The Na­tional Cul­tural and Cre­ative In­dus­try Ex­per­i­men­tal Zone Help­ing to Build a Na­tional Cul­tural Cen­tre

THE NA­TIONAL CUL­TURAL AND CRE­ATIVE IN­DUS­TRY EX­PER­I­MEN­TAL ZONE

Beijing (English) - - CONTENTS - Trans­lated by Re­becca Lou Edited by David Ball

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.

Re­mark­able Achieve­ments

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

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