The P.R.C. Law on the Promotion of the Film Industry (hereinafter the “Law”) went into force on March 1, 2017.

  In order to curb the increasingly intense practice of fraudulent box office reporting, the Law strengthens supervision and control over box office returns, and increases penalties for the false reporting or concealment of box office returns. The Law also provides that film distribution enterprises and cinemas are prohibited from unfair competitive practices such as concocting phony transactions or falsely reporting or concealing box office returns to deceive and mislead the public and disrupt the order of the movie industry. The Law also explicitly provides for specific monetary fines as well as other penalties such as the suspensions and license revocations.

  Furthermore, the Law moderately liberalizes the film examination procedure. Specifically, it provides that the Film Administration under the State Council must formulate thorough, specific and explicit standards and procedures for film examination, which should be published in a timely fashion. Public comments must be solicited and expert examinations must be organized during the formulation process. The examination panel must include at least five experts, and the decision must be made within 30 days.

  Excerpted from the official website of the Shanghai Municipal Administration of Culture, Radio, Film & TV (http://wgj.sh.gov.cn)