ABSTRACT
Before economic liberalisation in 1978, the culture sector was arranged as work units, which followed the lead of the Chinese Communist Party (CCP) and obtained financial support from the party-state. The transformation of the culture sector during the reform era provided an opportunity for foreign popular culture products to circulate in China while at the same time, the party-state had not loosened its ideological control. Essentially, the Central Propaganda Department is involved in the development of state cultural policy. This chapter outlines the institutional backdrop for the subsequent discussion of the public's reactions to imported Japanese and Korean pop culture. It explains why Japanese and Korean pop culture is able to enter China's cultural market, despite the fact that the party-state continues to monitor the culture system closely. The chapter emphasizes on the market liberalisation and state control. Popular culture can also be a matter of political significance.
