With the upgrading new technology and new application of mobile network, network live broadcast industry has entered into a rapid developing period, deeply effects the network environment with the outstanding characteristics on media, social life, commerce and entertainment. Meanwhile, there are many problems existing in the network live broadcast industry like the deficiency of entity liability, inappropriate content or environment, uneven differences between performers, lack of regulation for recharging and rewarding, mess of commercial marketing and right violations among teenagers. These problems have limited the healthy development of network live broadcast industry and brought out big challenges for ideology safety, public interests and legal rights of citizens, it need to be highly valued and solved. As a result of which, in order to further regulate the management of network live broadcast industry and promote healthy and orderly development of the industry, seven departments have issued this Guiding Opinions on Network Live Broadcast Regulations and Managements together on February 9^th, 2021.

1. Make sure the entity responsibility

• Determine the entity responsibility for platforms. Network live broadcast platforms which provide Internet live broadcast information services, shall strictly abide by laws and regulations and relevant regulations of the state. Implement the list of entity responsibilities for network live broadcast platform and the management systems such as content audit and user registration based on major problems within the industry.
• Legal responsibility for performers. Implement the network real-name account registration and standardize the use of account name. Network performers shall not publish Internet news information beyond the scope of permission, shall not accept the recharging and rewarding from minors without the consent of their guardians, and shall not engage in illegal transactions within the platform or across platforms.
• Strengthen the regulations for user behaviors. When users participate in the live broadcast interaction, they shall not organize or incite attack or abuse on network performers or users, shall not use software or organize "paid Internet trolls" to make negative comments and fake trends, and shall not create bad interactive atmospheres such as showing off money or gaining eyeballs.

2. Correct leading and content safety

• Raise the leading position of main value. Network live broadcast platforms shall support those performers with high qualities, provide more contents with good values and train the performers to have a right view of world, value and life.
• Protect the rights of Internet users. Platforms shall strictly follow the relevant regulations on the protection of personal information, fully protect the legitimate rights and interests of users such as the right to know, the right to choose and the right for privacy, guide and standardize users' reasonable consumption and rational rewarding.
• Strengthen the protection for minors. Platforms shall strictly prohibit performer account registration services for minors under the age of 16, and shall obtain the consent of the guardian for the network performer account registration services for minors between the ages of 16 to 18. A “teenage mode” shall be provided to prevent minors from obsessing with the network live broadcast, and block the contents which might be unhealthy for them, and prohibit for the recharging and rewarding from minors. The exclusive customer service team for minors shall be established, priority to accept and timely to handle complaints and disputes involving minors. For those minors using adult accounts for rewarding performer, it must be refunded after verification according to due regulations.
• Build information security blocks. Platforms shall strictly implement the responsibility system for the security management of information contents, and shall have due safe and controllable technical guarantees and preventive measures. For those non-real live broadcast information contents produced and published by using technologies such as in-depth learning and virtual reality, they shall be marked in a prominent way.
• Severely punish illegal acts. Resolutely crack down on illegal criminal activities using network live broadcast, and comprehensively clean up illegal and bad information such as vulgarity and feudal superstition.

3. Build overall systems and regulations

• Strengthen the access record management. The live broadcast platform that carries out the business network performance activity must hold the "Internet culture business license" and file the ICP record. The live broadcast platform that carries out the network audio-visual program service must hold the "information network dissemination audio-visual program license" (or complete the registration at the Information Registration Management System for National Network Audio-visual Platform) and file the ICP record. The live broadcast platform that carries out the Internet news information service must hold the "Internet news information service license".
• Build the mechanism within the industry. Establish the classification standard management system for live broadcast accounts based on the main attributes, operating contents, number of fans, live broadcast heat and other factors. Reasonable limits shall be set for different categories of network live performer accounts in the fields of top rewarding amount for single perform, heat, time, perform sets in one day and due time interval.

4. Improve the comprehensive management

• Establish and improve the working mechanism. Strictly implement the management requirements of the real name system of network access, strengthen the management of ICP record and the supervision in the field of network live broadcast marketing, study and formulate the management norms and admission standards of network audio-visual programs.
• Actively advocate social supervision. Platforms shall effectively broaden the reporting channels, simplify the reporting links, accept, resolve and feedback public complaints and reports in a timely manner.
• Organized function of industry. Establish and improve the credit evaluation system for network live performers, advocate industrial self-discipline, actively hold public welfare activities, participate in purifying the network environment and maintain the good network ecology.

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Mr. Mike Chang (Partner)

TEL: 0086-21-68868321

Email: mikechang@shanghaiinvest.com