News from China

[Heiko Recktenwald <uzs106@ibm.rhrz.uni-bonn.de>]

   China Regulates Audio-Visual Online Commerce
   
   (3/28/2000) In continuing its attempts to further control its citizens
   use of the Internet, China recently issued new regulations for online
   business transactions involving audiovisual products, the March 27
   Hulianwang Zhoukan (China Netweek) reported.
   
   The regulations were contained in the Ministry of Cultures "Circular
   on Relevant Issues Concerning the Online Business of Audiovisual
   Products."
   
   According to the newspaper, the circular stated the following:
    1. China practices a licensing system for online business activities
       involving audiovisual products. It bans any such business
       activities, which have not been recorded with, and approved by,
       the appropriate audiovisual administrative authorities.
    2. Audiovisual-product producers, wholesalers, retailers and lessors
       who are established with approval can engage in the buying,
       selling and leasing of audiovisual products through their own Web
       sites or Web pages.
       A dealer in audiovisual products who intends to develop an online
       business must report to the provincial (or municipal or autonomous
       regional) administrative department in charge of the relevant
       audiovisual market to register, and must bring with him materials
       that include the name of the companys legal representative, the
       name of its own Web site or the name of the Web site it is linked
       to, and its e-mail address. The business shall not begin operating
       before its registration is verified.
    3. An information-network operator who intends to run an online
       business offering audiovisual products must apply to the
       provincial (or municipal or autonomous regional) administrative
       authority for the audiovisual market to receive an audiovisual
       business license in accordance with the relevant provisions of the
       "Regulations on the Administration of Audiovisual Products." An
       operator shall not go into business before receiving this
       approval.
    4. Foreign-funded and Chinese-foreign joint venture
       information-network operators are forbidden to operate online
       businesses involving audiovisual products.
    5. Audiovisual products to be sold over the Internet must be legal
       products manufactured by domestic audiovisual-product producers.
       Dealers must state clearly the name of the manufacturer, standard
       codes, and in the case of imported products, the number of the
       imports approval document.
       The following business activities are forbidden: those involving
       audiovisual products whose contents are restricted by Article 3 of
       the "Regulations on the Administration of Audiovisual Products,"
       and illegal audiovisual products, including smuggled and pirated
       products.
       Selling imported audiovisual products over the Internet, dealing
       in MP3 music products downloaded from the Internet, and wholesale
       transactions of audiovisual products over the Internet also are
       prohibited.
    6. A unit engaging in business online should include on a marked
       place on its Web site or home page the number of its business
       license and the telephone number of the authority, which
       registered the business and issued its license.
    7. Online business activities involving audiovisual products must
       strictly observe the laws and rules concerning the administration
       of the audiovisual market and are subject to the supervision and
       administration of audiovisual market administrative authorities.
       Any unit that acts against relevant provisions of this circular
       will be punished by the audiovisual market administrative
       authorities in accordance with the "Regulations on the
       Administration of Audiovisual Products" and other related laws and
       regulations.
    8. Units which have already engaged in online business activities
       involving audiovisual products shall undergo the formalities of
       registration and receiving approval in accordance with this
       circular before May 1, 2000.