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Read in Chinese

Speakers:

Gan Lin, director of the Office of the National Leading Group on the Fight Against IPR Infringement and Counterfeiting, and vice minister of the State Administration for Market Regulation

Tang Zhaozhi, a person in charge of the Copyright Management Division under the Publicity Department of the Communist Party of China (CPC) Central Committee

Chen Yusong, a person in charge of the Department of Treaty and Law at the Ministry of Commerce

Mao Jinsheng, a person in charge of the Intellectual Property Protection Department of the National Intellectual Property Administration (NIPA) 

Chairperson:

Xing Huina, deputy head of the Press Bureau of the State Council Information Office (SCIO) and spokesperson for the SCIO 

Date:

April 26, 2021

Xing Huina:

Friends from the media, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). China has attached great importance to the protection of intellectual property rights (IPR) and the building of a fine business environment. Today marks the 21st World Intellectual Property Day. We are joined by Ms. Gan Lin, director of the Office of the National Leading Group on the Fight Against IPR Infringement and Counterfeiting, and vice minister of the State Administration for Market Regulation. Ms. Gan will introduce details concerning the Report on the Latest Development of IPR Protection and Business Environment in China (2020), and then answer your questions. Also present at today's press conference are Mr. Tang Zhaozhi, a person in charge of the copyright management division under the Publicity Department of the Communist Party of China Central Committee; Mr. Chen Yusong, a person in charge of the Department of Treaty and Law at the Ministry of Commerce; and Mr. Mao Jinsheng, a person in charge of the Intellectual Property Protection Department of the National Intellectual Property Administration (NIPA).

First, I'll give the floor to Ms. Gan Lin.

Gan Lin:

Friends from the media, ladies and gentlemen, good afternoon. Today marks the 21st World Intellectual Property Day, and I am delighted to be here to share with you the latest progress concerning China's IPR protection and business environment improvement. On behalf of the Office of the National Leading Group on the Fight Against IPR Infringement and Counterfeiting, I would like to take this opportunity to thank our friends from the media for your consistent attention and great support for our work in protecting IPR, cracking down on IPR infringement and counterfeiting, and improving the business environment.

The year 2020 was indeed extraordinary. In face of the severe setback brought about by the sudden outbreak of the COVID-19 pandemic and the deep recession of the global economy, China has coordinated its epidemic prevention and control work with economic and social development, and continuously worked to crack down on IPR infringement and counterfeiting. As a result, China has made solid progress concerning IPR protection, and its business environment, which is based on market principles, governed by law and up to international standards, has been further improved. Today, we released the Report on the Latest Development of IPR Protection and Business Environment in China (2020). It is a comprehensive introduction of the relevant measures being taken by the Chinese government and the positive progress being made. Next, I'll brief you on its main content from four aspects.

The report analyzes new situations and challenges both in China and the rest of the world at present. Globally, due to the impact of the pandemic and other factors, international trade and investment has seen a huge contraction, and the world is experiencing a major economic recession. Protectionism and unilateralism are rising, while sci-tech innovation faces strong headwinds. Domestically, the digital economy is bursting with vitality, and new industry and business models are thriving. Self-reliant innovation is speeding up, meanwhile, more focus has been placed on quality over quantity when it comes to IPR. As the number of market entities continues to steadily grow, new requirements have emerged for improving the business environment in China.

The report presents the work on IPR protection in 2020 in the following six aspects. In terms of coordination, the Central Committee of the Communist Party of China (CPC) and the State Council have made a series of decisions and deployments, and the leading group has held nationwide audiovisual conferences to specify the work focuses for each year. The office of the leading group and all member units have proactively implemented the tasks. Given this, government departments have seen closer cooperation, and regional coordination is more efficient. In terms of legal guarantees, China has formulated and revised a set of laws, regulations and judicial interpretations, such as the Civil Code, Criminal Law, Patent Law and Copyright Law, to name a few. In doing so, China has further improved its IPR-related legal system in a way that is in accordance with international rules and is fit for China's particular situation. In terms of administrative law enforcement, China is focused on key fields, links and products, and has launched a series of targeted campaigns to crack down on IPR infringement. In terms of judicial protection, China has taken resolute action against criminals, made sufficient procuratorial and supervision efforts, and significantly improved the quality and efficiency of work when exercising judicial powers. In terms of society-wide joint-governance, China has been working to improve industries' self-discipline and strictly holding market entities accountable for their business production and operation. Dispute resolution efforts have been strengthened, and a governance system which features joint public participation is about to be established. In terms of publicity and communication work, China is focused on key efforts, and works in multiple ways to improve the influence of the issues by releasing reports and presenting typical cases.

The report showcases the main progress made in 2020 concerning the improvement of the business environment in the following four aspects. First, China has improved services for foreign investors. The role of trade platforms has been given full play, which has improved the efficiency of business activities and facilitated trade and investment. Second, China has further widened market access, and provided convenience for both enterprises and products which intend to enter the Chinese market. More efforts have been made to streamline administration and delegate power. Third, China has been continuously developing new methods of regulation and supervision, strictly practicing competition enforcement, and strengthening protection on property rights, in a bid to make law enforcement and the judiciary more efficient. Fourth, China has introduced effective support and assistance measures accordingly. The examining efficiency of registration has been continuously improved, and more taxes and fees have been cut, making government service more comprehensive.

The report elaborates on the major progress made in deepening international exchange and cooperation. This includes but is not limited to the enhancement of multilateral and bilateral exchange, boosting understanding and consensus via international conferences and forums, proactively engaging in international joint law enforcement to crack down on cross-border infringement and counterfeit crimes, and taking part in the formulation and signing of international rules and agreements in order to further improve global governance. These include the Beijing Treaty on Audiovisual Performances, the China-EU agreement on the cooperation for and protection of geographical indications, and the Regional Comprehensive Economic Partnership Agreement. 

China has persisted in the protection of intellectual rights and the improvement of its business environment, and these efforts have been recognized by the international community. In the Global Innovation Index 2020, issued by the World Intellectual Property Organization, China ranks 14th, which makes it the only middle-income economy in the top 30. As pointed out in the thematic report "China's Doing Business Success: Drivers of Reform and Opportunities for the Future" published by the World Bank, China's reform measures for bettering its business environment, which can be drawn on by other economies around the world, had been a strong driver for the overall improvement of the global business environment. We will make continued efforts to build our country into an international highland in terms of innovation and business environment. 

The introduction of the report stops here. The full text has been published on China's Website for the Campaign Against IPR Infringements and Counterfeits (ipraction.gov.cn) and on the official site of the State Administration for Market Regulation (SAMR). People can visit those sites to download the full report. 

Thank you. 

Xing Huina：

We will begin answering questions now. Please state the news outlet you work for first. 

China Media Group:

In 2020, The CPC Central Committee and the State Council made more arrangements and deepened reforms to streamline administration, delegate authority, improve regulation, and optimize services. They also improved the business environment and brought out the vitality of market entities. So, can you specify what work the SAMR has done to improve the business environment? Thank you. 

Gan Lin：

Thank you for your question. Improving the business environment, especially by enhancing market regulation, is an important responsibility of the SAMR and an important task for the national system of market regulation. In 2020, we firmly implemented the decisions and arrangements of the CPC Central Committee and the State Council. The SAMR drew up opinions on the implementation of the regulations on improving the business environment. Being fully dedicated to the continued improvement of the business environment, the national system of market regulation pushed forward reforms through innovative measures with the aim to streamline administration and delegate authority, improve regulation, and optimize services. We mainly carried out tasks in the following five aspects:

First, we deepened business system reform and fully realized that procedures for setting up a business can be handled online. The average time needed for setting up a business has been shortened to within four working days. We pushed for the closing of a business to also be handled online and widened the pilot reform to simplify procedures for closing a business. We trialed reforms in separating permits from business licenses in 18 different pilot free trade zones with full coverage. We pushed for the experiences of pilot projects to be duplicated and implemented more widely. We carried out the simultaneous issuance of electronic business licenses and electronic seals, promoted the use of electronic signatures for business licenses and "electronic business licenses plus electronic license information." We have continued to expand the scenarios where electronic business licenses can be used. 

Second, we eased production access. We delegated the approval of manufacturing licenses to provincial-level market regulation authorities for five categories of products, namely, concrete iron for construction use, cement, equipment for radio and TV transmission, counterfeit RMB banknote discriminating devices, and simply supported beams used on prestressed concrete bridges. We advanced reforms relating to qualification certifications of institutions for inspection and testing. We also trimmed the directory for compulsory certification. 

Third, we advanced progress in resuming work and production. Together with relevant departments, we introduced ten measures to support the resumption of work and production, offered guidance for increased aid and assistance to self-employed individuals, put forth more than 700 policies to offer help, and released the national standards for a health QR code. We strengthened the comparison of domestic and foreign standards for anti-pandemic supplies, streamlined compulsory certification procedures for export-oriented commodities to be sold at home, conducted verification and calibration works for enterprises across 18.54 million measuring instruments, and tested 350,000 batches of anti-pandemic supplies. We made efforts to manage fees related to enterprises and pushed for a total of 5.2 billion yuan of overcharged fees to be returned to enterprises. 

Fourth, we conducted competition-related law enforcement with strict measures. We bolstered law enforcement against monopolistic practices and unfair competition. We filed cases in accordance with the law to investigate enterprises that ran internet platforms and had been allegedly involved in monopolistic practices. We investigated and dealt with several major and typical cases including the monopoly of active pharmaceutical ingredients and false transactions. We seriously handled cases where enterprises that ran various platforms had failed to offer prior notification of concentration of undertakings according to law and cases involving unfair pricing. We concluded 108 monopoly-related cases, 7,371 unfair competition cases, 473 cases involving the investigation of concentration of undertakings, and we also investigated and dealt with 20,000 price offenses. We fully implemented the review system for ensuring fair competition and organized a thorough clean-up of policies and measures issued before 2019. As a result, we cleaned up 1.07 million policy items, and abolished and revised nearly 6,000 among them. 

Fifth, we improved regulatory practices. Working with 15 departments, we researched and formulated the List of Items for Joint Spot Checks by Market Regulation Departments, covering 74 items in 35 fields. We built the national enterprise credit information publicity system and put it into operation, conducting joint punitive actions on 982,000 companies that committed serious illegal and dishonest acts. 

We work to pursue a better business environment and there is no end to our work. Market regulators will step up efforts to build a market environment that is easier to have access to, fair and orderly for competition, and safe and trusted for consumers. We will work to make contributions to accelerating the building of a high-level market system, improving the socialist economic system, and creating a business environment that is market-oriented, law-based and internationalized. Thanks.

Xing Huina:

Please raise your questions.

CNR:

Ms. Gan just introduced that in face of the COVID-19 outbreak and the downward pressure on the global economy, China's practices on intellectual property right (IPR) protection, improving the business environment and battling against IPR infringement and counterfeiting, have been widely recognized by the international community. What are the specific works that the Office of the National Leading Group on the Fight Against IPR Infringement and Counterfeiting has done? What are their plans for the future? Thanks.

Gan Lin:

Thanks for your question. In 2020, the Office of the National Leading Group on the Fight Against IPR Infringement and Counterfeiting firmly implemented the important speeches and instructions given by General Secretary Xi Jinping and the decisions and plans made by the CPC Central Committee and the State Council. Departments at different levels coordinated with each other and took effective measures to fight against IPR infringement and counterfeiting, achieving great progress. We specifically strengthened our efforts in six areas, which are as follows:

First, we strengthened coordination. The National Leading Group on the Fight Against IPR Infringement and Counterfeiting held nationwide teleconferences, clarifying the major work on fighting against IPR infringement and counterfeiting in 2020, identifying the major tasks and verifying responsibilities. We carried out annual performance evaluation in 31 provincial-level regions and the Xinjiang Production and Construction Corps, to ensure the measures had been put into place. 

Second, we strengthened regulation in major areas. In the internet field, 14 departments carried out special internet market supervision work, or the so-called "Wangjian 2020" joint campaign, to combat illegal activities such as selling infringements and counterfeiting products online and unfair competition. Around 20,000 cases were investigated and dealt with. Meanwhile, four departments launched the "Sword Net 2020" campaign, focusing on combating infringement and piracy in audiovisual works, e-commerce platforms, social platforms, and other fields. We closed 2,884 illegal websites. We continued to carry out the "Iron Fist" campaign of intellectual property law enforcement, and investigated and handled 39,000 trademark infringements and patent counterfeiting cases. In rural and urban-rural fringe areas, six departments jointly carried out special enforcement campaigns to combat counterfeit and shoddy food in rural areas to help poverty alleviation and drive rural vitalization. We organized the "Spring Thunder" campaign to severely crack down on infringement and illegal acts in the field of agricultural materials. We organized market inspections on the spring and autumn crop seeds, and also investigated and dealt with a batch of infringement cases. Key efforts were also made in import and export links. We deployed the campaign for IPR protection named "Longteng," the campaign for IPR protection in shipping and delivery channels named "Blue Net," and the campaign for IPR protection for export transshipment goods named "Clean Net," and seized 62,000 shipments of import and export goods suspected of infringement. In major areas regarding people's livelihoods, we jointly launched special campaigns to implement the "four strictest standards" requirements, with 285,000 food safety violations investigated and handled. We also carried out a special campaign to crack down on the illegal manufacturing and sale of masks and other protective products, and 120 million problematic masks were seized.

Third, we strengthened judicial protection. We cracked down on more than 21,000 criminal cases of IPR infringement and the production and sale of counterfeit goods, arrested more than 32,000 suspects, with the value involved totaling more than 18 billion yuan. Courts across the country concluded 466,000 first-instance IPR cases, a year-on-year increase of 11.7%. The amount of compensation awarded in IPR cases increased by 79.3% year-on-year. We approved the arrest of 7,174 people committing IPR infringements, and prosecuted 12,152 people.

Fourth, we strengthened publicity and promotion. Focusing on major works of different departments across the country, we have given full play to the role of traditional media and new media to guide public opinion. We published a series of reports and typical cases on IPR protection and battling against infringement and counterfeiting for demonstration and guidance. Relying on international organizations, including the WIPO, the WTO and international conferences, we told the "Chinese story" of IPR protection and presented the "Chinese voice" of optimizing the business environment to the world.

Fifth, we strengthened joint governance. Related departments guided companies in the telecommunications and internet industries to sign a self-discipline convention on internet data security. Hangzhou, Nanning and other customs and cross-border e-commerce platforms were guided to explore the establishment of IPR protection cooperation workstations. In addition to that, the first ten local sub-centers of the National Overseas IPR Dispute Response and Guidance Center have been established under guidance. Over 500 IPR dispute mediation organizations have been set up and mediated 24,000 IPR disputes throughout the entire year.

Sixth, we strengthened international cooperation. We signed the China-EU Agreement Protecting Geographical Indications and the Regional Comprehensive Economic Partnership Agreement. The Beijing Treaty on Audiovisual Performances officially came into effect. We held the 3rd Forum on International Cooperation in Fighting against IPR Infringement and Counterfeiting and the 17th Shanghai International Intellectual Property Forum. We actively participated in international operations such as "Operation Opson" against food crimes, "Operation Pangea" against internet crimes of manufacturing and selling counterfeit drugs, and "Operation Cyber Eagle" against internet intellectual property crimes.

This year marks the start of the 14th Five-Year Plan (2021-25) period. The National Leading Group on the Fight Against IPR Infringement and Counterfeiting will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fulfill our duties, pursue innovation, and continue our fight against IPR infringement and counterfeiting. Going forward, we will step up our efforts in the following five aspects:

First, we will promote well-coordinated cooperation. We will ensure that administrative law enforcement, judicial protection, as well as arbitration and mediation, will proceed in an orderly manner. We will also further enhance the synergy between law enforcement and the crackdown [on IPR infringement and counterfeiting].

Second, we will focus on people's well-being and their concerns. We will ramp up our efforts to ensure that crackdowns, regulation and deterrence will work when it comes to the infringement and counterfeiting cases in which the public are concerned and have attracted wide attention, as well as those fields and areas where IPR infringement and counterfeiting cases have frequently emerged.

Third, we will improve regulatory practices. Greater efforts will be made to promote smart and credit rating-based regulation, so as to regulate online and offline infringement and counterfeiting throughout the whole industrial chain in a comprehensive manner. 

Fourth, we will promote public participation. We will strengthen industrial self-discipline, ensure that enterprises fulfill their responsibilities, and stimulate the enthusiasm of consumers, so as to establish a model of fighting infringement and counterfeiting based on collaboration and participation.

Fifth, we will deepen international cooperation. We will establish and improve multilateral and bilateral coordination mechanisms of law enforcement, which will help facilitate information exchange and case investigation, as well as communication and experience sharing, so as to jointly crack down on cross-border crimes. 

Thank you.

China Financial and Economic News:

Strengthening IPR protection is an important means for China to promote scientific and technological innovation, and realize self-reliance and self-improvement in science and technology. What do you think of the role that China's increased IPR protection efforts have played in recent years in promoting scientific and technological innovation and improving its business environment? Thank you.

Mao Jinsheng:

Thank you for your question. By implementing the important instructions made by General Secretary Xi Jinping, as well as decisions and deployments made by the CPC Central Committee and the State Council, and following the directive for intensified protection of IPR which was jointly issued by the General Office of the CPC Central Committee and the General Office of the State Council, the NIPA has improved IPR protection significantly over the past year.

First, we have stepped up efforts to coordinate relevant work regarding IPR protection. The NIPA has worked with relevant departments to study and draft a plan for implementing the Opinions on Strengthening the Protection of Intellectual Property Rights in 2020-21, listing 133 key tasks in detail. It has been issued by the General Office of the CPC Central Committee and the General Office of the State Council. We have established and improved a system in a bid to facilitate communication, information exchange and performance evaluation, and helped local Party committees and governments improve their IPR protection systems in terms of industrial self-discipline, examination and authorization, as well as mediation and arbitration. As many as 30 provinces, autonomous regions and municipalities nationwide have issued their own follow-up policies for implementing the Opinions as of April, thus further clarifying their own responsibilities. 

Second, the legal system for protecting IPR has been further tightened. We have cooperated with relevant departments to complete the fourth revision of the patent law, and established a punitive compensation system for infringements. We also set up the drug patent term compensation system and the early settlement mechanism for drug patent disputes. The protection term for design patents has been extended. In addition, we have stepped up efforts to revise the rules for implementing the patent law, and ensure the revision of relevant systems, including the Guidelines for Patent Examination, Measures for Administration of Trademark Agency, as well as the protection measures for official logos and relevant regulations regarding the protection of geographical indications.

Third, we have further clarified standards for law enforcement and IPR protection, and issued five standard guidelines, such as those for the administrative mediation of patent disputes and standards for judging trademark patent infringement. We are exploring the establishment of a working system to judge and test disputes over IPR infringement, to unify our standards for law enforcement. In 2020, the IPR authorities across the country handled more than 42,000 administrative adjudication cases related to patent infringement disputes, an increase of 9.9% year on year. 

Fourth, the coordinated protection mechanism has been further improved. We have continued intensifying efforts to establish an efficient and coordinated protection mechanism. A total of 40 IPR protection centers and 22 fast-track IPR protection centers which allow rights owners to safeguard their rights more efficiently had been established nationwide by the end of 2020. We have worked with the Supreme People's Court to launch an online mediation and litigation mechanism for IPR disputes. We have ensured that the National Overseas IP Dispute Response and Guidance Center will work efficiently, and helped them set up 10 local sub-centers across the country.  

Fifth, we have enhanced publicity over IPR protection. We have increased publicity on typical cases of IPR administrative law enforcement, as well as patent reexamination/invalidation cases. In the wake of public concerns and focusing on the special tasks of the fight against malicious trademark filings related to the ongoing pandemic, we have launched a series of campaigns to raise people's awareness. We have also organized activities to improve public awareness of laws, and explained relevant laws, regulations and policies regarding IPR protection in a timely manner. 

The achievements in IPR protection have been widely recognized among social sectors over the past year, with the score of social satisfaction on IPR protection reaching 80.05 points. China ranked 14th in the 2020 Global Innovation Index report released by the World Intellectual Property Organization (WIPO). Going forward, we will continue to implement the decisions and deployments made by the CPC Central Committee and the State Council calling for intensified IPR protection, and further improve the business environment to better meet the needs of high-quality social and economic development. Thank you.

Red Star News:

In recent years, online live broadcasting has brought new development opportunities for e-commerce and WeChat business. The management of counterfeit and shoddy goods on e-commerce platforms and WeChat stores has captured people's attention. My question is, what new measures have been taken over the past year in the management of e-commerce, livestream shopping and WeChat business? How can consumers protect their rights when they purchase fake and shoddy goods from livestreams and in online stores?

Gan Lin:

Thank you for your question. I'll answer this one. This issue has attracted much attention. With the rapid development of information technology, infringement and counterfeiting are characterized by such features as an integration of online and offline, organized criminal behavior, and refined division of production and marketing. This has made it increasingly difficult to deal with infringement and counterfeiting. On one hand, laws and regulations need to be improved. On the other, there needs to be innovation in the methods of supervision, such as using internet to manage online platforms to enhance the efficacy of enforcement.

In terms of managing infringements and counterfeiting online, the market regulation authorities have taken a series of effective measures. As I just introduced, the "2020 Sword Net" campaign is a multi-department effort aimed at cracking down on online sales of infringing, counterfeit and shoddy goods, unfair competition, and other illegal activities. It has also produced significant results, with nearly 20,000 cases having been investigated and dealt with. Of course, there are more complaints and informants in this respect. The "Iron Fist" action of IPR enforcement also coordinated both online and offline efforts, with 39,000 cases of trademark infringement and patent counterfeiting being investigated and handled. At the same time, we have also formulated the Measures for the Supervision and Administration of Online Transactions, which will come into force in a few days, on May 1. The Measures makes special provisions for operators of online live broadcast trading of goods. It also makes clear that if online service providers, such as social networks and live broadcasters, provide trading platform services such as online stores, commodity browsing, order generation and online payment for operators, they should fulfill the obligations of online trading platform operators in accordance with the law.

In a word, there is no place online that is outside the law, and the law must be obeyed both online and offline. Operators who carry out online trading activities using such online trading platform services should also fulfill the obligations of operators on the platform in accordance with the law. Platforms have their responsibilities and operators have their obligations, and both must abide by the law.

The management of infringement and counterfeiting online has always been an important part of our "Double Action" work, which has been included in the key tasks of the "Double Action" work for many years, and its implementation has been promoted as a key deployment. All regions and departments are also actively promoting the implementation. Both the "Sword Net" and the "Blue Net" campaigns have achieved positive results. Influenced by the epidemic, live broadcasting e-commerce providers have entered the era of nationwide live broadcasting, so many departments have now also issued the Administrative Measures for Network Livestream Marketing (Trial). Going forward, including livestream marketing, all subjects of online live broadcasts, such as "people, goods and market," "those in front of and behind the camera," as well as "various elements online and offline," should all be included in the scope of supervision. This requires us to step up efforts and take various measures. You will be able to see the results of further enforcement in the future. Thank you.

China News Service (CNS):

My question is for the Ministry of Commerce. What efforts has the ministry made to protect IPR and improve the business environment in recent years? Thank you.

Chen Yusong:

Thanks for your question. Good afternoon to you all. In recent years, the Ministry of Commerce has firmly implemented decisions and plans made by the CPC Central Committee and State Council on enhancing IPR protection and improving the business environment to boost high-quality economic growth.

First, we have been strengthening IPR cooperation and negotiations. Regarding IPR cooperation, we have regular contact with the United States, European Union, Russia, Japan, Switzerland, and other important economic and trade partners. Those contacts are both comprehensive, covering all IPR areas of mutual concern, and cross-sectoral, with full participation from government departments, industries, business associations, experts, and scholars. Through these candid exchanges, we have promoted the resolution of mutual concerns and further increased economic and trade cooperation. Moreover, we have taken an active role in IPR exchanges through multilateral channels, including the WTO, APEC, the Belt and Road Initiative, and BRICS to promote smooth international trade. Concerning IPR negotiations, we have signed the Regional Comprehensive Economic Partnership (RCEP) agreement, which includes a high-level and detailed section on IPR. Its uniform IPR rules have improved the level of regional IPR protection and strengthened international IPR cooperation between related countries. We have also signed the agreement on geographical indications, with high-level protection and wide coverage of more than 500 GI products from China and the EU, further boosting economic and trade cooperation between the two sides. Besides, the Ministry of Commerce has also actively promoted enterprises' early IPR warnings and protection overseas. In 2020, we released 12,186 IPR early warnings on the China Intellectual Property Rights Protection Website (IPR in China), sent 151 articles to WeChat subscribers, and compiled 48 IPR weekly journals and 12 special journals on overseas IPR early warnings to provide in-time information.

Second, we have continued to improve the business environment. Regarding the efforts to improve the business environment for foreign investment, the Ministry of Commerce has implemented the Foreign Investment Law and its enforcement regulations, marking an end to the approval and filing procedures for the establishment and change of foreign-funded enterprises. We have further enhanced the protection of IPRs and trade secrets of foreign-invested companies. We have released the newly revised negative lists on the market access of foreign-invested companies in general and that for pilot free trade zones, cutting numbers of prohibited industries to 33 and 30 respectively. We have published the catalogue of encouraged foreign investment industries (2020 version), increasing the number of industries by more than 10%. We have revised and issued the Rules on Handling Complaints of Foreign-Invested Enterprises to further improve the working mechanism for complaints. Concerning the enhancement of trade facilitation, the Ministry of Commerce has been promoting the implementation of the WTO's Trade Facilitation Agreement (TFA). By January 2020, we had put in place TFA regulations and measures, and worked with related authorities to roll out a number of additional trade facilitation measures, reasonably adjusted import and export management catalogs, continued to use digital and intelligent means to simplify customs clearance procedures and improve port operation modes, expanded single-window functions of international trade, improved customs clearance efficiency, reduced customs expenses and improved the business environment for cross-border trade. Regarding pilot innovation in free trade zones, the Ministry of Commerce has continued to deepen reforms to streamline administration and delegate power, improve regulation, and upgrade services in the area of intellectual property. We focused on innovative financial functions of intellectual property and dispute settlement mechanisms in pilot free trade zones, delegated more power to pilot free trade zones in reform, promoted investment liberalization and facilitation in free trade zones and pilot free trade zones to improve trade facilitation, enhance the capability of the financial sector in serving the real economy, and facilitate the flow of people.

This is a brief introduction of the efforts made by the Ministry of Commerce. We will act with a firm resolve to implement the policy decisions and plans of the CPC Central Committee and State Council and promote domestic coordination and international cooperation in IPR protection. We will promote opening up at a higher-level, improve the business environment and make better use of international and domestic markets and resources to help foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. Thank you.

China Daily:

I would like to ask that while seven theatrical releases including "Hi, Mom" during the Spring Festival 2021 have set new box office records for Chinese New Year film season, the issue of piracy is still arousing concerns. What measures have been taken in this regard? Thank you.

Tang Zhaozhi:

Thank you for your question. From February to March this year, in order to regulate the copyright order of the film market, the copyright management division under the Publicity Department of the CPC Central Committee, the China Film Administration under the Publicity Department, and the Food-and Drug-Related Crime Investigation Bureau of the Ministry of Public Security jointly deployed and carried out centralized action to crack down on the distribution of movies pirated by recording in theaters. We adopted a variety of effective measures to severely crack down on the illegal and criminal activities of piracy and distribution of theatrical releases during the Spring Festival.

We have carried out the work in the following aspects. First, we deployed an early warning protection system. On Feb. 8, the National Copyright Administration (NCAC) released the second list detailing the key works for copyright protection in 2021, and included seven Chinese New Year theatrical releases including "Hi, Mom" into the early warning protection system. We asked providers of various internet services such as content, storage, search links, e-commerce websites, and app stores to take effective measures to prevent and promptly deal with infringement and piracy behaviors such as pirated recording and distribution of theatrical movies.

Second, we strengthened patrolling and monitoring. Local copyright and film authorities have strengthened the patrolling management of movie theaters, strictly guarded against covert filming and recording, and intensified online inspections and piracy monitoring. During their concentrated operations, the local copyright and film authorities focused their inspections and patrolling on the screening and distribution of seven Spring Festival theatrical releases, dispatched law enforcement personnel more than 36,500 times, inspected theaters, on-demand theaters and other venues more than 11,800 times, and inspected various websites over 2,682 times. According to monitoring results, there was no occurrence of piracy or infringement on legitimate video websites. Pirated content and links are mostly spread illegally through social platforms, online cloud storage, e-commerce platforms, and unregistered small websites without getting permits to provide internet content and online broadcast services. Most of such small websites are placed on servers outside of China.  

Third, we quickly dealt with infringements. Local copyright and film authorities arranged multi-shifts and multi-line responses, carefully screened and systematically sorted out the complaints of rights holders and the information reported by the public, and supervised and urged all internet service providers to take emergency measures to quickly delete more than 30,000 infringing links related to theatrical releases during the Spring Festival.

Fourth, we investigated and handled major cases. Local copyright and film authorities and public security organs have strengthened their efforts to identify clues and actively find the sources of cases, identifying a number of secret filming and recording suspects. Public security organs launched criminal investigations to hold the wrongdoers criminally responsible in accordance with the law, and promoted the investigation and handling of cases to trace their roots, break up gangs and destroy networks. At present, 39 key cases involving infringement and piracy of cinema films have been investigated and handled around the country, and 45 infringing websites have been shut down, effectively curbing the momentum of pirated movie recordings in cinemas.

Next, local law enforcement agencies will dig deeper into the sources of piracy, increase efforts to crack down on secret filming and pirated recordings in theaters, and severely investigate and punish websites, WeChat public accounts, and e-commerce operators that sell and distribute pirated films. They will supervise and urge all online platforms to strengthen the main responsibility of enterprises, and in accordance with the law, severely penalize acts of pirating and disseminating theatrical releases which would generate strong complaints from the right holders and cause great social harm. This will create a good social atmosphere that respects copyright and creation, and promotes the prosperity and healthy development of the film industry. Thank you.

National Business Daily:

The General Office of the State Council recently released a notice on this year's key tasks concerning government transparency, stating that government departments should make information related to law enforcement on anti-monopoly and anti-unfair competitive practices more transparent, and exercise impartial regulation equally across the board. What arrangements does the State Administration for Market Regulation have in this regard? Thank you.

Gan Lin:

Thank you for your question. It is fair to say that we have always been committed to disclosing information on law enforcement regarding anti-monopoly and anti-unfair competitive practices. We conscientiously conduct our work based on the key requirements set by the General Office of the State Council regarding government affairs transparency. 

Regarding the disclosure of information for law enforcement on anti-monopoly, we conducted the following tasks. 

First, we disclosed legislation information in a timely and active manner. For example, those rules and documents related to the latest regulations and guidelines on anti-monopoly practices. Second, we made information related to specific cases accessible to the public in accordance with the law. We published law enforcement information, law enforcement notices, and relevant legal documents on monopoly cases and explained the handling of cases to create a deterrent for further violations so that the public and the society can truly feel a sense of fairness and justice.

Third, we disclosed interpretations of major policies. We provided policy interpretations through illustrations, articles, and press briefings. For example, when disclosing information regarding cases of wide public concern, the person in charge of our anti-monopoly bureau was invited to answer questions from the media, experts were invited to write interpreting articles, and press conferences were held to release authoritative information. At the same time, since anti-monopoly practices attract international attention, we have expanded publicity and advocacy to effectively level the playing field and create a favorable social atmosphere for fair results. This is the anti-monopoly information disclosure.

Regarding the disclosure of information for law enforcement on anti-unfair competition, we know in 2017, China amended the Anti-Unfair Competition Law. One of the amendments defines specific regulations for disclosing information on administrative penalties. Specifically, businesses fined for violating the Anti-Unfair Competition Law should have their credit history recorded by the supervision and inspection department, which in turn should be made public in accordance with relevant laws and administrative regulations. The administrative punishments handed out by market supervision departments at all levels should then be disclosed via the national corporate credit information disclosure system. The State Administration for Market Regulation has disclosed recent administrative punishments for unfair competitive practices through a website launched last year specifically designed to disclose punishment letters in full as part of efforts to increase the transparency of law enforcement.

In the future, we will further beef up efforts to disclose information on law enforcement regarding anti-monopoly and anti-unfair competitive practices, increase the publicity of cases that violate the law, and explain the handling of cases as part of a legal education drive. Thank you.

Xing Huina:

This is the end of today's press conference. Thank you, to our four speakers and journalists from the media.

Translated and edited by Zhu Bochen, Wang Qian, Liu Sitong, Zhang Rui, Cui Can, Fan Junmei, Gong Yingchun, Li Huiru, Xiang Bin, Liu Qiang, Yang Xi, Duan Yaying, Zhang Liying, He Shan, Zhou Jing, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.