Multiple national level government bureaus jointly issued the Memorandum of Understanding on Imposing Joint Punishment on Market Participants and Related Personnel Charged with Serious Illegal and Dishonest Acts in the Cultural Industry (the "MOU"). The MOU was signed by:

●  The National Development and Reform Commission

●  The People’s Bank of China

●  The Ministry of Culture and Tourism

●  The Organization Department of the CPC Central Committee;

●  The Publicity Department of the CPC Central Committee;

●  The United Front Work Department of the CPC Central Committee;

●  The Civilization Office of the CPC Central Committee;

●  The Ministry of Science and Technology;

●  The Ministry of Finance;

●  The Ministry of Human Resources and Social Security;

●  The Ministry of Natural Resources; The General Administration of Customs;

●  The State Taxation Administration; The State Administration for Market Regulation;

●  The China Banking Regulatory Commission; The China Securities Regulatory Commission; and

●  The All-China Federation of Trade Unions.

The MOU was established for the purposes of accelerating the development of the credit system in the cultural industry market and establishing and perfecting a unified sanctions regime against dishonesty in the cultural industry.

The MOU states that a cultural industry market participant that receives an administrative sanction for violating applicable laws or regulations, or conducts business in the cultural industry without permission, will be added to a national cultural industry blacklist along with its legal representatives or major principal in charge, under at least one of the following circumstances:

(i) its unlicensed business activities in the cultural industry lead to a serious accident or extremely harmful social influence;

(ii) its license is revoked by the Ministry of Culture and Tourism or by another law enforcement authority with jurisdiction over the cultural industry;

(iii) its license or approval document is revoked by the Ministry of Culture and Tourism for obtaining its license by dishonest means such as deception, intentional concealment or falsification/alteration of documents; or if irrefutable evidence proves that it falsified or altered a license or approval document; or

(iv) other circumstances where applicable law justifies the blacklisting of a market participant or its legal representatives or major principal in charge. 

(Source: Shanghai Securities News)