1.2.3 Steps for Foreign Agencies and Promoters Dealing with Commercial Performances in China (I)

2. Foreign investment in performing art agencies, performing venues and theatres
According to the newly-issued Regulation:
Foreign investors may, together with Chinese investors, set up performing art agencies, performing venue managing companies through means of joint ventures or cooperative management.
To set up joint ventures of performing arts agencies, performing venue managing companies, the investment proportion of the Chinese side shall not be lower than 51% of the total investment; to set up cooperatively managing performing arts agencies, performing venue managing companies, the Chinese side shall have dominant managing power.
Its not permitted for foreign investors to establish performing arts troupes in China either through means of joint venture, cooperation or sole proprietorship, or to managing performing arts agencies or performing venues through means of sole proprietorship.

Put aside investment in China, the following will focus on promotion and management of commercial shows in China, especially format and procedures to put on a ready-made performance in China.

III. 3 basic phases for managing performance projects in China
1. Seek for a qualified Chinese partner; present performance proposal, relevant documents and information; sign letter of intent and/or performance contract
1.1. The Chinese partner must be a legal performing arts agency/promoter, holding permit and business license for conducting commercial performance, and meet the demand of the following qualification requirements:
a. The financial status of the performing art agency/promoter must be on speaking terms of the commercial performance it intends to conduct.
b. The performing art agency/promoter shall have experience in conducting and managing commercial performances for more than 2 years.
c. The performing art agency/promoter shall have no record of violating regulations and rules for at least 2 years prior to conducting the commercial performance.
Chinese government requires a Chinese performing arts agency/promoter acting as the main presenter of an imported commercial performance. It shall be the Chinese presenter who issues invitation to foreign performing troupes, artists and performing arts agencies, applies for official approval of putting on the performance in a commercial way from municipal, provincial or central government, as well as goes through all format and procedures, completes and fulfills all detailed operational requirements for the performance to be shown in China. Therefore, selecting a Chinese partner to the uttermost of your power and intelligence could be the most important task for a foreign agency or promoter who wants to put on shows in China. And a wise choice of the partner guarantees half of your ultimate success.
Tip: When choosing a Chinese partner, find out its previous experience doing commercial performances, especially its capacity of conducting and operating imported/exported performances in China and/or abroad, its financial status, overall qualification and competitive strength. A recommended list of agencies and companies may include:
China Arts and Entertainment Group (Company) (former China Performing Arts Agency) (www.cpaa.cn/english);
Centre for International Cultural Exchange;
China National Culture & Arts Co., Ltd (www.cncac.com/en);
Beijing Gehua Sun Arts and Culture Co., Ltd;
Poly Culture and Arts Co., Ltd;
Century Performance Corporation;
Huahan International Culture Development Company;
Beijing Pegasus Taihe Entertainment International Co. Ltd (www.chinaftv.com);
Beijing Time New Century Entertainment Co. Ltd.;
Beijing Huge Stone Entertainment Co., Ltd;
Beijing Jiahualiyin New Music Entertainment Co., Ltd;
Shanghai Grand Theatre Centre; etc.
1.2. Foreign performing arts agencies and promoters shall prepare the following materials and documents:
a. Title of the performance, name of the performing troupe, basic information of foreign agency/promoter including contact person, address in residing country and detailed contact information.
b. Copy of business license, certificate testifying the qualification as performing art agency and promoter, certificate of financial status issued by banks, record and material showing previous operation of commercial performances.
c. Introduction materials on the performance, including written materials on content and background, photos and pictures, video and audio materials, scenario, complete script of the performance, full lyric of songs, etc.
d. Name list of visiting artists and their passport information, assumed departing cities for visa purpose.
1.3. A performance contract between a foreign promoter and a Chinese agency/promoter shall include:
a. Basic information of the performance to be shown in China, such as when, where, what, how many shows in total, etc.
b. Clarify on rights and responsibilities of both sides, sharing details of tickets sale, etc.
Tip: The Chinese main presenter of the performance shall be responsible to deduct and pay tax for the foreign partner on performance fee, tickets sale and other income related to the commercial performance. The amount of performance fee and all earnings related to the performance for the foreign side mentioned in the contract shall be noted as after tax and net.

2. Get official approval for the performance via Chinese partner, who acts as the main presenter of the show and correspondingly be responsible for general operation of the performance in China including contact, negotiation and coordination with administrative authorities, local governments of the touring cities, performing venues, tickets selling companies, media, other cooperative performing agencies, public security and revenue authority, and issuing of invitation for visa.
2.1. Procedures to get official permission to put on an imported performance is as the following:
The Chinese main presenter of the imported performance shall send application to cultural administrative authority of its province, or autonomous region, or municipality. The local authority, usually provincial cultural department or municipal cultural bureau, shall respond to the application, either approve or disapprove the performance application within 20 days. Once approved by local government, the application shall be furthered by local authority to central government for final examination. Ministry of Culture shall respond to the application within 20 days, and the final approving documents will be publicized on the website of China cultural market at www.ccm.gov.cn.
2.2. The above mentioned format is for imported commercial performance to be staged at professional theatres and concert halls. If the foreign troupe is to perform at an entertainment or recreation site, for instance a foreign jazz band at a night club, or a foreign dance group in a theme park, normally this kind of performance will stick to one place and last for several months, even years, the application will be simply examined and approved by local provincial or municipal government.
2.3. Chinese government has made great efforts to simplify the examine and approval procedures of those imported performances, to ease qualification demands for performing art agencies and promoters, and to make the approving formality more open to the public. Its appreciated that foreign performing art troupes, agencies and promoters provide all necessary materials and documents in advance, thus to shorten the period of time required for the approving formality.
2.4. Foreign performing art agencies and promoters shall note the basic but also universal demands set up by Chinese government concerning the content of the performance, that is, according to the Regulation, the performance to be staged in China shall NOT:
a. against basic principles of the constitution;
b. endanger unity of the nation, sovereignty and territorial integrity, safety of the nation, or injure honour and interest of the nation;
c. have ethical or religious problem;
d. disturb social order, destroy social stability;
e. endanger social moral or fine national cultural tradition;
f. contain obscenity, eroticism, superstition, and violence;
g. contain insult and slander, infract legal interest of other people;
h. of horrific or inhumane manner, devastate body and mental health of the performer;
i. attract audience by disfigurement or deformity of human body, or by showing aberrance of human body;
j. of other cases prohibited by law, regulations and rules.
2.5. Upon the final official approval of the performance, Chinese customs shall provide assistance and convenience for the entry of stage properties of the foreign performing troupe. Chinese main presenter shall issue invitation letter to foreign performing troupe and promoter, and ask relevant foreign affairs authority to send visa notification to Chinese Embassy or Consulate General in that foreign country and ask them to grant the foreign performing troupe and promoter with Chinese visa.