After a long wait, the Film Industry Promotion Law of the People’s Republic of China (“Film Industry Promotion Law”) was finally adopted by the Standing Committee of the National People’s Congress (NPC Standing Committee) on November 7, 2016. It will enter into force on March 1, 2017. The Film Industry Promotion Law will form a fundamental legal foundation for the film industry. Therefore, its promulgation has more than simply symbolic significance. Preparation for the law began as early as the 1980s. Nonetheless, the first draft for soliciting opinions was released on December 15, 2011. The past five years witnessed three rounds of deliberation by the NPC Standing Committee. The Film Industry Promotion Law encompasses all manner of production in the film industry, from film creation, to production, through distribution, and finally to movie screening. With the rapid development of its film industry, China has become the second largest film market in the world. However, China’s film industry still faces particular problems, including unitary themes, a deficit of originality, mediocre quality, lackluster production values, and even box office fraud. The Film Industry Promotion Law streamlines administration so as to stimulate creativity in the film market. It also aims to strengthen regulations prohibiting irregular practices in the film industry and provide powerful legal protections for film development. As the first law of China directly covering the cultural sector, the Film Industry Promotion Law will have long-term and profound influences on the development of cultural industries. This article will summarize and interpret eight highlights of the Film Industry Promotion Law with close relation to practitioners of the film industry from a practical point of view.