The year 2016 was definitely the peak of China and Hollywood relationship. However, in a matter of 12 months, the relationship soured as Chinese regulations resulted in two major deals not pushing through.
“The Great Wall” Crumbles
Add to that the fear in the mind of American legislators over China having a larger say in content of Hollywood movies. But the fear appears to be unfounded because while producers have been hiring more Chinese actors in their movies to draw in the Chinese moviegoers, a co-production between Universal Pictures and China Film Group, “The Great Wall,” backfired.
The film combined the drawing power of Hollywood actor Matt Damon and elements of Chinese culture but bombed at the U.S., resulting in projected losses of about $75 million, Epoch Times reported. The daily cited Stephen Galloway, executive editor of the Hollywood Reporter, that it was a mistake on the part of Hollywood to court China.
Diametrically Opposed Interests
Galloway explained that China’s interests are diametrically opposed to Hollywood’s interests. He cited as an example the newly approved Film Industry Promotion Law in China, which went into effect on March 1 that prohibited content in local movies and American-Chinese co-productions if the content would harm the dignity, honor and interests of China. The law also mandated the stars and crew of the movies to promote the socialist core values of the communist nation.
The backlash on Hollywood actors who breach China’s rules – such as Richard Gere who befriended the Dalai Lama, Brad Pitt and Harrison Ford – is being blacklisted in the second-largest movie market in the world.
However, China Law blog was not surprised with the two major deals falling through recently. It pointed to the Chinese yuan being a regulated currency as the reason why it is very challenging for Chinese companies now to bring out money overseas for purchase of entertainment assets.