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Foreign Capital to Gain Greater Access to Chinese Media
China published new rules governing foreign-invested book, newspaper and magazine distribution Thursday, China Daily reported Friday.

The new rules, issued by the State Press and Publication Administration (SPPA) and to take effect on May 1, provide specific guidance on the establishment of foreign-funded book, newspaper and magazine distributors, the newspaper said.

In accordance with its World Trade Organization commitments, China opened its book, newspaper and magazine retail business to foreign investors in December last year, although this is still limited to certain areas of the country.

An official with the SPPA said it will accept and handle applications from overseas investors once the rules go into effect.

The rules set out requirements on application procedures, registered capital, and business scale of foreign invested distributors.

A registered capital of 5 million yuan (US$604,000) is needed for retailing companies and 30 million yuan (US$3.62 million) is required for wholesalers, the newspaper said.

The regulations regarding wholesale companies will take effect on December 1, 2004, when the sector is opened to foreign investors, the SPPA officials was quoted as saying.

(Xinhua News Agency April 4, 2003)

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