1. China Business News: I have several questions for Ms Zhang. You just said the trade deficit for cultural goods hass narrowed, but we found imports of performances and books still surpass exports. What achievements have we accomplished in export? Can you reveal some details about the study on culture export policy?

Zhang Zhijing: Thanks for your question. We will invite Sun Yong, director of the Shanghai Press and Publication Bureau, to answer the question.

Sun Yong: Western countries have more advantages in book markets, so it’s a hard task to promote Chinese books in overseas countries. Shanghai is responsible to contribute more in this aspect. We are taking several steps now. Firstly, the government allocates subsidies for publishing houses and publishing groups to cut their costs when selling copyrights to overseas publishing houses. The government began awarding those who sell more copyrights than others in 2005.

Secondly, we realize that it mainly depends on ourselves to promote Chinese books in global markets. When English books and Russian books enter China, Chinese people translate most of these books into Chinese. Western publishing houses may translate some Chinese books, but it’s unrealistic to let them translate a lot. So we began a project called“Culture China”in 1999 and now 100 English-language books about China and Chinese history are being published overseas by Shanghai this year, and more than 60 books in the series are now available in Western bookshops and at online retailers. For example, nearly 20,000 copies of English-language“China’s Treasure”have been sold, as well thousands of others including a book written by Chen Danyan that features Shanghai, some children’s books, and books about Chinese ancient arts and cultural heritage. We are gradually developing the project, which has won supports from the country’s authorities and Shanghai culture development funds. In overseas markets, there are dozens of“Culture China”sales spots.“Shen Congwen and West Hunan”has won art award at a the US BEA book exhibition. We will hold a big event in the United States to promote Chinese books from November to December. The“Culture China”series will enter 300 university libraries in the US. We are confident to promote Chinese books in the global market.

Chen Qiwei:Thanks for Mr. Sun’s introduction.

2. Mainichi Broc System: I’m from Japan’s Mainichi Broc System’s Shanghai branch. I have a question for Mr. Chen Xiejun. Japanese people used to leave a lot of historic buildings in Hongkou area. I found parts of the buildings have received proper protection while some others face the possibility of dismantlement. Is the local government carrying out measures to manage these buildings, or is there a special department in charge of them?

Chen Xiejun: The State Council named Shanghai a historic and cultural city in1986. As a department in charge of historic relics, we have paid much attention to the historic buildings and earned outstanding achievements.

Shanghai has taken several steps in protecting cultural relics. Firstly, the city has 19 state-level units, 112 city-level units and 291 district-level units to protect the city’s 398 historic buildings. Secondly, the protection of old buildings is conducted by the local culture management committee, local urban planning bureau and land sources management bureau. The city has set up an office to protect the historic scenes and buildings and fulfilled certain achievements.

3. Jiefang Daily: You said that the cultural innovation sector will play a more important role. Is there any statistics to show the sector’s status? Can you reveal some preferential policies in the three-year action plan for the cultural innovation sector?

Zhang Zhijing: Thanks for your question. The National Bureau of Statistics issued a document about the cultural industry in 2004. The country has an integrated statistics method for the cultural industry, so we can conduct scientific comparison after years of accumulation. We are still preparing for the statistics for cultural innovation sector. For example, a book contains ideas from its writer, cover designer and illustrator. We plan to categorize the sector because innovation brings highly added value in the whole chain.

The blueprint for the three-year plan hasn’t been finished and we will release the plan as soon as possible.

4. Shanghai Evening Post: My question is about the activity center in residential areas. I heard that Shanghai has 80 activity centers, and the figure will grow to 100 at the end of this year. I found some facilities in these centers were leased, which changed the function of the center. Does the government carry out measures to manage this sector? Thanks.

Zhang Zhe: The establishment of these activity centers will perfect the city’s culture facility system. The Shanghai Administration of Culture, Radio, Film and TV is in charge of the promotion and operation of the centers.

We attached much importance to the use and management of the activity centers and studied a lot in the recent couple of years. We have carried out effective measures, including mapping out regulations, to maintain the original function of cultural centers and activity centers. We have three tasks in the next step. Firstly, city-level cultural service institutes, including Oriental Propaganda and Education Service Center, Oriental Rostrum, Oriental Community School Service Center, Oriental Community Information Management Center and Oriental Community Arts Guide Center, have shared cultural resources with district-level and basic-level units and received welcome. We will set up an integrated distribution system to enable district-level and county-level cultural units to share city-level and district-level units’distribution system in the next step. Secondly, we will focus on the establishment of a mechanism to promote sustainable development of public cultural service. In recently years, the city has issued more than 10 regulatory documents on culture to regulate the local cultural industry. Authorities are studying a new document following the“Suggestions on improving public cultural service system”issued by the CPC central committee and the State Council. Thirdly, we will map out service standards and regulations. In the first half of this year, we have issued“Service Standards for Shanghai’s Public Libraries,”which is the first of its kind across the country. Meanwhile, we will enhance law enforcement in the cultural industry to secure the implement of“Regulation on Public Cultural and Sports Facilities”issued by the State Council. We will rely on the media and local residents to enhance the supervision of public opinions.

The issuance of the system will play an active role in making full use of the community activity centers. Although there are different ideas which said public cultural facilities can be used for commercial purpose in some overseas countries, I think ours are different from overseas. In overseas countries, they have planned to use some public facilities for commercial purpose when building the facilities, while we never consider using them commercially. So we won’t allow public cultural facilities to be used commercially. We will reclaim leased facilities by mapping out a series of regulations.

5. Xinmin Evening News: I have two questions. Mr. Zhu Zhanghai said the development gaps between sectors in the cultural industry are narrowed. Can you tell me the reason? My second question is: you said radio, television and film service sector develop the fastest while arts service develops the slowest. But the spokesperson only released the reason for the fast development. What is the reason for the slowest-developed sector?

Zhu Zhanghai: According to the latest statistics, the gap between different sectors in the cultural industry has narrowed, which indicates that the development is balanced. The well-developed sector grew faster than others, and some sectors, especially traditional arts service sector, grew slower. However, network cultural services developed faster. The imbalance exists not only in the cultural industry but also in other industries. But the gap has narrowed in recent years via the implementation of some new policies. We can offer you detailed statistics on small sectors of the cultural industry. The statistics we publish now are about medium-sized sectors.

Why does the arts service sector develop the slowest? The statistics shows that this sector grew 7.9 percent in 2006 from a year earlier after gaining 25.6 percent in 2005, which is comparatively slower partly due to its low base.

6. 21th Century Business Herald: I have a question about Shanghai Xinhua Media Co. Since the company was listed, it has absorbed capital from Shanghai's Jiefang Daily Press Group. Does the Publicity Department plan to build the company into a platform to finance Shanghai’s major newspaper and media, or inject capital from Wenhui-Xinmin United Press Group into the listed company?

Zhang Zhijing: Thanks for your question. Xinhua Media Co has drawn the public attention since its back-door listing last year. The issuance of new shares hasn’t ended until getting regulatory approval from the securities watchdog. Listed companies have their own targets and will develop gradually. Plans for the next step will be mapped out after the issuance. Thanks.

7. Science and Technology Daily: Can Ms. Zhang introduce the contribution high-tech makes to the cultural industry? How have we developed the cultural industry by using high-tech? What is the key aspect in the future?

Zhang Zhijing: This question deserves our notice. We deem that two elements are important to the cultural industry: innovation and science and technology. It’s hard to develop the cultural industry without either of the two elements. In Shanghai, it’s impossible to develop the cultural industry at a fast pace with only innovation. When I worked for the Jiefang Daily in 1997, I joined a Chinese news delegation to observe network development in western countries. At that time, networks hadn’t develop well in China and even western countries hadn’t found a successful business mode to earn money. While 10 years passed, Chinese people can play games online. Online games spread in China within several years. Online games are the business mode for high-tech networks in China. E-commerce is also successful in China and needs further development.

As a metropolis, Shanghai’s cultural industry should have its own feature: introducing high-tech. Some Chinese Websites have won a lot of clicks and people should log on them to search for news on the Chinese economy, stocks and companies. The development of new media, such as satellite TV equipped in vehicles and mobile phone TV, has become popular, while years ago these technologies were hard to imagine. The mobile phone was only a communication tool in the past, but now it can spread more kinds of messages. High-tech stimulates the development of the cultural industry, and innovation is the spirit of culture. The cultural industry can be well developed with the combination of the two elements.

The country has mapped of many documents on the cultural industry, including tax-exemption policies on the high-tech industry and newly-developed cultural sectors, as well as preferential policies on exports of cultural products. We are gradually introducing cultural talents into the city by a“green channel.”The development of Shanghai, especially its culture, depends on high-tech, innovation and talents.

8. Yomiuri Shimbun: Today’s new release is about the cultural industry, which can be develop in an open society. But I find the media hasn’t reported a lot about the pension fund scandal while the court has begun trials. I think it’s a pity. Do you think it is a contradiction?

Chen Qiwei: I have said that today’s news release is about Shanghai’s cultural industry development. Your question does not involve this sector. You can contact related departments to learn about this case. Thank you.

It’s an important responsibility for the local government to improve the statistics about the cultural industry. Authorities will release the figures regularly every year to inform the public of the development of the cultural industry. That’s all for today’s news release. Thank you.