China Will Need to Rely on Intermediaries to Succeed in Hollywood

Chinese investors, including government-controlled firms, have focused on the US film industry, with the hope of studying the art of making Hollywood blockbusters: “US studios have the know-how but are cash-strapped and risk averse, while the Chinese have abundant capital and an appetite for risk, which lends itself to financing films,” writes Henny Sender for Financial Times. China encourages such partnerships by restricting the number of foreign films shown on its screens and the percentage of box-office revenues, she reports. China is the second largest market for films, expected to lead in just five years. Investment firms are emerging on both sides of the Pacific to encourage new partnerships. Sender suggests that success could depend acceptance of intermediaries, co-investors and advice – not to mention creative stories not crimped by censorship. – YaleGlobal