On May 24, 2018, China filled the top positions at the State Bureau of Film (Film Bureau) and State Administration of Press and Publication (SAPP). Both appointments fill vacancies created by the dismantling of the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT) and continue apparent Communist Party of China (CPC) efforts to assert greater control over the film and media industries.

Propaganda Department Officials to Lead Film Bureau and SAPP

Mr. Wang Xiaohui has been appointed to lead the Film Bureau, while Mr. Zhuang Rongwen will lead SAPP. These developments follow the earlier appointment of Mr. Nie Chenxi, who ran SAPPRFT prior to its elimination earlier this year, to lead the State Administration of Radio and Television (SART).

With these appointments, all three leaders of China’s principal film and media authorities (Wang, Zhuang, and Nie) now concurrently hold positions in the Propaganda Department of the CPC. The same is true of Mr. Shen Haixiong, the top official for the Central Station for Radio and Television (CSRT). Such dual postings for these officials, and the government reorganization in March, appear indicative of CPC efforts to more tightly regulate and exert influence over these key industries. These appointments and reforms are likely to manifest in a number of ways moving forward, perhaps including tighter censorship of films and other media and stricter adherence to Party ideology.

Background on Reform of Film, Television, and Related Authorities

Among other substantial institutional reforms initiated in March, Chinese authorities eliminated SAPPRFT and announced a major restructuring of government oversight over film, radio and television, and press and publishing at the national level. Such reforms resulted in three new authorities in lieu of SAPPRFT:

  • SART: SART was established as a new agency directly under the State Council to regulate radio and television matters other than broadcast news. However, as such radio and television oversight was under the State Council before the restructuring, SART’s similar organizational placement may indicate possible continuity of the regulation of such radio and television matters.

The agency will be responsible for functions including drafting and overseeing implementation of policies for the radio and television industry, managing content review and censorship of radio, television, and online audiovisual programs, supervising the importation of radio and television programs, and coordinating and promoting the exposure of Chinese radio and television programs worldwide. The foregoing applies whether such content is live action or animated.

  • Film Bureau: Rather than the prior approach that placed theatrical film-related authorities within an agency directly under the State Council, the newly-formed Film Bureau is now within the Propaganda Department of the CPC. For reference, another example of a state function that is somewhat analogously under the direct control of the CPC is Internet/cybersecurity regulation.

Following the government reorganization, the Propaganda Department will be responsible for theatrical film-related functions such as managing film administrative affairs, guiding and supervising film production, distribution, and exhibition, coordinating content review and censorship of films (both live action and animated), arranging festivals and other film events of national significance, and carrying out international cooperation including film co-productions.

  • SAPP: Similar to changes implemented for film, the press and publishing functions of SAPPRFT are now within the Propaganda Department and will be carried out by the newly-established SAPP. This office also takes the title National Copyright Administration of China (NCAC).

Press and publishing-related functions of the Propaganda Department now include drafting and overseeing implementation of policies for the press and publishing industry, coordinating content review and censorship of publications (including those containing cartoons), and supervising the importation of such publications.

Copyright-related functions of the Propaganda Department include registering certain copyrights at the national level and administration of related matters. Specifically, works (excepting software) owned by non-mainland Chinese parties are registered at the national level, while such works owned by mainland Chinese parties are registered locally. The Copyright Protection Center of China or its local offices will handle copyright registrations relating to software.

Additionally, the Ministry of Culture and Tourism (MOCT) will continue to have a role in coordinating content review and censorship of online games. MOCT will also continue to regulate music that is produced for or disseminated over the Internet. However, other forms of music fall within SAPP’s purview. Industrial policy for the animation industry also remains under MOCT’s management and supervision.

Radio and television broadcast news was previously regulated by several authorities. Such oversight is now carried out by the newly-formed CSRT. CSRT’s organizational placement is somewhat unique among the authorities discussed in this client alert: while established directly under the State Council (like SART and MOCT), CSRT reports to the Propaganda Department (like SAPP and the Film Bureau). This hybrid approach is not without precedent. For example, the Cyberspace Administration of China (an agency established under the State Council) has reported to the CPC’s Office of the Central Leading Group for Cyberspace Affairs for some time.

Local Implementation

Chinese authorities have not yet released their plans for implementing these reforms at the local level. Until those plans are finalized and made public (likely late in 2018), we anticipate continued uncertainty about the current and future organizational structure of local authorities. For example, some national level authorities have identified information about local branches on their respective websites (e.g., SART, NCAC). In other instances, some local authorities have advised that the longstanding organizational structure (which groups functions relating to press, publication, radio, film and television all together) remains intact at the local level.

Overview Chart

The following chart summarizes at a high-level certain details about the foregoing agencies, current as of the date of this alert:

AGENCY NAME CHIEF OFFICIAL CONCURRENT CPC POSTING ORGANIZATIONAL PLACEMENT RELEVANT SPHERE OF OVERSIGHT
SART Mr. Nie Chenxi Deputy Minister, Propaganda Department State Council Regulate radio and television matters other than broadcast news
Film Bureau Mr. Wang Xiaohui Deputy Minister, Propaganda Department CPC Propaganda Department Theatrical film-related oversight, including film co-productions

SAPP/

NCAC

Mr. Zhuang Rongwen Deputy Minister, Propaganda Department CPC Propaganda Department

Press and publishing-related oversight;

National-level copyright registrations and administration

MOCT Mr. Luo Shugang n/a State Council

Content review and censorship of online games;

Regulate Internet music

CSRT Mr. Shen Haixiong Deputy Minister, Propaganda Department Hybrid (under State Council, but reports to CPC Propaganda Department) Regulate radio and television broadcast news

 

Photo of Timothy P. Stratford Timothy P. Stratford

Tim Stratford is senior counsel and a member of the firm’s International Trade, Corporate, and Public Policy Practice Groups. He is also serving as Chairman Emeritus of the American Chamber of Commerce in the People’s Republic of China. Tim’s practice is focused on…

Tim Stratford is senior counsel and a member of the firm’s International Trade, Corporate, and Public Policy Practice Groups. He is also serving as Chairman Emeritus of the American Chamber of Commerce in the People’s Republic of China. Tim’s practice is focused on advising international clients doing business in China and assisting Chinese companies seeking to expand their businesses globally. Except for the five years he spent in Washington, DC as Assistant U.S. Trade Representative (2005-2010), Tim lived and worked continuously in the greater China region from 1982-2023, including for twelve years as managing partner of the firm’s Beijing office.

As Assistant USTR, Tim was responsible for developing and implementing U.S. trade policy toward mainland China, Taiwan, Hong Kong, Macao and Mongolia. He worked closely with other senior U.S. and Chinese officials from numerous government departments and agencies to address problems encountered by companies engaged in bilateral trade and investment and co-chaired a number of important bilateral working groups and dialogues established under the U.S.-China Joint Commission on Commerce and Trade and the U.S.-China Strategic & Economic Dialogue.

Prior to serving at USTR, Tim was General Counsel for General Motors’ China operations, where he was a member of GM’s senior management team in China and oversaw the company’s legal and trade policy work. Tim also served previously as Minister-Counselor for Commercial Affairs at the U.S. Embassy in Beijing and as three times as Chairman of the American Chamber of Commerce in China. He is a graduate of Harvard Law School and Brigham Young University, and is fluent in Mandarin and Cantonese.

Photo of Christopher Adams Christopher Adams

Christopher Adams advises clients on matters involving China and the region. A non-lawyer, Chris served as the Senior Coordinator for China Affairs at the Treasury Department. He coordinated China policy issues across the U.S. government, led negotiations with China on a broad range…

Christopher Adams advises clients on matters involving China and the region. A non-lawyer, Chris served as the Senior Coordinator for China Affairs at the Treasury Department. He coordinated China policy issues across the U.S. government, led negotiations with China on a broad range of trade and investment issues, managed the highest level U.S.-China economic policy dialogues for the Obama and Trump administrations, and advised the Treasury Secretary and other cabinet officials.

Chris helped develop and implement U.S. trade policy toward China with the Office of the United States Trade Representative (USTR) from 2007 to 2015 as Deputy Assistant U.S. Trade Representative for China Affairs, Senior Policy Advisor to the Deputy USTR, and Minister Counselor for Trade Affairs at the U.S. Embassy in Beijing, USTR’s first representative in China.

Chris directed government affairs, public relations, and corporate marketing in China for the Eastman Kodak Company from 2001 to 2006 as Chief Representative for China; Vice President, North Asia Region; and Director, Olympic Programs. During this time, Chris was elected to four consecutive terms as a Governor of the American Chamber of Commerce in China and served on the Chamber’s Public Policy Development Committee.

Chris assisted companies with market access issues as a commercial officer in the U.S. Foreign Commercial Service in Beijing and Taipei, from 1993 to 2001. Before joining the Commerce Department, Chris managed media relations and information programs with the American Institute in Taiwan and directed business advisory services at a private trade association in Washington, DC.