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Movies

China to Open Up to Foreign Films with New Reform

Strategic Insights

— 1 min read

The Chinese government is set to give foreign films greater access to the Chinese market with a key reform that will allow foreign film companies to sign contracts based on a share of box office receipts. This move is expected to take the Chinese movie market a step closer to opening up to foreign film distributors. The reform will prioritize high-quality American and European films, giving them preferential consideration for importation and allowing them to use the new distribution system. This change is expected to increase the appeal of Chinese movie theaters, which currently struggle to attract top-quality films due to a lack of funding.

Key Takeaways:

  • The Chinese government will allow foreign film companies to sign contracts based on a share of box office receipts, giving them greater access to the market.
  • Fewer than 10 foreign films have been distributed in China using this new system, which is a significant increase from the current system where films are imported based on prearranged flat-rate payments.
  • The government will give preferential consideration to high-quality American and European films, allowing them to use the new distribution system.
  • The current system of importing films based on cultural agreements has resulted in little interest in foreign movies, with most imports being at least five years old.
  • Under the old system, box office performance was of little importance, resulting in limited revenue for foreign film distributors.
  • The official government movie import and export company is struggling with a lack of foreign currency, making it difficult to afford first-run overseas films.

Statistics:

  • Fewer than 10 foreign films have been distributed in China using the new box office-based system.
  • Most foreign films shown in China are imported under cultural agreements between China and other governments.
  • Under the current system, most imports are at least five years old.
  • None of the top 10 films last year in Shanghai, China's largest city, were imports.
  • The official government movie import and export company is struggling with a lack of foreign currency to afford first-run overseas films.

Sources:

  • "China to allow foreign films to compete with box office receipts," Wen Wei Po (no date mentioned)

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