FEATURES OF FINANCING CHINA'S CONTEMPORARY CULTURAL SPHERE.

During the first stage of the cultural system reform Chinese investment in culture was based on the state funds. After the XVI Congress of the CPC (2002) private investment began to develop. Several documents were developed. In 2005 the State Council approved '' Decisions on the Private Capital Investment into the Culture Sphere''. The '' Decision'' stated that private cultural enterprises have the same facilities as the state-owned enterprises when issuing permits for projects. But the '' Decision'' prohibited entry of private capital in the media industry and agitation. In August 2005, the Ministry of Culture issued "Some Views on the Involvement of Foreign Capital in the Sphere of Culture''. In November 2005, the Ministry of Culture, Ministry of Finance, Ministry of Personnel, and the State Administration of Taxation jointly issued the "Opinions on the Development of the Private Art Groups in Literature and Art". These documents defined the quality and level of foreign capital in the sphere of culture. In November 2007, the Ministry of Culture put forward "Opinions on the Promotion, Support and Management of Non-State Enterprises in the Development of the Cultural Industry''. The document stated that it was necessary to allow private enterprises to participate in the cultural industries, and create a favourable policy and market environment for their participation in the development of cultural industries. At the same time, Chinese leadership retains the central position of the state cultural enterprises. The document "Some Views on the Involvement of Foreign Capital in the Sphere of Culture'' says that if the Chinese side holds more than 51% of shares or Chinese representatives take leadership positions, it is allowed to establish a joint venture specialized in book printing or CD copy, or joint ventures in the field of theatre and film industry, etc. They can participate in privatizing state publishing houses. At present private Chinese enterprises become an important source of investment in many cultural spheres. According to statistics in 2003 there were 197 production companies, 60 of them were private partnerships. In the first half of 2004, more than 100 movies were produced, 80% were taken by private companies. Every year private companies invest more than 2 billion yuan to produce 10 thousand series of television serials. Large corporations or project of crossborder investment has not appeared yet because the development of the cultural industry in China has started relatively recently.