China slows Hollywood investments as film industry takes a new turn
2017-04-30 10:05 GMT+810073km to Beijing
EditorZhao Hong
By CGTN's May Lee
For the past few years, Chinese investors have been pouring money into Hollywood.
They have been funding movies, partnering with production companies and buying out entire firms. But lately, we are hearing about deals between China and Hollywood falling apart.
Dalian Wanda led the way in the buying spree in Hollywood. In 2012, it bought the AMC movie theater chain for 2.6 billion US dollars.
An AMC movie theater in West Chester, Ohio, US. /VCG Photo
Then, in early 2016, it was Legendary Entertainment for 3.5 billion US dollars followed by an offer to purchase Dick Clark Productions for a billion dollars, but that deal has come to a screeching halt.
There have been other busts – a head-scratching 350-million-dollar deal between Chinese copper mining company Xinke and Voltage Pictures has been scrapped.
The same goes for a 2-billion-dollar offer by Chinese tech and entertainment company LeEco to buy out LA-based TV maker Vizio.
Meanwhile, a one-billion-dollar film financing deal involving Chinese firms Huahua Media, Shanghai Film Group and Paramount Pictures once presumed off is now reportedly on again.
Some cite recent restrictions by Beijing on capital outflow impacting big foreign investments. But there is another reason, say skeptics, for the string of imploding deals.
"The idea that China and the US could come together and make films jointly makes no sense at all. You have massively different histories, cultures, societies, expectations and above all languages. That means that yoking these two worlds together is not a natural fit in terms of making films," said Stephen Galloway, executive features editor at The Hollywood Reporter.
But prominent media and entertainment attorney Lindsay Conner, who has worked on mega deals between China and Hollywood, said there is no need to panic.
President and producer Jean Su of Broadvision Entertainment, which just released its first independent film, "Grey Lady," believes investors don’t need to spend millions or billions for a quality product. But in time, China may no longer need to invest in foreign entertainment.
That is especially the case since China's indigenous audience dwarfs any other market in the world. In other words, if they need to, they can manage on their own and create the perfect Hollywood ending.