Foreign investment welcome in China's new advertising landscape
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clpstaff &clp articlesThe Provisions for the Administration of Foreign-invested Advertising Enterprises (the Provisions) were promulgated by the State Administration for Industry and Commerce (SAIC) and took effect on October 1. The Provisions replaced the Regulation of Administration of Foreign Invested Advertising Entities and reflects a liberalisation trend that encourages foreign investment in this specialised business sector. By Richard Wageman, DLA Piper, Beijing.
The advertising industry is a relatively new business sector in China, but since its inception in the 1970s, this industry sector has experienced rapid growth whereby the total advertising revenue now generated in China is starting to rival some of the leading industrial nations.
In China during the 1960s and early 1970s, commercial advertisements were still considered a unique feature of the capitalistic world and not suitable for the Chinese public. The only entity in China at that time that came close to conducting advertising activities was the Shanghai Advertising Company, which designed and produced political propaganda posters featruing the portrait of Chairman Mao Zedong in Tiananmen Tower on a regular basis. This type of advertising activity, as basic as it was, was followed in 1979 when the Wen Hui Newspaper published an article1 that supported advertising activity in China. Since that event, the advertising industry in China has grown rapidly.
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