China Encourages Internet Cafe Consolidation
ChinaByte, 9/21/09
China's Ministry of Culture has issued regulations and favorable policies to encourage Internet café chains to acquire individual cafés.
The regulations define a national Internet café chain as having a minimum of RMB 50 mln in registered capital, and at least 30 locations under direct management in which the company holds at least a majority stake, and cafés in at least three different provinces. Regional café chains are defined as having no less than RMB 10 mln in registered capital and at least five locations under direct management, either wholly-owned or in which the company holds a majority share. The regulations go into effect on October 15.
Editor's Note: In 2003, the Ministry of Culture defined a national Internet café chain as operating a minimum of 20 locations in at least two provinces, and a regional chain as operating at least 10 cafés. National chains fall under the authority of the State Council's cultural administration department.
Keywords: Internet cafe Internet consolidation Ministry of Culture State Council regulation M&A
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