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101,900 minutes. In 2008, another important rule was issued that during the golden hours (5pm to 8pm),

overseas animations are forbiden to broadcast on TVs. This policy aimed to encourage the production of domastic products. Additional policy including awards from regional government and clusters, tax and service

related issues attracted many SME studios and large companies to expand their business range. By the end of 2008, there were 6463 animation related companies and orgnasations national wide with 4 animation TV stations (Beijing Kaku, Shanghai Xuandong, Hunan Jiying, Guangdong Jiajia) (Figure 5), 34 TV stations for

children and 447 universties providing relvent courses. Clusters grow as a base for SMEs to grow and resource for large companies. There are 71 clusters/bases, 44 of which are authorised directly by central government offices (Appedix I), mainly locaded in Beijing, Pearl River Delta, Yangtz River Delta and Hunan province.

Province

Local

children

children

TV stations

TV stations

Figure 5: Chinese animation TV stations

Besides governent policy, animation products have large market space in China. In the past five years there was increasingly market demand in China for anmiation products including movies, TVs, mobile games and internet games. In 2005, the annual sales of children audio & video publication reached RMB 10 billion. The demand and market scale are increasing (Figure 6). The market for game espectily online game and mobile game is huge. This is because of the broadband development in China, with tens of millions of new participants joining

the internet world every year (Pew Internet Report, 2007). From 2004 to 2006, the internet population in China

Province

Local

children

children

TV stations

TV stations

Figure 4: Annual productions of Chinese animation industry Adapted from 2008 Chinese animiation industry report

CCTV animation

Four animiation TV stations

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