The process will be public, fair and just, Kan said. Bookstores will be evaluated for their service, environment and contribution to local cultural activity. Bookshops in university towns, the Central Business District and residential communities will all be considered, as well as small shops in the countryside.

There are 6,000-7,000 registered retailers of books, newspapers and other publications whose annual sales volume totals 11 billion yuan, Kan said.

Private bookstores responded enthusiastically to the new policy. Shi Jianfeng, who opened a small bookshop-library named 2666 in a community of Jing'an district, said that the subsidy will help the shop deal with the pressure of rent costs.

Yan Bofei, president of Jifeng Bookstore chain, with three shops, said the policy was a positive step on a long journey. He suggested that more policies and regulations might come up for discussion in the future.

The publishing industry gave positive feedback, too. Huang Yuning, head of the literature department at Shanghai Translation Publishing House, said shops that display actual books encourage people to read and have irreplaceable advantages over online shops.

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