BEIJING, Nov. 22 (Xinhuanet) -- China's burgeoning cultural industry needs an edge, insiders say.

    "The Chinese cultural industry has been left 10 or 20 years behind those of advanced countries in terms of marketing, opening and global competition," said Long Yongtu, secretary-general of the Boao Forum for Asia, during a seminar on the sidelines of the first International Cultural Industry Fair Shenzhen that closes today.

    Foreign capital, technology and management should be introduced to speed up globalization of the industry, he advised.

    "Joint ventures and foreign co-o-operation should be encouraged in the cultural industry as long as the Chinese side holds the controlling stake in the beginning," Long said.

    He also said the industry, especially film production, could learn from the processing industry in the early 1980s, which sought to attract foreign capital, technology and management while exporting finished products.

    But the content should come from Chinese culture, he stressed.

    "It's a good way to solve the problem of fund shortages for film making in China, a short cut to the global markets with the participation of world famous directors, actors or actresses and an easy way for foreigners to understand China," he noted.

    China's culture has a long and brilliant history but is far from shaping a mature market and has been long closed to foreign investment.

    Last year, the added value of the cultural industry in China, including media, advertisement, cultural entertainment, publishing and cultural tourism, contributed less than 1 per cent to the country's gross domestic product (GDP). That number is expected to double in 2005 driven by the growing demand for cultural products and an improving business environment.

    In Beijing alone, the contribution from the cultural industry to its GDP reached about 5 per cent and Shanghai 7 per cent last year. However, the percentage becomes quite tiny when compared with the 20 per cent mark in advanced countries.

    While a number of big media groups are emerging around the country after a round of mergers, Long suggested the media groups should sharpen their competitive edge and diversify contents to take a bigger slice in the global cultural market.

    Jamie Davis, president of Star China, which has nine channels and is the most successful foreign television operator in the country, agreed with Long that TV producers could make more non-sensitive products such as entertainment programmes, music and film to enrich content.

    As a foreign player, he said its success heavily lies in the indigenization strategy, which aims to bring in international ideas and concepts while adding content relevant to local people.

    Yan Xiaopei, vice-mayor of Shenzhen, reiterated that culture will play a more important role in the young city to improve its competitiveness and speed up economic development.

    The city plans to lower the barriers for market access to allow more private and foreign capital in the cultural industry, she said. Enditem

    (China Daily)