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CHINA: An Introduction to TMT: Media & Entertainment (PRC Firms)

The New Era of Compliance: Challenges and Growth in China's Entertainment Sector

Against the backdrop of economic restructuring and a product upgrading, China’s economy is entering a brand-new stage of development. Although the entertainment and media industry faces short-term challenges such as declining movie box office sales, sectors such as short videos, live streaming e-commerce, sports, AI-generated content (AIGC), and micro-short dramas show robust growth potential. The phenomenon of differentiation within the industry is both influenced by stringent policy regulation and also indicative of the driving forces inherent in the market. On the one hand, the legal service industry faces challenges posed by the vast compliance demands from clients in the entertainment industry and the emergence of new business forms. On the other hand, it is embracing unprecedented opportunities in legal services.

Strengthened regulation and the reshaping of the industry

Since 2024, the intensity of regulation has been comprehensively upgraded for the culture, entertainment, sports, and arts industries, making compliance a pivotal factor for both corporate survival and market competitiveness. This change is manifested in a variety of ways, as set out below.

Anti-corruption and anti-fraud

With the implementation of Amendment (XII) to the Criminal Law, the criminal regulations against corruption have been further strengthened, and the class of persons that can be held responsible for illegal activities, such as illegally engaging in similar businesses and seeking profits for relatives and friends, has been expanded to include senior management of private enterprises. In the sports and entertainment fields, new verdicts in a series of anti-corruption cases in Chinese football have demonstrated the country’s zero-tolerance stance towards corruption. Meanwhile, internet giants such as Tencent and ByteDance have also intensified their internal anti-fraud efforts to ensure compliance in operations.

Construction of the online ecosystem

In 2024, relevant policies and regulations concerning the online ecosystem have been further improved and implemented. For instance, the revision of the Implementing Regulation for the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests and the Regulation on the Protection of Minors in Cyberspace has strengthened the protective framework for potentially vulnerable groups in the online world, such as the elderly and minors. The issuance of the Interim Provisions Against Unfair Competition in Cyberspace and the Enforcement Guidelines on Identifiability of Internet Advertisements has focused on the healthy development of the digital consumption ecosystem. Regulatory authorities have strictly supervised live streaming rooms on popular platforms and imposed penalties for illegal promotional activities. These measures have not only maintained market order but also provided clear compliance guidelines for platforms and multi-channel network institutions.

Content regulation and data protection

In the realm of data security and personal information protection, the issuance of the Regulation on Network Data Security Management as China’s first administrative regulation in the field of data security, the implementation of the Rules for Data Classification and Grading in Data Security Technology as a supporting industry operational guide, and the adoption of systems such as the “Negative List for Free Trade Zones” and “Exemption from Declaration” in the Provisions on Promoting and Regulating Cross-border Data Flows have established a multi-layered regulatory framework. These developments reflect China’s legislative trend of “scenario-specific refinement, implementation of supporting regulations, and cross-border collaborative governance”. Meanwhile, the National Radio and Television Administration has issued new notices imposing a series of strict management measures on the micro-short drama industry, including “classified and tiered review” and “review before broadcast”. The Cyberspace Administration has continuously deepened the “Clear and Bright” campaign, specifically cracking down on online water armies (users who are paid to post online comments and thus “flood” social networks and internet forums) and the posting of illegal information suspected of infringing upon the rights of minors and enterprises. In 2025, the emphasis will be on AI technology management and information content management, strengthening the identification of generated and synthesised content, combating the issuance of false information leveraging AI technology, and regulating the online ecosystem of AI applications. These initiatives collectively form a tight regulatory network, providing robust safeguards for the prevention and governance of emerging risks.

Code of conduct for practitioners

In 2024, legislation in the culture, entertainment and sports sectors further strengthened behavioural constraints on practitioners. Tax violations, breaches of advertising laws scandals involving public figures that violated social norms or public order have garnered significant attention. Cases of tax evasion by online streamers have occurred frequently, with those streamers who evaded taxes by splitting income, falsely increasing costs and other means ultimately facing severe penalties. Additionally, some celebrities and athletes have sparked negative public opinion through controversies in their personal lives, potentially leading to substantial civil compensation and even administrative penalties.

Entertainment industry trends and new business models

Entering 2025, stringent regulation and technological innovation are jointly shaping new trends in demand for legal services within the entertainment and media industry. Given the recovery in investment levels, financing and the M&A market, enterprises need to achieve higher compliance thresholds. There has been a notable increase in M&A activities in the media and sports industries, particularly as sports industry players such as Anta and Li Ning actively integrate resources through cross-border M&A. However, with the introduction of numerous new regulatory measures and the regulatory trends in technology transactions resulting from geopolitical factors, transaction structures are facing more restrictions, requiring enterprises to exercise greater caution in investment, financing and M&A activities.

Meanwhile, the emergence of new business models is forcing innovations in judicial practice, and a number of representative or controversial cases have arisen. China’s first breach of contract case involving a “human behind the vtuber” (a virtual streamer), and the recognition of marital joint property in the form of tips in the Interpretation of the Supreme People’s Court on the Application of Marriage and Family Part of the Civil Code of the People’s Republic of China (II), both demonstrate the rapid judicial response to industry changes. Against this backdrop, enterprises need to establish a “legislation-technology-ecosystem” collaborative compliance system, particularly by making advance preparations in key areas such as cross-border data flows, AI ethics, and tax processing, in order to effectively avoid heavy fines and damage to corporate reputations.

Furthermore, artists and internet celebrities need to strictly comply with tax and advertising compliance requirements, sports clubs face higher barriers to entry and requirements for financial transparency, and technology enterprises must address legal risks associated with AI training data and users generating infringing content with AI tools. These challenges require industry participants to continuously enhance their legal awareness and ensure the compliance of their actions.

Embracing challenges and looking ahead: legal needs and industry transformation

Looking back at the past year, the entertainment industry has made remarkable achievements, with an endless stream of high-quality content continuously breaking industry records. Looking ahead, the period from 2024 to 2025 may become a crucial transformation phase for China’s entertainment and media industry. Supported by policy dividends, technological changes will become a significant driving force for industry development, giving rise to new entertainment forms and business models and enhancing both the efficiency and quality of content creation. Rising consumption will reshape the market landscape, with the rise of female and Gen Z consumer groups further driving the reconfiguration of the industry.

Drawing on their rich experience and foundational advantages in intellectual property and entertainment media, media lawyers will need to engage deeply with clients to provide legal services and research in emerging areas such as AI, blockchain, virtual idols, algorithms and data compliance.

合规新纪元:中国娱乐行业的挑战与成长

在中国经济结构调整与产品升级的宏观背景下,中国经济正步入一个全新的发展阶段。娱乐传媒行业,虽面临电影票房下滑等短期挑战,但短视频、直播电商、体育、人工智能自动生成内容(AIGC)、微短剧等领域却展现出强劲的增长潜力。这种行业内部分化的现象,既受到政策严格监管的影响,也彰显了市场的自我驱动力。对于法律服务行业而言,一方面面临来着自娱乐行业客户大量合规需求以及新兴业态等挑战,另一方面也将迎接法律服务前所未有的机遇。

监管强化与行业生态重塑

2024年以来,文娱体育艺术行业监管力度全面升级,合规已成为企业存续与市场竞争的核心要素。这一变化体现在以下多个方面:

反腐败与反舞弊

随着《刑法修正案(十二)》的实施,反腐刑事规制进一步强化,涉及非法经营同类营业、为亲友牟利等违法行为的责任人员范围已扩大至民营企业高管。体育与娱乐领域,如中国足球反腐系列案的新宣判,彰显了国家对腐败零容忍的立场。同时,互联网巨头如腾讯、字节跳动也加大了内部反舞弊力度,确保了合规经营。

网络生态构建

2024年,如《消费者权益保护法实施条例》和《未成年人网络保护条例》的修订,强化了对老年人、未成年人等网络世界中潜在弱势群体的保护框架。《网络反不正当竞争暂行规定》与《互联网广告可识别性执法指南》的发布,聚焦于数字消费生态的健康发展。监管部门对热门平台上的直播间进行了严格监管,并对违法宣传等行为进行了处罚。这些举措不仅维护了网络环境,也为平台与MCN机构提供了明确的合规指引。

内容监管与数据保护

在数据安全与个人信息保护领域,《网络数据安全管理条例》作为我国首个数据安全领域行政法规立法发布、《数据安全技术 数据分类分级规则》作为配套行业操作指南落地、《促进和规范数据跨境流动规定》通过“自贸区负面清单”“豁免申报”等制度实现安全开放,构建了多层次的监管框架,体现了我国“场景化细化、配套规范落地、跨境协同治理”的立法趋势。同时,国家广播电视总局新发布通知对微短剧行业实施了系列包括“分类分层审核”“先审后播”在内的严格管理制度。网信部门也持续深化“清朗”行动,专项打击整治网络水军及涉嫌侵害未成年人和企业的侵权违法信息,而2025年则要突出AI技术管理和信息内容管理,强化生成合成内容标识,打击借AI技术生成发布虚假信息等问题,规范AI类应用网络生态。这些举措共同织就了一张严密的监管网络,为新兴风险的防范与治理提供了有力保障。

从业者行为规范

2024年,文娱体育领域的立法进一步强化了对从业人员的行为约束。税务违规、广告法违法行为以及违背社会公序良俗的公众人物失德行为备受关注。网络主播偷税案件频发,这些主播通过拆分收入、虚增成本等方式逃避纳税,最终面临严厉处罚。同时,一些明星、运动员因行为不当而引发社会舆论或负面事件,从而可能引发巨额民事赔偿,甚至受到行政处罚。

娱乐行业趋势与新兴商业模式

步入2025年,强监管与技术创新正共同塑造娱乐传媒行业的法律需求新态势。面对理性复苏的投融资并购市场,企业需跨越更高的合规门槛。传媒与体育行业并购活动显著增长,特别是安踏、李宁等体育产业积极通过跨境并购整合资源。然而,随着大量监管新规的出台和地缘政治带来的在技术交易方面的监管趋势,交易结构面临更多限制,要求企业在投融资并购活动中更加审慎。

与此同时,新型业态的涌现也促进司法实践的创新,出现了一些有代表性或有争议的案例。中国首例虚拟主播“中之人”违约案、《最高人民法院关于适用〈中华人民共和国民法典〉婚姻家庭编的解释(二)》中对夫妻共同财产打赏的认定等,均体现了司法对行业变化的快速响应。在此背景下,企业需构建“立法-技术-生态”协同合规体系,特别是在数据跨境、AI伦理、税务处理等关键领域提前布局,以有效规避高额罚款与商誉损失。

此外,艺人、网红需严格遵守税务与广告合规要求,体育俱乐部面临更高的准入门槛与财务透明度要求,科技企业则需应对AI训练数据和用户使用AI工具生成侵权内容的合法性风险。这些挑战要求行业参与者不断提升法律意识,确保自身行为的合规性。

迎接挑战,展望未来:法律需求与行业变革

回顾过去一年,娱乐行业取得了显著成就,优质内容层出不穷,不断突破行业纪录。展望未来,2024年至2025年或将成为中国娱乐传媒行业转型的关键时期。在政策红利的支持下,技术变革将成为行业发展的重要驱动力,催生新娱乐形式与商业模式,提升内容创作效率与质量。消费升级将改变市场格局,女性与Z世代消费群体的崛起将进一步推动行业生态的重塑。

凭借在知识产权和娱乐传媒领域的丰富经验和基础优势,律师们已深度参与到AI、区块链、虚拟偶像、算法与数据合规等新兴领域的法律研究与服务中。