In 2001, the audiovisual market in China concentrated on the reduction of the total amount readjustment of the structure, reorganization and development to manage the audiovisual market. It efficiently held back the smuggling and pirated audiovisual products and promoted the manufacture and distribution of the legal products. As a result, there was an increase of 10% of the distribution of the legal audiovisual products.

In accordance with the requirement of closing the centralized businesses for audiovisual products by the State Council and Ministry of Culture, the local governments worked closely with the public security and local administration for industry and commerce and the local administration for audiovisual markets overcome all the difficulties and closed 216 centralized businesses of illegal audio visual products. Since 1999, 277 illegal centralized businesses and distribution places were closed and 8600 business units were cancelled the license certificates or closed or moved out.

In February, April and October of 2001, the Ministry of Culture issued the list for investigation and strengthened the cracking of the smuggling and piracy for purpose of the management of the audiovisual market. To accord with the Proposal of Management of the Audio Visual Market by the Ministry of Culture, Ministry of Public Security, SAIC and General Administration for Press and Publication, the Ministry of Culture started one-month campaign against the distribution of illegal political audio visual products, seized the contraband audio visual products and smuggling and pirated products related to violence, obscenity and evil. On December 2, more than 200 cities across the country damaged 18.3 million pieces of illegal audiovisual products, and 100 million were damaged in one year.

The audiovisual business units were required to be reexamined and re-registered, and the structure were readjusted so as to improve the competitiveness of the nation audiovisual market. In Hubei province, while strengthening the management, the qualification for the audio visual businesses were established and the total amount of the stores for retail and rent were reduced 30%. In Hebei province, great achievement was made in reduction of the total amount and readjustment of the structure after half-year management for the audiovisual market. The amount was reduced to less than 3000 audiovisual businesses from 10000.

In March 2001, the Ministry of Culture issued the Notice on the Promotion and Management of the Chain Business of Audio Visual Market in which clarified the requirement and examination and approval methods for the chain audiovisual business. It promoted the development of the local chain business. In Shanghai, after several year's effort, there established a chain business nerwork for audiovisual products, which was standard, competitive and complementary. In Hubei province, efforts had been made to promote the development of the provincial market and readjust the structure of the audiovisual supermarket. They invited bids to encourage and develop the audiovisual supermarkets, chain stores and special stores. In Shandong Province, while managing the audiovisual market, great assistance was given to the audiovisual special stores to promote the legal audiovisual distribution network and develop the chain business in order to create a fair and competitive enviroment for the legal audiovisual products.

In September 2001, the Ministry of Culture carried out the 3rd National Event of Legal Publicity for Audiovisual Market entitled "Manage the market order, develop the audiovisual industry". The ministry printed and issued 5 kinds totaling 80000 pubilcity pictures. Local audiovisual administrative agencies took an active attitude and conducted various activities with view to create a favorable working environment for the management of the audiovisual market, so that the awareness will be rooted in people to fight against the piracy and protect the intellectual property.

On December 25, 2001, the State Council issued the newly revised Regulations for the Management of the Audiovisual Products. The regulations clarified the administration system for the audiovisual products from the central government to the local government and strengthened the surpervision of the content of the dissemination and enlarged the scope for market access. The new regulations provided legal security for the management and prosperity of the audiovisual market, and created more and better guarantee and new opportunities for the development of the audiovisual industry.