increase random inspections.  Those that fail the checks will be fined by the food and drug supervising authorities, as stated by law,  and will be required to rectify the problem. Repeat-offenders will have their licenses withdrawn by the authorities.

The fourth measure is to launch special checks on cooked food.  Targets in the near future are cooked food counters at supermarkets and hypermarkets, unpacked food products and the catering industry generally.  A food management system will be set up with the supermarkets to ensure the security of the city's key food supply channels for the long-term.

In a phrase, to ensure safe food is our priority.  It is one of the government's key responsibilities in public service management and market administration.  Officials at all levels should intensify market supervision in a bid to safeguard citizens' good health and safety.

The second question is about the housing industry.  As far as I know, there is no such new policy in this area.

4. 21st Century Business Herald:  Can you give an introduction to Shanghai's intentions this year with regard to its cultural management system reform?  Also, I want to know how the reforms are progressing with Shanghai's publication sector and the public-benefit-oriented cultural institutions.  What are the new investment and financing policies in these sectors?

Zhang Zhijing: Shanghai, as one of the national trial regions, has adopted many initiatives this year with regard to cultural system reform.  Its publishing sector is undergoing reform in line with the national trend.
To answer your second question, I think I should approach it from the three sectors of printing, distribution and publishing. 
In the printing sector, reforms have already been completed to make it market-oriented. 
In the distribution sector, the central authorities announced the plan two years ago to open it up in accordance with the WTO agreement, from retailing through wholesale.  In the light of this plan, Shanghai Xinhua Distribution Group restructured its shareholdings to become a mixed-holding enterprise after selling 49 percent of its equity.  Now the reform is progressing smoothly, with the group establishing a modern enterprise management system and setting up a board of directors and a supervisory board.  It also publicly recruits professional managers.
As for the publishing sector, the Shanghai Literature & Art Publishing Group and the Shanghai Century Publishing Group will, as planned, soon announce details of the reform of their ownership structures.

As for your third question, Shanghai is making big changes in its investment and financial policies in the cultural sector.  We welcome, in encouraging the whole of society to join in our cultural development, all types of enterprises (including privately-owned firms) to invest here.  With an open attitude, we have some favorable policies to attract investment to Shanghai's cultural sector.
In the government's management of this sector, we have also instituted changes.  Shanghai's first move is in the area  of state-owned cultural assets:  the city's publicity department will act as the consignee in managing the assets.
In managing, we will pay due regard to the public benefits accruing from cultural products, which, unlike other commercial industries, cannot see profit-maximization as their ultimate goal.

5. Dragon TV: The China State Administration of Taxation announced recently that the country is currently collecting individual income tax on the trading of second-hand homes.  The Shanghai Taxation Bureau says that the city only collects this tax on trades of homes not used as a primary residence.  I'd like to know why this is, and does the city intend one day to collect individual income tax on trades of second-hand homes used for primary residence ?

Jiao Yang: It's a very specific question perhaps more suitable for leaders of the taxation bureau to answer. The spokesperson of the State Administration of Taxation systematically and comprehensively explained our national policies on taxation issues relating to individual property trades.  Our local municipal taxation bureau emphasized that no adjustment was made to these policies, except as relating to the sales tax.  As to the taxation policy on trading of houses for primary residential purposes or otherwise, you'd better refer to the relevant taxation administration for further information.

6.Australian Financial Review: Could Director General Zhu Junbo please explain the situation regarding participation of foreign capital in the domestic newspaper-publishing market?

Zhu Junbo: According to the national Regulations on the Administration of Publishing, foreign investors cannot participate in our domestic newspaper industry.   However, to fulfill our responsibilities as a member of the WTO, foreign capital can participate in both the printing and distribution functions of our newspapers.  Detailed information on this issue is available on the relevant websites, or you can come to the copyright administration bureau for reference.

7. China Business News: My first question is for Director General Liu Weizhong from the Municipal Bureau of Statistics. In 2004, What were the respective contributions of public and private capital to the development of the cultural industry in Shanghai? The second is for Director General Zhang Zhe of the Shanghai Cultural, Radio, Film and TV Administration Bureau.  Statistics from the Bureau show that the number of books borrowed from local libraries last year was 13.411 million, and that Shanghai people pay just less than 100 million visits to libraries each year.  Could you please compare these two figures with those of developed countries and regions?  Thank you.

Liu Weizhong: The data I publish here are the preliminary statistic numbers from the materials of the economic census 2004.   Though the city has completed the census, its result should be issued by the National Bureau of Statistics of China adhering to the stated processes after being approved.
The journalist from the China Business News wants to know the ownership classification of the cultural industry, or the outputs of these ownerships.
We will provide you with detailed data once the results of the economic census 2004 are issued by the certain administration.  Today, we can just provide these two figures of local cultural industry.  Thank you.

Zhang Zhe: I am going to make an explanation for the figures I issued just now.  Shanghai owns more than 28 of libraries.  However, the public ones we are talking about now refer to those of city and district level.  Besides these, there are hundreds of libraries in local universities, colleges, institutes and communities.  Visits paid to these libraries are not included into our statistic. 
People may feel that the numbers of visiting and books borrowed that are counted in a range of 28 libraries are still not satisfying enough.  I think another main reason for this problem is that with the development of modern Internet techniques, many people consult information on the Internet instead of going to the libraries.  And many go to the libraries to do Internet surfing.  These visiting are not counted.  I think these two reasons may explain why the numbers of the visiting and books that are borrowed are so small.

8. Oriental Morning Post: A question for Mr Zhu. You have just released statistics for 2004 relating to the seizure of pirated goods. According to the statistics, pirated books made up the highest proportion of goods seized while unauthorized audio and video products represented the smallest percentage. This is inconsistent with our daily experience. How is it that confiscated discs represent the least in numerical terms? Secondly, you said the number of seized audio and video products was more than 4000. I don't quite understand you. Could you give more details? Thirdly, what is the scope of the challenge facing us in the fight against video piracy, and what are your countermeasures?

Zhu Junbo (vice-director of Shanghai Press and Publication Bureau): The statistics given are those of our bureau and do not include pirated goods seized by other government departments. Since people receive greater exposure to audio and video piracy, and DVD stores are widespread throughout the city, you may find the proportion (17.79%) of fake discs in the overall seizures as too small. In fact, software and textbook piracy are also serious.
Illegal audio and video copying is a big problem, and we launched special campaigns against it last year. In Shanghai, we should combat audio and video piracy by focusing on the following three aspects. Firstly, a long-term commitment is necessary to educate the public about the value of obeying and respecting the law. Secondly, government departments (for example, the copyright bureau, the censorship authority and the administration of industry and commerce) should mount a crackdown on piracy. Thirdly, the law can help in the fight against piracy. Last year, the supreme court and the supreme people's procuratorate interpreted the relevant laws so as to make the punishment of property-rights violators more forceful. In the long run, disc piracy will disappear gradually through our efforts.

9. Youth Daily: The first question is for Director Liu of the statistics bureau. Today's press conference is held especially for announcing government figures on cultural industries, a national first. Does the government have any plan for enhancing the quality of statistical analysis of cultural industries? The second question is for Director Xu Qiang. You mentioned a "morning checkup" system when briefing us on the city's new regulations relating to the catering industry. I don't quite understand this concept. Could you provide more details? Thank you.

Liu Weizhong: Shanghai began compiling statistics on the cultural sector earlier than many other domestic cities. Our research focused on material objects. From 2003, we explored new ways to measure the development of the industries in collaboration with other government departments. Now we use profit and revenue growth to judge their development and strength, and to assess their contribution to the city's economy. Therefore, the statistics released today are our summaries of the industry surveys for 2004. A working group has been appointed to oversee the collection of the raw data used for compiling cultural-sector statistics. The group is under the leadership of the local information services department, who along with the statistical bureau have set detailed guidelines for the project. In order to improve the accuracy and scope of data collected, we are trying to ensure that the various data sets cover all aspects of the cultural sector. I believe the statistics will be more comprehensive through the joint efforts of the departments concerned. In order to fulfill the requirements of the information services department, we will release the sector's statistics and analysis concerning its development around June or July every year.

Xu Qiang: The concept of "morning checkup" is defined in the second paragraph of Article 10 of the regulation: "Local catering companies should set up a mechanism for holding routine health checks for their employees in the morning. Once a worker is found to be suffering from an infectious disease (e.g. cough, fever, diarrhea and skin diseases like festering sores), they will not be allowed to process or prepare food". In a word, employees showing symptoms of such diseases when they arrive at work in the morning will be banned from working.