Win/win collaboration
The world has witnessed anenormous progression in the Chinese film industry; its total box office Attained 4.3 billion Yuan (628.9 million U.S. dollars) in 2008, up 25 percent from a year earlier, according to the State Administration of Radio, Film and Television (SARFT). It is considered now as the third biggest film producer throughout the world.
China controls not only the distribution but also controls the number of foreign movies released allowing only 20 foreign movies to play in its theatres per year and since the "U.S. films have seen their box office fall in China over the past six years, and fewer of them could earn 100 million Yuan in box office returns each," according to Han Sanping, chairman of China Film Group Corporation, the Chinese market is very limited to foreign competition due its protectionist measures.
China Film Group (CFG) is China’s biggest conglomerate film company which controls more than half of all domestic film distribution in China. The CFG owns a small firm in which it holds a 12 percent stake, The two firms are in charge of the 20 foreign movie distribution per year [Source: The Economist July 14, 2011]. These measures reminded me of what we talked about in class about the birth of the MPPC (Motion Picture Patents Company) how only nine companies managed the production, distribution and exhibition of the movies and theaters. Somewhat china is still following this kind of system which decreases the income of all the foreign movies. As a result the us is not making any significant profit from china and has to settle for a co-prodution.
A co-production between china and the U.S will be surely beneficial to the U.S, since co-produced movies are considered in china as domestic movies, therefore there will be no limitation on the number of movies showed. Another way for the U.S to strengthen their international influence and to make profit from the Chinese market is by selling their knowledge, skills, and expertise in both production and marketing fields. Hollywood do not want to miss the opportunity to establish a real partnership with China with their great potential; since China have one of the largest histories in the world which, for instance, can be a great source of ideas and stories for movie scripts.
On the other side, the Chinese will also profit from this collaboration. Production wise, they will learn new technologies, and technics maybe increase their knowledge in special effects, also go more global and compete with the most powerful film industry later on. The Chinese won’t miss a golden opportunity to update their own set of skills and knowledge and to overcome the U.S.
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