China's cultural reform pays off as market assets soar
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China's cultural reform has been paying off as more profitable companies contribute to the market's soaring capital assets, according to a report by the National Bureau of Statistics.
By the end of 2008, the report said, 1,396 cultural groups, up from 430 in 2004, each hit an annual profit of 10 million yuan (1.46 million U.S. dollars).
The figures were based on the bureau's latest research on two nationwide economic censuses in 2004 and 2008.
"In recent years, most of the 'backbone' cultural companies were from fields such as film and TV production, publishing and the Internet, among others," said the report released Friday.
Also, the number of cultural companies increased by 142,900, or 45 percent, between 2004 and 2008. The capital assets added 917 billion yuan, or 50 percent.
Efforts in promoting private sector investment in the cultural sector had achieved obvious results, said the report. The number of private-run cultural groups increased by 130,000, or 78 percent, with capital assets growing 456.9 billion yuan.
The report came as China steps up efforts to boost the reform of the cultural sector and transform most state-owned arts troupes to market-oriented businesses.
The reform has seen 123 state-owned art troupes transformed into market-oriented businesses.
Minister of Culture Cai Wu said last week that by 2012 all state-owned arts troupes should complete the market-based reform. "To develop and invigorate the nation, China not only needs economic power, but cultural power as well," he said.
In addition, the report showed the country's cultural market continued its "relatively fast" development in 2009, with an output equivalent to about 2.5 percent of GDP.
The ratio in 2008 is 2.43 percent.
