Restriction on Investment in optical disks by foreign business to be loosened next month

CD-R disks are considered by the government of Mainland China as goods which may be loaded with ideology. Therefore, such disks have been classified as the “restricted” item.  It is reported that the State Council of Mainland China recently passed new regulations for management.  From April 1, optical disks will be changed from the “restricted” item to the “encouraged” item for investment.

As the industry of optical disks is classified as the restricted item for investment in Mainland China, a Taiwanese enterprise setting up a plant in Mainland China must not only obtain an official letter and license from the General Administration of Press and Publication, but also set up a joint venture which is leading by the China partner in accordance with the law. Nonetheless, the State Economic & Trade Commission and the Ministry of Foreign Trade and Economic Cooperation have jointly announced a new “Guiding Catalogue for Industry Investment by Foreigners.” In the catalogue, CD-R, CD-RW, DVD-R, DVD-RAM disks are changed from the “restricted” items to the “encouraged” items for investment.  Nevertheless, the publication, production and general circulation and import business for audio & video products and electronic publication are still classified as “prohibited” items for investment by the government of Mainland China.  This shows that Mainland China still doesn’t open up pre-recorder optical disks with the nature of mass media. Mainland China has loosened the restriction on production of optical disks to comply with its entrance to the WTO.  Taiwanese manufacturers of optical disks all consider that the above move is helpful to their subsequent investment in Mainland China.

Source: Commercial Times 03/27/2002