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The Ministry of Culture and Tourism recently issued the Notice on Adjustments Concerning the Approval of Places of Entertainment and Internet Service. The Notice specifies to allow foreign investors to legally set up places of entertainment in China, and to lift restrictions on the equity ratio of foreign investment. This signifies that foreign investors are allowed to set up wholly-owned places of entertainment in China, which is expected to promote the development of China's entertainment sector and meet the Chinese people's growing spiritual and cultural needs.

Foreign investors applying to operate entertainment businesses in China must submit an application to the local provincial cultural and tourism administration, by following the same requirements as domestic investors for materials, conditions and approval procedures. Such requirements will be used as reference for investors from Hong Kong SAR, Macao SAR and Taiwan to invest and set up entertainment venues in the mainland of China.

According to the Regulations on the Administration of Places of Entertainment, a place of entertainment refers to a profit-making location open to the self-entertaining public for recreational activities such as singing and dancing. Since 2013, China has taken steps to lift restrictions on the equity ratio of foreign investment in places of entertainment. In 2013 and 2015, China (Shanghai) Pilot Free Trade Zone and China (Fujian) Pilot Free Trade Zone respectively remove the restrictions to permit foreign-owned places of entertainment. In January 2018, the State Council issued a document allowing the set-up and operation of foreign-owned places of entertainment in pilot free trade zones.

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