Business Overview
Regulation of Broadcasting Audio/Video Programs
through the Internet
We are subject to various laws and regulations
in connection with providing online audio/video
programs and livestreaming via our platform. For
example, according to the Rules for the Administration
of Internet Audio and Video Program Services,
commonly known as Circular 56, jointly issued by the
State Administration of Radio, Film, and Television,
or the SARFT, and the MIIT, all online audio/video
service providers are generally required to be either
wholly state-owned or state-controlled. According to
relevant official answers to press questions published
on the SARFT’s website dated February 3, 2008, online
audio/video service providers that already had been
operating lawfully prior to the issuance of Circular
56 may re-register and continue to operate without
becoming state-owned or controlled, provided that the
providers have not engaged in any unlawful activities.
This exemption will not be granted to online audio/
video service providers established after Circular 56
was issued.
We are also subject to a series of requirements for
audio/video content posted on our platform. The
General Administration of Press and Publication,
Radio, Film and Television, or GAPPRFT (which was split
into the National Radio and Television Administration,
or NRTA, and the State Administration of News and
Publication in March 2018) released several notices on
the administration of online audio/video programs,
which stress that entities producing online audio/video
content must obtain a permit for radio and television
program production and operation, and that online
audio/video content service providers should not
release any Internet dramas or micro films that were
produced by any entity lacking the permit. For Internet
dramas or micro films produced and uploaded by
individual users, the online audio/video service
providers transmitting this content will be deemed
responsible as the producer. Furthermore, the online
audio/video contents, including Internet drama and
micro films, are required to be filed with the relevant
authorities before release.
According to the Circular on Strengthening the
Administration of the Online Show Livestreaming and
E-commerce Livestreaming issued by the NRTA on
November 12, 2020, platforms providing e-commerce
livestreaming services shall register their information
and business operations by November 30, 2020.
The overall ratio of front-line content analysts to
livestreaming rooms shall be 1:50 or higher on
such platforms. A platform shall report the number
of its livestreaming rooms, streamers and content
analysts to the provincial branch of the NRTA on a
quarterly basis. To host any e-commerce promotional
events such as E-commerce festivals, E-commerce
days or promotion days using livestreaming, live
performances, live variety shows and other live
programs, the platforms shall register the information
of guests, streamers, content and settings with the
local branch of NRTA 14 business days in advance.
Online e-commerce livestreaming platforms shall
conduct relevant qualification examination and
real-name authentication on businesses and
individuals providing livestreaming marketing services
and keep complete examination and authentication
records, and shall not enable imposters or businesses
or individuals without qualification or real-name
registration to conduct livestreaming marketing
services.
Regulation of Internet Publication
The SARFT is responsible for nationwide supervision
and administration of publishing activities in China.
On February 4, 2016, the GAPPRFT, the SARFT’s
predecessor, and the MIIT jointly promulgated the
Online Publication Service Administration Rules, or the
Online Publication Rules, which took effect on March
10, 2016.
Pursuant to the Online Publication Rules, an online
publication service provider must obtain the Online
Publication Service License from the GAPPRFT. The
term “online publication service” is defined as the
provision of online publications to the public through
information networks. The term “online publications”
is defined as digital works characteristic of publishing
such as editing, production or processing provided to
the public through information networks.
The Online Publication Rules expressly prohibit foreign
invested enterprises from providing online publication
services. In addition, if an online publication service
provider intends to cooperate for an online publication
services project with foreign invested enterprises,
overseas organizations or overseas individuals, it
must report to the GAPPRFT and obtain an approval in
advance. Also, an online publication service provider is
prohibited from lending, leasing, selling or otherwise
transferring the Online Publication Service License, or
to allow any other online information service provider
to provide online publication services in its name.
Fiscal Year 2021 Annual Report 73