File photo: A showroom of the Shuangjing UME International Cineplex in Beijing. Photo: Xinhua

A new draft on the law created to promote China's film industry issued by the State Council on Thursday has begun soliciting public opinions on the latest stipulations, which include easier shooting access for film companies and decreasing pre-movie advertisements.

The statement issued by the Legislative Affairs Office of the State Council said movie companies can shoot films in China as long as they have an authorized shooting permit and submit the film script to the proper authorities.

According to the statement, a number of positive financial and tax measures, including preferential land trading policies for building more cinemas, and an increase in government-funded film projects, are also among the proposals within the new draft.

"The loosening of film shooting regulations along with the encouragement of investment policies will make the film industry more inviting for filmmakers and investors," Lu Di, a film professor at Peking University, told the Global Times on Thursday.

Lu's words were echoed by Yin Hong, deputy director of the School of Journalism and Communications at Tsinghua University, by saying that all the proposals in the new draft could preserve China's film reforms, which began in 2003.

Yin told the Global Times that most of the proposals have already been established within some of the regulations from local authorities. However, he added that "law at a higher level could prevent illegal activities, such as concealing box office revenue and making illegal copies of films, more effectively."

Cinemas which screen pre-movie ads will be fined up to 200, 000 yuan ($31,500), and can also have their licenses revoked, and they could also face punishment for concealing box office revenue, according to the statement.

Last year, the Chinese box office generated over 10 billion yuan ($1.6 billion), a 63.9 percent increase from the same period in 2009 according to a report conducted by the Chinese Academy of Social Sciences. The country is now ranked as one of the world's top-ten film markets and China's box office revenue is expected to reach 13 billion yuan ($2 billion) for the year, the report said.

"The promotion of films, with the highest distribution and circulation abilities among other cultural forms, could greatly elevate China's soft power and international impact," Yin said.

However, he also said it was unfortunate the new draft did not include a film rating system, something which is widely used throughout the world in order to help regulate the film industry.

But the latest draft has added three new restrictions regarding film content to the original list of 10, which were first established within the Regulations on Administration of Films in 2002.

New items include the restriction on films which inspire activities that block the implementation of China's constitution, laws, and administrative regulations. Furthermore, films which encourage religious fanaticism or damage religious harmony and unity are also prohibited. And separately, films which instigate drug use or pass on crime methods, or include content which could harm legal interests or threaten the physical and psychological health of minors, are all forbidden to play on China's cinema screens.

"The increase in regulations regarding film content are probably meant to supplement to the absence of a film rating system in order to help authorities better manage the censorship of a film," Yin said.

Xinhua contributed to this story.