As recent news reported, the streaming subscription music website Pandora will enter China and is head-hunting a capable CEO. This is definitely a great news for music fans in China. But the question you may ask is that, whether this music streaming service can legally operate in China? You know the environment here is kinda of complex.

On one hand, as classified in “China Telecom Business Category” issued by Ministry of industry and information (the “MII”), Pandora’s music streaming service is the Information Service business in the category of Value-Added Telecommunications Service. The foreign-invested telecommunication enterprises may run such business with equity holding of no more than 50% of total, which is specified in the “Provisions on Administration of Foreign-invested Telecommunications Enterprises” promulgated by China State Council. On the other hand, by the “Catalogue for the Guidance of Foreign Investment Industries” issued by Chinese Ministry of Commerce, the online music service also belongs to the Internet Culture business which is actually CLOSE to foreign investors.

So, the answer for Pandora seems a NO. However, you may still find a way. The followings are three typical cases of other foreign-invested enterprises entering into China market, which Pandora can take for reference.

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