U.S. studios expected greater access to the mainland in 2018. Then the trade war erupted
This was supposed to be a big year for Hollywood in China. The five-year World Trade Organization film pact the U.S. and Beijing signed in 2012 was set to be renegotiated, holding out the promise that American studio productions would gain greater access to the world’s second-largest movie market. The industry had expected to see an increase in the number of U.S. films allowed, more access to key viewing windows such as summer, when China’s film authorities rarely allow foreign movies, and a higher share of box-office receipts.
Now it’s looking like Hollywood’s long-awaited payday in China could become collateral damage in the trade war brought on by President Trump’s tariffs. Not only have negotiations about widening access to the market stalled, but some in Hollywood also quietly worry that their films could be targeted in retaliation for tariffs the U.S. has identified for about $250 billion in imports from China. “The timing for this is inopportune,” says Chris Fenton, a trustee of the U.S.-Asia Institute and former president for U.S.-China film company DMG Entertainment. “In fact, the macro environment may be getting worse. It also could lead to the worst-case possibility of China backtracking on past agreements.”
Although it’s uncertain whether movies will end up on the lists of goods the U.S. or China have said might get slapped with new tariffs, the threat to American film exports is clear. Hollywood could be a victim should China choose “qualitative retaliation,” says Kenneth Jarrett, president of the American Chamber of Commerce in Shanghai. That could include a worsening of revenue-sharing terms for film deals. Or China’s film industry regulatory authority, recently shifted to a group within the Communist Party, could simply approve fewer U.S. films for import or limit their runs to low- season periods.
Diese Geschichte stammt aus der July 23, 2018-Ausgabe von Bloomberg Businessweek.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der July 23, 2018-Ausgabe von Bloomberg Businessweek.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers