The National Cultural and Creative Industry Experimental Zone Helping to Build a National Cultural Centre
THE NATIONAL CULTURAL AND CREATIVE INDUSTRY EXPERIMENTAL ZONE
The National Cultural Industry Creative Experimental Zone has achieved remarkable results in the last four years. As the nation's first cultural industry creative experimental zone, it has led the overall development of the cultural industries nationwide.
The National Cultural Industry Creative Experimental Zone has achieved remarkable results in the last four years. It has initiated the country's first alliance to protect and utilise old factories and urban cultural development, become the first zone nationwide to achieve annual revenues of over 100 billion yuan, and established the Beijing-tianjin-hebei Culture Industry Development Centre. It has also become the country's first agency to promote social credit for cultural enterprises, initiated the “Hummingbird Project” to promote stock listing, established a national-level copyright monitoring centre and founded a base for copyright innovation. These groundbreaking projects and numbers are truly impressive. As the nation's first cultural industry creative experimental zone, it has made substantial progress in terms of policymaking and innovation, become a byword for cultural creation, played a critical role in Beijing's development into a national cultural centre, and led the overall development of cultural industries nationwide.
Coordinated Development of Culture and Finance
Since its establishment in 2014, the zone has vigorously implemented national cultural and financial policies, and has actively worked towards the goal of building a national cultural centre. It has established a social credit promotion agency and a cultural finance service centre to provide policy and service support. Credit rating, express guarantees, loans and interest subsidy policies have been established. Incubation services have been provided to boost entrepreneurship, search for venture capital and provide stock listing consultancy and policy support. The needs for corporate debt financing and equity financing have been met by multi-layered systems, through multiple channels and in a wide range of fields.
In August 2016, the National Cultural Industry Creative Experimental Zone explored a new model of cultural and financial services linked with enterprise credit, and established the country's first agency to promote social credit for cultural enterprises. In the last two years, the system has been tested and improved. Credit workstations have been established in 14 cultural parks, the zone has entered into cooperation with over 30 financial institutions and a total of 3.78 billion yuan of credit financing has been provided to 361 cultural enterprises, saving 28.3 percent of these enterprises' comprehensive financing costs.
Chaoyang District has also established a 10 billion yuan cultural and creative industry development fund to finance start-ups, the integration of culture and technology, equities, the coordinated development of the BeijingTianjin-hebei region and other major infrastructure projects. The focus will be placed on high- end, leading industries within the cultural field.
The zone has focused on the listing of stocks for cultural enterprises by establishing a strategic reserve pool to help companies looking to go public, bring in talent, hire executives and receive favourable policy support. The zone has set up a strategic cooperation mechanism with the Beijing Centre of the Shenzhen Stock Exchange to serve cultural enterprises in terms of information sharing, listing consultation, talent training, risk prevention and control, and other areas. The zone helps high-quality cultural assets looking to go public. The credit agency has established a strategic alliance with the Beijing Cultural Equity Exchange to build the Beijing Cultural Creative Industry section and meet the financing needs of cultural enterprises in the zone.
In August 2018, Beijing's first offline cultural financial service centre officially opened in the zone. A total of 20 financial institutions moved in, providing cultural enterprises with over 30 types of financial service products and assisting them with policy consultation, matching with commercial partners, financial business and investments. The institutions also give professional guidance to the cultural companies in areas such as training and road shows.
As a comprehensive experimental area for the reform and innovation of the cultural industry, the zone has played an exemplary role in leading nationwide cultural industry reforms through policy innovation, integration of culture and finance, protection of intellectual property rights and improving services. It established the first Beijing-tianjin-hebei Culture Industry Development Centre to support companies in the area; an alliance to protect and use old factories while integrating them with urban cultural development; and the first cultural enterprise social credit agency, which has attracted 361 companies. A total of 3.78 billion yuan in financing was secured through credit, which cut financing costs by 28.3 percent. It formulated the first
policy guideline for cultural and creative companies in applying for high-tech status. A 15-point policy measure was put in place to cover the whole cultural industries chain to improve the credit rating system, cultural trade, cultural consumption, bonded services, flagship enterprises, boutique parks, venture capital awards, stock listing financing, incubation innovation, foreign investment, high-end talent, service platforms, intellectual property rights and registration services. In the past two years, 249 projects and a group of creative cultural enterprises with strong growth potential have been supported. A 10-billion-yuan fund was established to broaden financing channels for cultural companies, and a cultural financial centre was established for companies‘ convenience. A centre for the protection of intellectual property rights (IPR) for the cultural industry was established to build an IPR protection framework in conjunction with the Copyright Society of China, National Copyright Innovation Base, Monitoring Centre of Copyright Society of China, and Beijing Cultural Equity Exchange.
The zone has nurtured an industrial structure that is dominated by high added-value and high- growth industries. New cultural industries characterised by the integration of culture, technology and new technology, have become growth engines for the zone. Companies that are engaged in “Internet Plus Culture” account for 52.1 percent of the total revenue. The average annual growth rate of companies focused on high technology content, creativity and added value, such as mobile new media, digital entertainment and digital publishers, has reached over 30 percent.
In 2017, cultural enterprises above designated size in the zone achieved revenues of 177.61 billion yuan, accounting for one-tenth of Beijing's total, and registering a year- on-year growth of 15.6 percent. In the first half of 2018, revenue from these enterprises was 75.78 billion yuan. By the end of July 2018, a total of 39,000 cultural enterprises had been registered in the zone, of which 23,000 were newly added. At the same time, the zone had introduced and cultivated 88 listed cultural enterprises (including the New OTC Market) such as Xuanya International Inc. and ireader; a group of “unicorn” enterprises including In My Show Inc. and I Get Get App; nine national-level mass innovation spaces; and a number of key national cultural export enterprises such as BON TV and Propeller TV. With the participation of well-known cultural enterprises, including People's Daily, China Media Group, Beijing TV, Phoenix TV, Wanda Culture, Evergrande Culture, Inke Live, Tencent Pictures, Amazon and Blue Focus Group, the zone now has the densest area of cultural enterprises in the country. Driven by the expansion of the zone, in 2017, the cultural enterprises above designated size in Chaoyang District achieved revenues of 375.44 billion yuan, with year- on-year growth of 19.7 percent. From January to June 2018, above-scale cultural enterprises in Chaoyang brought in revenues of 171.66 billion yuan, maintaining a momentum of steady growth. By the end of July 2018, there were 89,000 cultural enterprises registered in Chaoyang, 194 listed cultural companies (including the New OTC Market) and 222 cultural enterprise headquarters.
In 2018, with the addition of Jingying Menggu Park, Sanlitun Courtyard 4, BAIC Shuangjing Park, Fucang Park and E9 Zone, there are now 35 featured cultural and creative parks based in old factories in the zone. Chaoyang District is home to 60 such featured parks, including 798, 751, Laijin, Langyuan, Maolong, Hengtong, Huitong, Silon, Jili and Zi Space, covering a total reconstruction area of 2.99 square kilometres. Thus, Chaoyang now has the densest area and highest number of typical cultural industry demonstration areas based in renovated old factories.
Partners for Old Factory Renovation
In August 2018, the National Alliance for Old Factory Protection and Utilisation and Urban Cultural Development (the National Old Factory Coordinated Development Alliance) was established. It is under the joint advocacy of Chaoyang District, China Cultural Industry Association, relevant departments of 23 cities (districts) from 17 provinces and municipalities experienced in old factory protection and reutilisation, think tanks such as the Cultural Development Research Institute of the Communication University of China and 94 renowned cultural and creative parks transformed from old factories.
The Alliance is the first national, industrial, non-profit organisation and platform focused on the protection of old factories and development of urban culture. To solve practical problems and promote the protection and utilisation of old factories nationwide, the Alliance issued “invitations” for partners all over the country. The goal was to find those who are interested in participating in urban renewal and old factory protection and utilisation as well as promoting urban cultural development to pool energies to develop the rich culture of old factories, promote development in the cultural and creative industries, and meet people's desire for a happy life.
The Alliance's partnership program is aimed at promoting cooperation between members and non-members of the Alliance and serving as a bond and bridge for resource alignment and business cooperation. Besides aligning demands and providing services, the Alliance is focused on gathering upstream and downstream resources in the industry in addition to providing diverse solutions to help its members develop. With the Alliance as its base, it will pool external resources for its members, promote Beijing's experiences and practices in the protection and utilisation of old factories and urban cultural development, encourage cities to use existing resources to expand their cultural space, and promote industrial upgrading and urban renewal.
The partnership program will facilitate the Alliance in better promoting old factory protection and utilisation and urban cultural development. First, the Alliance will play a role as an example, cooperate with more cities that have old industrial factories, repeat the successful experiences of outstanding members in more places, and promote the sustainable renewal of cities. Second, it will integrate cultural resources of performances, art
exhibitions and themed activities by members and non-members, and provide more diverse cultural experiences for cities and communities. Third, the Alliance will fully tap its industrial agglomeration effect; further explore and utilise spatial resources of old factories; and carry, gather and incubate more quality cultural and creative enterprises. Last, it will promote the gathering of cultural and creative enterprises and the industrial transformation and upgrading of cities.
The partnership program aims to seek cooperation partners from within the industry, industry chains and the media.
Industry partners include universities, colleges, research institutions, planning and design organisations, and industry associations. The Alliance intends to work with these partners to establish a sustainably updating industry database which will include: the research results of themed policies for urban renewal and old factories, annual reports on old factory development, and cases of successful operation of cultural spaces based on old factories. It also intends to set up a national resource sharing mechanism, and give full play to academic support organisations' role as think tanks, such as by providing training services and support for urban renewal and park development.
Industry chain partners include institutions focused on architectural design, park operations, event planning, art exhibitions, performances and technological development. The Alliance intends to join hands with these partners to build more elite old factory parks, present more themed cultural activities and realise centralised procurement and content sharing. First, it will promote the sharing of top IP resources such as art exhibitions, performances and themed activities; secure information sharing between members; and establish a unified cooperation channel, recommending it to the members or organising centralised procurement by the Alliance. Second, it will work with its partners to launch an e-commerce platform for cultural and creative derivatives, and support the design, development and promotion of enterprises' derivatives within the zone. Third, it will help old factories transform into cultural and creative parks. It will establish an incubation platform for new parks by connecting with the owners of old factories and integrating resources related to planning and consultation, transformation design, park operations and investment. It will also create additional cultural and creative parks as well as public cultural spaces.
Media partners include professional media and “self-published” media. The Alliance intends to establish a longterm, comprehensive media cooperation mechanism via partnerships. This aims to make the Alliance and its members better known through various channels via a series of themed reports and special cultural commentary; help the IP resources of old factory parks and cultural and creative derivatives become better accepted by the market; highlight the huge potential of the cultural and industrial industries; and demonstrate vitality in innovation and room for urban development in the new era.
E9 Zone Innovation Park in Chaoyang District, Beijing
Universal Creative Park in Chaoyang District, Beijing