Three years have passed since publication of the first volume of China's Media and Entertainment Law. In this time, we have witnessed considerable industry, regulatory, and technological development in China and around the world, and an update has been long overdue. Volume II is intended not just to record the key aspects of new legislation, but also to provide an analysis of the dynamics behind this burgeoning industry.

While the media and entertainment sectors remain highly regulated, the continuation of reforms that began in the early 1990s has allowed increased private and foreign participation in the market. This, in turn, is helping to meet the ravenous consumer demand in China for new content, driven by a rise in aggregate income levels and spending power.

Of course, the industry still faces extensive challenges: for example, the introduction of new technology, blurring the respective jurisdictions of government authorities, remains a source of tension among PRC regulators. Piracy also continues to impede the development of the PRC media industry by limiting investors' willingness to commit ideas and content to the China market. Perhaps the source of most frustration for local and foreign investors is the fact that certain activities remain restricted by governmental policy. These and other issues are addressed in the pages that follow.

As with its previous edition, this book draws upon practical experience acquired from over a decade of representing leading media companies and is written with the insight and support of key industry players and regulators. Volume II is intended to act as a transparent and comprehensive guide to Chinese media and entertainment-related legislation, with practical commentaries on the actual implementation and impact of those laws. The relatively large number of new laws contained in Volume II reflects the PRC government's attempt to encourage the rapid growth brought on by new technologies, while ensuring that this growth has a positive effect on society. Similarly, the inclusion of a new chapter on Events Management highlights the opening of a sector that, until recently, was off-limits to private and foreign participation.

A number of the regulations published in the Volume I have been amended or repealed: a list of the affected laws and regulations is set forth in the Annex. While we have taken every care to ensure that the English translations of legislation are accurate, some oversights may have occurred due to the ambiguous nature of the context and language in which they were written. In the event of any uncertainty, we urge our readers to refer to the original Chinese text.

We welcome any comments on this book from our friends and readers, and hope that this update again proves to be a useful reference tool for all those who have an interest in China's media and entertainment sectors.

Jesse T H Chang
Beijing
October 2006