On the China's Culture Industry Going Abroad and Adhere to... Make Use of WTO’s Principles

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On the China's Culture Industry Going Abroad and Adhere to and
Make Use of WTO’s Principles
WANG Jianbang
College of International Business, Yuexiu University of Foreign Languages, Shaoxing, Zhejiang,
P.R.China, 312000
[email protected]
Abstract: China's culture industry towards the world is inevitable, but entering the international market
must follow and make use of WTO principles and rules. In recent years, there are a lot of literatures
researching about going abroad of cultural industry and service trade, however. Research about import
and export of the cultural products with the WTO's general agreement on trade in services (GATS) and
the agreement trade-related investment measures (TRIMs), especially, the research combining the basic
principles of WTO has not yet been found. This paper comparative analyzes the difference between
culture industry and service trade and contact, and each categories involved in WTO rules. Notes: The
material products import and export of cultural industry, be same the second industry products, be
subject to the jurisdiction of the rules of the WTO trade in goods and TRIPS. Import and export of
spiritual products of cultural industry belongs to the category of service trade, be subject to the
jurisdiction of the GATS of WTO, it is a very sensitive and important issues of international trade, also
involved in foreign investment and intellectual property rights, the TRIMs and trade-related intellectual
property rights (TRIPs) the jurisdiction of the rules. Therefore, spirit products import and export of
cultural industry, must fully follow and make use of WTO rules, in order to better the cultural industry
to the world.
Keywords: Cultural industry going abroad, Trade in Services, WTO, GATS, TRIPs, TRIMs
1 Introduction
Culture is a foundation of national survival and development. More than five thousand years
development course in China, people of all ethnic groups together creates the broad and profound
culture, provides a strong spiritual power for the development of the Chinese nation, is also made an
indelible contribution to human civilization progress.
From the point of view of nature, culture can be divided into business and industry, as a cultural industry,
it belongs to the category of economy, there are two aspects of material production and spiritual
production, if cultural products is engaged in the import and export, foreign investment and invest
abroad, is involved in international trade rules of WTO and its jurisdiction.
Since China's reform and opening up to world for 30 years, foreign trade has made remarkable
achievements, goods import and export trade in the past precedent on world. However, trade in services
is backward, as a cultural big country, the export of cultural industry, with its economic power and
goods trading powers unbecoming. China's cultural influence in the world only ranks the seventh, the
cultural competitiveness is ranked 24th in the world (Liao Huaying, Lu Qiang, 2010) [1]. China cultural
industry accounts for only 3% of the world's cultural market share. (China's cultural soft power research
center, 2010) [2].
As a result, in recent years, the Chinese government and CPC attaches great importance to the
development of cultural industry, has made many important measures ①.
As an important industry in today's world economy, towards the world the cultural industry is the need
of itself industrial development and economic development of China's current and future requirements,
export is one of the vitality of economic growth in China. Many scholars have carried on the thorough
research. China is a big country that has cultural resources, cultural industry is developing rapidly.
"Cultural strength determines a nation's cultural trade scale, the development of cultural industry expand
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laid a solid foundation for cultural trade, cultural trade, in turn, to promote the development of cultural
industry (Zhang Bin, 2011)" [3].
Under the background of cultural industry internationalization, China's cultural industry actively "go
out", to participate in the division of the world cultural industry chain, this is not only the needs of the
development of Chinese economy, but also is the inevitable requirement of further enhancement of the
comprehensive national strength. (Duan Huiran, 2010) [4].
Research shows that there is a long-term equilibrium relationship between China's service trade and
import and export goods trade size, the expansion of trade in goods to service trade import and export
has promoting effect. (Zhong Xiaojun, 2009) [5]. This shows that China's huge trade in goods is bound to
promote the rapid growth of trade in services, and culture spirit products is an important part of trade in
services. Culture is a kind of productive forces, also is a kind of cultural capital, the development of
cultural industry can promote the upgrading of traditional industries (Li Huailiang, Fang Ying, Wang
Jinhui, 2010) [6]. This shows that culture as a kind of capital and productivity, it is different from the
monetary capital, the development of cultural industry will promote the development of new industries.
Strengthening Chinese culture transmission abroad, can help shaping China's good international image,
enhancing the influence, osmotic force, attraction, affinity of the Chinese culture to the world, making it
play a bigger role. Culture industry should adhere to the combination roads of "go out" and "come in"
Xiao Yongming, Zhang Tianjie, 2010) [7]. This shows that China's culture industry should go
combination roads of "come in" and "go out". China's cultural products have a certain competitive
advantage, but cultural services competitive disadvantage is obvious. In the face of the international
cultural market, should open horizon, carry out international cultural trade, make full use of all mankind
various cultural resources (Hu Qiongye, 2011) [8]. Is that China should make use of world’s excellent
cultural resources and markets.
China's cultural products exports grow rapidly but overall competitiveness is not strong, the low position
in the global value chain, under western country strong and China weak at present, has the rich cultural
resources of China's cultural industry, should promote cultural products export that rising
competitiveness (Tao Qingxian, 2012) [9]. That emphasize the participation in international cultural
industry competition promote competition ability.
Studies have found that services trade export and foreign direct investment, trade in goods exports, there
is positive relationship between per capita GDP, tertiary industry output value, there is a big foreign
direct investment in China, the big output value of tertiary industry and trade in goods exports,
inevitably paved the way for a big growth of the service trade export (Liu Yinjuan, 2010) [10]. This
shows that in China there are three important factors for the expansion of trade in services export,
among them, the foreign investment and invest abroad involves the TRIMs of WTO.
Just found a literature, to our country's high education linked with the WTO’s GATS, however, the
author only declares attributes of the education, has a public nature and commodity nature, if the latter,
only into the GATS, and no linked with specific rules of the WTO. (Zhang Jianling, Zheng Chunfang,
2010) [11]. Described above and after I looking up lots of literatures showed that although many cultural
industry "go out" and many of the service trade and its international competition ability, however, they
have no direct literature with WTO rules.
The above shows that China's abundant culture resources, the industrial scale is huge, comply with the
world economic development abroad is an inevitable trend. However, you must see soberly, go abroad
will inevitably encounter some problems, such as China's trade in goods, have become the world’s top
problems. Although there is not too many problems for our cultural industry to the world, but there are
also some problems, in December 2009, the WTO ruled that China in foreign audiovisual and books in
the field of import and distribution restrictions violated the WTO rules. Predictably, China's cultural
industry to the world, rather than material goods to the world, may encounter more problems and
disputes, how to deal with trade problem has appeared, we should attach importance to and
conscientiously according to the solution of the WTO rules, provide for a rainy day. This is the paper to
the theme of the argument.
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This paper classified the cultural industry import and export, what trade in goods is? What is trade in
services, cultural industry and trade in services have in common or contact, the difference and
distinction, entering the international market and participating in international competition, which is
mainly industry and sector, what aspects of the cultural industry is to belong to the jurisdiction of the
GATS of WTO, which belong to the jurisdiction of the TRIPs and all industries, as long as the export,
investment abroad, must involve the TRIMs of jurisdiction.
To differentiate these similar concepts are clear, the huge cultural industry and trade in services in a
wide range of content associated with the distinction clear, so that when we are engaged in import and
export of these products, to make better use of WTO’s principles and rules provide convenience and
opportunities, make full use of the international market, at the same time, more important, as a very
sensitive industry to enter the international market, how should we follow WTO’s principles and rules,
to avoid problems and disputes appear.
This article's innovation lies in this, however, limited to levels and articles, how to face WTO rules for
each specific problems of cultural industry, are lacking.
2 China's Culture Industry and WTO’s Basic Principles
Culture is a collection of the national spirit, it can come from two aspects of social and economic, which
is the culture cause and culture industry, as a culture cause, which in most cases belongs to public goods,
cannot be handled by economic interests. As a cultural industry, it belongs to the category of economy,
there are two aspects of material production and spiritual production, if engaged in import and export, is
involved in the basic principles of the WTO, according to the classification of the national bureau of
statistics of China to cultural industry (national bureau of statistics, 2004) [12].
Culture and related industry is to provide culture, entertainment products and services for the social
public, as well as a collection of activities associated with these activities. It can be divided into two
parts:
The first part is cultural services, including:
1. The news service: all kinds of paper media news service.
2. The publishing and copyright services: production, publishing, distribution and copyright services
for books, newspaper, publication, audio and video products.
3. Radio, television, film services: including satellite services.
4. Culture and art service: all the culture, art creation and performance, also include the education and
training services.
5. Network culture service: all kinds of Internet culture service.
6. Culture leisure and entertainment services: including tourism culture, entertainment and leisure
service.
7. Other cultural services: including advertising, conference and exhibition services.
The second part is the related cultural services, including:
8. Production to cultural goods, equipment and related cultural products: production of all material
cultural products.
9. Sales to cultural goods, equipment and related cultural products: sales of all material cultural
products.
In short, all cultural products, practical for the material and spiritual two aspects, including the
production, manufacture, transmission, sales, etc., the service is a noun and verb, the content and scope
is very big. International exchanges and cooperation in today's cultural context, the cultural products,
both material products and spiritual products, as long as go abroad, must all be governed by the relevant
WTO principles and rules.
We can put these 9 products division: the 1 to 7 classes is intangible products or spiritual culture, the 8
and 9 is the tangible product or substance of culture, as long as the import and export, should be subject
to the jurisdiction of the WTO general rules, but the different nature of the product, shall be governed by
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the rules of the WTO. Overall, China's cultural industry the 1 to 7 classes corresponding to the WTO
under the jurisdiction of the General Agreement on Trade in Services (GATS), the 2 corresponding to
the jurisdiction of the Agreement on Trade-related Intellectual Property Rights (TRIPs) also, what other
range corresponding to the jurisdiction of the Agreement on Trade-related Investment Measures
(TRIMs), the 8 and 9 correspond to the jurisdiction of the TRIMs, individual corresponding to the
jurisdiction of the TRIPs. The details are late.
The WTO basic principle is as follows: Non-discrimination principle, embodied in the implementation
of multilateral most-favoured-nation treatment and complete national treatment; Trade liberalization
principle, step by step to reduce trade barriers to implementation; Fair trade principles, by anti-dumping
and anti-subsidy; Allow proper protection principle; Developing countries preferential principle;
Exception and exemption principle; The transparency principle, etc. These principles or rules, have
jurisdiction on all trade, at some times provide conveniences and opportunities for all trade, countries
can according to own situation, follow the principles and rules at the same time, take advantage of them.
3 China's Culture Industry and the WTO’s GATS
See the above analysis, the spirit products of culture industry belong to the jurisdiction of GATS of
WTO, it belongs to the trade in services which categories below. The WTO's GATS listed services
includes the following 12 major categories, more than 160 small classes (Xue Rongjiu, Zhao Yuhuan,
2003) [13].
1. Business service: the individual is cultural products.
2. Communication services: all are cultural products.
3. Building services: non-cultural products.
4. Sales service: the individual is cultural product.
5. Education service: all are cultural products.
6. Environmental services: non-cultural products.
7. The financial service: non-cultural products.
8. Health services: non- cultural products.
9. Tourism service: the individual is cultural product.
10. Entertainment services; all are cultural products.
11. Transport services: non- cultural products.
12. Other services: non-cultural products.
Above, a total of 12 big kinds or categories of concrete involving more than 160 departments, in fact, it
includes all the content that products import and export of the third industry, is all the content of the
service trade. In the 12 big kinds, we clearly see that the services of cultural spirit products in our
country, mainly belong to the 2, 5, 10 big kinds, the individual belongs to the 1, 4, 9 big kinds.
We compared our country culture industry classification and the classification of the WTO on trade in
services, it can be seen that there is a difference between them: our cultural industry, is only part of the
third industry, the WTO trade in services, actual it is the whole content of the third industry, are much
larger than the scope of our culture industry. Here, we are only involved in the GATS of WTO to
China's cultural industry categories, respectively.
Namely in 12 big kinds or categories of GATS, our services of spirit products of culture industry belong
to the 3 big kinds or categories: "education, entertainment and communication", more or less will
involve "business, marketing and tourism". Although only 3 big kinds of its 12, however, it covers the
core content of culture industry, the cultural sprint services have accounted for China’s culture industry
the 7 of the 9 big kinds. Our cultural spirit product to move towards the world, its entertainment
products (theatre, movies, anime, etc.), education products (teaching Chinese, the Confucius institute,
study abroad, etc.), communication products (broadcasting, television, satellite, Internet, etc.), business
and sales products (meeting, conference and exhibition, etc.), and other material products related
cultural spirit product, all should be under its jurisdiction. By GATS rules at the same time, more can
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make use of its principles and rules.
Of the cultural products listed above, as long as it is spiritual products, across border, is to provide
services, is the trade in services, according to the WTO’s GATS, there are four kinds of way to service:
1. Cross - border Supply;
2. Consumption Abroad;
3. Commercial Presence;
4. Movement of Natural Persons.
Due to different country's ideology and the competitiveness of the economy and openness is different,
there will be a lot trade barriers of providing services existing under the GATS, such as cultural spirit
product itself, movement of its capital and service personnel, market accession, the quantitative
restriction, etc. The main barrier is market access, investment barriers to set up service institutions and
enterprises must be considered. Of course, available also many: Most favored nation treatment, national
treatment and developing countries preferential, fair trade, exception principle, etc.
4 China's Culture Industry and WTO’s TRIPs and TRIMs
The above classification of cultural industry in China, the 2, 3, 4 big kinds involves the Trade - related
Intellectual Property Rights (TRIPs), such as copyright and related rights (all kinds of literature, science
and art books, audio and video, performance, photography and other accessories), trademarks,
geographical indications, industrial designs, patents, and introduction and concessions. Import and
export of culture products must pay special attention to these rules, legal use of its provisions.
TRIPs is to establish the intellectual property rights protection mechanism, is high uniformity and
efficiency. Protocol goal lies in the fact that intellectual property protection and enforcement should be
to promote the technical innovation, technology diffusion and technology transfer to contribute,
contribute to the balance of rights and obligations, the benefits of the inventors and users. Ma Chunhui
think that, as a legal system, although it has many imperfections, but TRIPs and WTO’s dispute
settlement mechanism are still providing some convenient for the developing members in intellectual
property rights in their trade disputes. We should fully take the understanding and utilization, and to
make both conform to the requirements of TRIPS, and is advantageous to the protection of intellectual
property rights and economic interests in China strategic decisions (Ma Chunhui: 2011) [14].
The 8th big kind of our culture industry is a cultural material product, namely, cultural goods,
equipment and related cultural products, if the multinational organizations and enterprises set up
production abroad, need investment, must be involved in TRIMs jurisdiction. Also our cultural spirit
products of the 1th to7th, if establish organizations and enterprises to provide services in foreign
countries, will be governed by the relevant TRIMs.
TRIMs the core is to cancel everything inconsistent rules to WTO’s national treatment rule and cancel
the limit investment measures. In order to increase transparency, the parties must be fully transparent
investment measures; The agreement also stipulates in certain situations can be appropriately
implemented against the national treatment clause and cancellation measures to limit the terms of the
investment. (Xue Rongjiu, Zhao Yuhuan, 2003) [15].
Our cultural products exports, such as the material goods, there may be jurisdiction on non-tariff
measures such as technical barriers to trade agreement of WTO, and on the agreement on import
licensing procedures, rules of origin and anti-dumping agreement, anti-subsidy agreement. Individual
cultural spirit product, may also be subject to import licensing procedures agreements, distribution
agreements and technical barriers to trade agreement jurisdiction. At the same time, the safeguard
agreement of WTO could be also be used.
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5 Conclusion
China's cultural industry is the important pillar industry of national economy, it has importance to
China's realization of the industrial structure optimization and trade growth mode transformation, is an
important part of China's comprehensive national strength.
As the world's political power, the second largest country in the world economy, the first big country of
world trade in goods, from the current reality and the future trend, with deep cultural resources and the
huge China's cultural industry, cultural industry is quickly towards the world market. As the rise of
China's economy and foreign trade in the world market, China's trade in goods has caused many
problems and disputes, appeared a lot of disputes, China's cultural products to the world, especially the
cultural spirit is bound to cause more problems and disputes, intellectual property areas have problems.
Our cultural products, cultural spirit product in particular, to export the world market, is a very
important and sensitive issue, although the problem is not very big at present, however, as the spiritual
products greatly towards the world, is bound to cause more problems than material products and dispute.
In this paper, it has clear distinguish the categories of cultural products from China respectively belong
to the jurisdiction of WTO’s principles and rules, especially the GATS. For this, our cultural products to
the world, should follow the basic principles of the WTO and its associated specific agreement, at the
same time, more should take advantage of convenience and opportunities by the WTO principles
providing.
First, strictly follow the basic principles of the WTO, the implementation principle of nondiscrimination, has given the MFN and national treatment to foreign culture industry, and at the same
time, asking them to give the same treatment in our country, in view of the Chinese cultural spirit
products import surplus is serious, should request each other to open up its markets.
Second, strictly follow the fair trade principle of WTO, pay special attention to cultural material
products don't have dumping and subsidies behavior, at the same time, strictly monitor the foreign
culture material products whether has unfair behavior to China.
Third, strictly follow the principle of the WTO’s TRIPs and transparency, and respect and maintenance
of intellectual property rights, at the same time, requiring foreign country cannot violate intellectual
property rights and transparency to China.
Fourth, strictly follow the WTO TRIMs, the cultural industry in our country on the world, in the form of
organizations and enterprises, involving investment and market access. We want to provide based on the
principles of the WTO, with the country to carry on the friendly consultation.
Fifth, make full use of our service trade import surplus at present, and especially on cultural spirit
products, launch negotiations related the GATS, let each other increase import accordingly with our
promise, let it open the market.
Sixth, make full use of WTO’s preferential principle of developing country, proper protection principle,
namely general exceptions and security exceptions, strive for rights and benefits, boycott cultural spirit
products from foreign counties that do not conform to the situation of China.
Seventh, make full use of WTO’s trade policy review mechanism and dispute settlement mechanism.
Often consciously review cultural trade policy of our country and foreign trade policy to China, rectify
doings does not accord with the WTO. Nip something in the bud, early attention to trade issues,
correctly make full use of WTO’s dispute settlement mechanism and application, nip the problem before
there is a dispute, also in consultation between the parties, as far as possible don't commit to a higher
level institution to solve.
Eighth, make full use presence of so many overseas Chinese and has a education cultural resources
which is rich and growing, on the one hand, can use of natural person movement and commercial
service trade, act cooperation with the country, set up a corresponding cultural institutions and
enterprises in foreign countries, can be combined with study abroad, immigration investment and
business cooperation, to occupy more international cultural market. On the other hand, with the
principle of equality of trade to related countries, actively attract a large number of foreign students to
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study in China.
Note:
Central Committee of CPC: Decision of Deepening the Reform of Cultural System, to Promote Great
Development of Socialist Culture Prosperity, Oct.18, 2011; National culture Ministry: The Instructional
Advice on Accelerating Development of Cultural Industry, Sept.10, 2009; The Ministry of Commerce
etc: Guidance About Financial Support to Culture Exports, Apr. 27, 2009.
Author in Brief:
Wang Jianbang: Male, economics professor. Research on international trade, China’s investment to the
world and internationalization of Zhejiang private economy.
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