Record companies don’t even bother with traditional album style record contracts or setting up distribution networks and instead concentrate more on talent management and making money in ways other than selling recordings. New artists have to spend their own money to promote themselves because record companies can’t do it.

Only 20 or so professional-quality albums are produced a year in China. Star musicians make their money from appearances, live performances and endorsement deals. Concerts have become big promotions, with several artists sharing the stage so sponsors get the most bang for their money. An industry-created all-girls group called Mei Mei group had a two year contract with M&M candy before any members had even been selected.

The singer Wang Lee Ho told the International Herald Tribune, “Pirates have already killed China’s music industry dead. It frustrates my life and destroys China’s creative future.” Hohas shown up at promotional appearances of a traditional sword up to an oversized CD with the Chinese character for theft

An executive with Warner Music Asia told the International Herald Tribune, “There is no income from the royalties, so artist in China record single songs for radio play instead of albums for consumers. Stars need to look elsewhere to finance the rock-star lifestyle.”