Foreign Party May Hold Controlling or Dominant Stake in Sino-Foreign Joint Venture Printing Enterprises

[ppzhan abstract]

] The General Administration of Press and Publication recently issued the National

Replication Demonstration Enterprise Administration Measures, proposing that for Sino-foreign joint venture and Sino-foreign cooperative publication printing enterprises recognized as demonstration enterprises, the foreign party may hold a controlling stake or a dominant position, breaking with the previous requirement that such enterprises must be controlled by the Chinese party. The Measures took effect on January 1, 2012.

The General Administration of Press and Publication recently issued the Measures for the Administration of National Printing and Replication Demonstration Enterprises, proposing that for Sino-foreign joint venture and Sino-foreign cooperative publication printing enterprises recognized as demonstration enterprises, the foreign party may hold a controlling stake or a dominant position, breaking with the previous requirement that such enterprises must be controlled by the Chinese party. The Measures took effect on January 1, 2012. They explicitly set out the goal of building about 100 national printing demonstration enterprises and about 10 national optical disc replication demonstration enterprises across the country by the end of the 12th Five-Year Plan period.

The Measures specify eight conditions that demonstration enterprises must meet: compliance with relevant laws and regulations, with no administrative penalties imposed by the press and publication administrative authorities in the past three years; key economic efficiency indicators and overall labor productivity ranking among the top of the same domestic industry, with profits realized in the past three financial audit years; key production equipment at the advanced level of the industry; R&D investment reaching a certain proportion of sales revenue, and having established an enterprise technology center or R&D institution at the national or provincial level; having established an advanced and scientific management mechanism, with no major workplace safety accidents in the past three years; actively carrying out green production, with printing enterprises able to meet the requirements of the national green and environmentally friendly printing standards;

having a strong management and technical R&D team; and the province (region or municipality) where the enterprise is located having provided practical and feasible support policies and measures for the establishment of demonstration enterprises. Noteworthy is that many of these conditions come with more detailed numerical targets. To encourage printing enterprises to "go global," the Measures set out specific application conditions for export-oriented printing enterprises.

Demonstration enterprises are established through voluntary application by enterprises, followed by procedures such as preliminary review, final review and recognition. The General Administration of Press and Publication applies dynamic management to demonstration enterprises; those failing the annual assessment or committing serious violations of laws and regulations will have their designation revoked.

It is reported that, through the recognition, designation, support and publicity of demonstration enterprises, the General Administration of Press and Publication will further optimize the industrial structure, cultivate advantageous enterprises, accelerate independent innovation and technological progress, encourage energy conservation and emission reduction, advocate green printing, and guide the entire industry toward transformation and upgrading. For enterprises recognized as demonstration enterprises, the General Administration of Press and Publication recommends that the local governments where they are located provide support and rewards.

Among these, the industrial support policies deserve particular attention: "Sino-foreign joint venture and Sino-foreign cooperative publication printing enterprises, other printed matter printing enterprises, or read-only optical disc replication enterprises recognized as demonstration enterprises may have the foreign party hold a controlling stake or a dominant position, but the Chinese party's proportion or equity interest shall not be less than 30%." This breaks with the previous requirement that such enterprises must be controlled by the Chinese party. Industry players believe that this year marks the 10th anniversary of China's accession to the WTO, and this support policy further expands the degree of China's openness to foreign investment. In addition, in terms of project funding, the General Administration of Press and Publication gives priority support for industrial development projects and development funds to enterprises recognized as demonstration enterprises.

In terms of management measures, enterprises recognized as demonstration enterprises may, when undertaking the commissioned printing or replication of overseas products, have approval procedures appropriately simplified in line with actual management needs, thereby improving approval efficiency. In terms of selection and awards, under equal conditions, enterprises recognized as demonstration enterprises are given priority.

— This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362115.html