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Subscribe to RSSBEIJING – As China continues to flex its economic muscles, there are rumblings that it could begin to encroach on an all-American commodity: the Hollywood blockbuster.
China’s ability to exert control over major industries has raised alarm bells recently. China allegedly banned the export of rare earth minerals to Japan over a recent diplomatic spate, raising fears in Washington that their dominance of the industry could affect America’s ability to build computers and weapons. And a group of state-back Chinese companies’ effort to take over a major fertilizer producer, which could affect world food supplies, has also gotten American lawmakers talking.
Wang Zhao/AFP/Getty Images
A couple walks pass a poster for the Hollywood disaster movie "2012" at a theater in Beijing in Dec. 2009.
Could American movies be next?
Raymond Zhou, an editorialist for China Daily, China’s English language newspaper, predicted in an August editorial that it may be sooner rather than later that China’s movie box office sales surpass those of the U.S. He also suggested that it’s conceivable we may see a major Hollywood studio owned and controlled by Chinese investors soon.
It is easy to see why the always image-conscious Chinese government would support a Chinese company taking over a U.S. studio. China has long admired the power of Hollywood to project American soft power and shape international perceptions of the United States.
A major Hollywood studio could help China burnish its standing internationally and combat what it views as the West’s framing of the global dialogue with Western principles and morals.
Growing numbers
In fact, many believe that China holds the keys to Hollywood’s long term prosperity. A quick glance at the numbers explains why.
In 2009, the U.S. recorded $10 billion in total receipts and China reported $900 million. China’s sales are still modest when stacked against those of the U.S., but compared to just a few years ago, they’ve grown considerably. In 2004, China’s sales represented just about $200 million.
That’s a big jump – especially considering that China currently only has an estimated 5,000 screens for its population of over 1.3 billion. Compare that to the 40,000 screens for the U.S. population of 300 million.
The Chinese government has done its part to grow movie audiences in China by heavily investing in its domestic television and media industries.
They have promoted the local film industry through easy loans and the rapid expansion of movie theaters throughout China’s cities. Reportedly two new movie theaters open up in China every day, with an estimated 35,000 theaters planned to open in the next five years. The Chinese government has also stepping up its effort to combat widespread film piracy – at least for domestically made movies. The government announced last week that they will begin charging Internet cafes, long-distance buses and other distributors for showing Chinese movies, beginning next year.
Seeing ticket stubs beyond U.S. shores
China and other foreign markets are already increasingly responsible for a larger part of a movie’s profit pie – foreign tickets add up to nearly 68 percent of all box office sales. Knowing that, it should come as no surprise that Hollywood studios are increasingly commissioning films that cater to a more international audience and have potential to score high box office sales abroad.
This summer’s “The Karate Kid,” starring Jaden Smith and Jackie Chan might be the best example of a film that was clearly made to entertain audiences of different nationality – and it worked. International ticket sales actually surpassed U.S. sales. The film grossed $176 million domestically – but grossed $181 in international ticket sales, according to data on Boxofficemojo.com.
And product placement in movies has increasingly shown Chinese sensibilities. In “Iron Man II” actress Scarlett Johansson was clothed head to toe in a popular Chinese clothing brand in one scene. The man responsible for that costume selection, Ben Ji of Angel Wings Entertainment, dreams that one day a James Bond film will feature a Chinese made car.
A Chinese studio in Hollywood?
With China growing as a bigger stakeholder in the moviemaking industry, men like Zhou have speculated that it is an eventuality that China will one day own or invest in a Hollywood studio.
But given the current anti-Chinese business mood in the west, it would seem unlikely that such a sale would happen in the near future and not without significant blowback from major Hollywood players.
However, such a sale would not be unprecedented. The 1989 sale of Columbia Pictures for $3.4 billion to Sony shows that American businesses are willing to entertain foreign offers for traditional Hollywood institutions.
We’ll have to see how this story ends…
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I have to give credit to the author of this piece, as most, including myself, would not even think of this subject as an important one. The influence of the entertainment industry on the American people is well known and the platform for advertisement of products in this method is an emerging one. I believe China will eventually wander into this American industry as well but I believe that China wll not flex it's ideaoligy in this forum.
China will not only flex it's idealogy it will move in and eventually capitalize in every way possible. However, shouldn't we be much more concerned about China banning the export of minerals to Japan affecting our activity to build computers and weapons? How about a group of state-backed Chinese companies stopping a major fertilizer producer which could affect world food supplies??? I should think Washington (Obama) who has put us in bed with China should be VERY concerned over these issues AND now Obama wants to sell GM to China??? Why not just hand over the U.S. of A. to them. OH! I forgot.....it's better to sell it off little by little!!!
Richard Nixon started it.
Amazingone, I know you are ranting, but don't just throw Obama's name in your rant because everyone else does. Cite your info with links...
US also has rich resource of this mineral (just like oil) as well, not only China, but we buy it from others, like China, but not explore our own, yet, we're pointing fingers? Why are we blaming other people for our own problems? Bush Sr., Clinton, Bush Jr., Obama, they'are all the same!
"don't just throw Obama's name in your rant because everyone else does"
What's the world coming to? I blame Bush.
China and India have already taken a large chunk of the visual effects market away from North America. I would have said Hollywood, but Canada has already taken a large chunk out of the Hollywood production and post-production markets - now Vancouver feels the bite of runaway productions and post being done for far, far cheaper. We are seeing projects for visual effects go to China at 1/5 the N. American cost.
Having said that, there is some cultural blowback happening already in the form of worker performance. There is a visual effects company in a Canadian city owned by a Bollywood India corporation with offices in both countries. Artists I have personally spoken to say that the quality of work that comes back is excellent if it is rote, worker bee kind of work. This person believes after interacting with them that culturally, the caste system history in India keeps many from openly expressing their creativity in an industry that critically relies on that creativity, so certain shots already are being deemed not appropriate for India.
When we say China, lets not confuse it with anything else but the Chinese Gov't. That gov't is a very RICH govt and has the purse strings over pretty much everything in China , so if they want to buy a Hollywood studio, major sports team(s), major U.S. car maker, as much land as they want, etc. I can assure they will get it because we in the U.S. have unfortunately lost our sense of patriotism in exchange for money. I don't doubt the Chinese gov't would block the purchase of a mine, shipping company, etc. by a U.S. gov't backed company. The chinese believe that what is in China belongs to them, we should do the same in the U.S.... what better example than U.S. flags with the stickers: Made in China??
Lets bring back the slogan: Made in U.S. and we will stop the takeover by the Chinese Gov't.... Wallmart, Target, etc. should change their names to Chinamart and Chinaget..... lets not be suprised when we see China Motors instead of General Motors or Huanhu Stadium instead of Dogder Stadium or Zhinjai Building instead of Empire State Bldg.
Please stop buying Chinese made goods.!!!!!
the chinese did not INVENT CAPITALISM but they will CAPITALIZE using WHAT WE INVENT.
I'm not terribly concerned. The market is global and to pretend that it isn't is ineffective. The key is for American businesses, Hollywood included, and the American consumer to look at collaboration as opposed to competition. The rest of the world is actually taking this approach and they are not paralyzed by a sense of fear. They are efficiently collaborating and actually producing stuff cheaper that others, even American's who are hell bent on competing, will buy. Creating some type of isolationist policy to protect Hollywood assets from the Chinese would only create more competition. Yet, no one else is playing the game and we, as a collective national business entity will lose. I have no doubt that China would enter into a multitude of collaborative efforts with Bollywood and they would flood the international market. Don't think the international market is important? Think again. Hollywood movies, for the most part, lose money in their domestic release. Its expected and part of the Hollywood exhibition and distribution formula. Distributors, like Warner Brothers and production companies, like Spyglass make their money by licensing their films to international distributors, and by ancillary markets (DVD, Pay-per-view), etc. The American brand and the American superstar sell overseas. None the less, India and China have figured out the formula and are making mainstream films that will not only appeal to overseas markets, but, will appeal to the American viewing public. There is no other option. Competition is old news and no one but us is interested. Collaborate, make great movies and everyone wins.
If China puts Liu Wen and Zyi Zhang in the same movie, we're doomed! Liu Wen is the most beautiful actress - and she has the nicest, sweetest personality - in the entire world. It's just a matter of time.
Like many great societies, we have set idley by while Rome burned. The ceo's of our major corporations have shipped our jobs over seas to increase the profits for their shareholders. That is why the ceo's make 100 mil and more a year. They have done what they were paid to do. They have taken from the poor and given to the wealthy once again. The only things the poor can afford are products made in China, while the wealthy keep on keeping on.
Revolution is coming, it is the only way to change the political climate we have. There isn't a nickles worth of difference between the elephants and the jackasses. Neither wants to work with the other leaving the average person with no hope. As Dylan said many years ago, the times they are a changin'. Revolution is in the air.
Bull Crap they are mad because so many people are Boycotting them over the cruetly of there animals, You would know nothing about this for your not on a site I'm. When you go to Walmart, Sear, Pennys The nice fuzzy slippers you put on are rabbitt they do not even bother to care if there dead or not skin them alive. The fur on the coats its dog or cat hair they too skin them alive and eat them so enjoy your meal. This place is 40million strong and yes we Boycott them and have for many years. I have and will. and Japan and Korea no big deal the same to them. Boycott all of them stop the stinking embargo and big the jobs back here in the UsA where they belong in the first place. Do I blame Obama for our Countrys mess your darn right I do!!! He's done nothing that he said he would do only the oppsite. Got a dog a nice popular one when it should have been adopted from a shelter one could have been saved. Flying all over the Country to vacation, Oh I for got the dog!!! Please fly him here on a privite jet to us and they did. What a waste of a President. They are right about one thing He is only a One term President. WOW!!! what a messed you all made by putting him in there for I sure as to heck didn't do it. And I won't be putting the next on in either for they all lie, and power hungry. its all about me me me in there I Boycott the heck out of them. Why do we have to vote for who they tell us too. Thats wrong thats is not Freedom its communiumism. So think about it.