Love
Currently, China is second only to America itself as the biggest national market for blockbusters. By 2020, analysts expect it to become the single biggest box office in the world, thanks to an ever-increasing population who are earning more and more disposable income.
It’s not only the theatrical revenue that has Hollywood producers increasingly paying attention to the country. Chinese investors and even the government themselves have started part-funding the productions themselves.
It’s part of an effort to bolster China’s own film industry, create films that are more appealing to Chinese audiences and also to ensure Western audiences are introduced to more Chinese personalities and settings - both financial and cultural advantages. China has also begun work on a huge €1 billion production facility near Tianjin to attract more foreign productions to the country.
Two of the most successful recent co-productions have been Looper and Iron Man 3. With the former, producers agreed to set part of the film in China in return for the sizeable investment. The finished product enjoyed a simultaneous release in both markets, even side-stepping China’s unusual discouragement of films about time travel.
Iron Man 3 went even further, adding several extra scenes for the Chinese release, featuring cameo appearances from local superstars such as Fan Bingbing. The film has easily passed $120 million (€90 million) in box-office revenue from China alone.
Several future co-productions are already en route to screens, including a new version of Arabian Nights and animated sequel Kung Fu Panda 3 (a franchise that has been particularly successful in China, helped by its use of Chinese mythology and iconography).
Hate
Although the relationship has continued proving lucrative, it has also come with its fair share of complications.
This week reports filtered through that Hollywood studios haven’t actually received the money from their most recent hits. The American studios receive 25% of the money earned at Chinese cinemas, but down to a dispute over a 2% sales tax Chinese authorities have withheld the Hollywood share since the start of the year. In the case of Iron Man 3 alone, that’s over €20 million in limbo.
It’s testament to Hollywood’s commitment to the Chinese market that they haven’t responded by withdrawing their releases as the Motion Picture Association of America attempts to resolve the dispute. However, there have also been reports that a massive amount of proposed co-productions have fallen through. The Hollywood Reporter has already asked the question “Is Hollywood Fed Up?”.
The aforementioned 25% income is also the result of long & frustrating discussions between the two countries - for years, Hollywood only around half of that amount. There are also strict rules on the amount of foreign productions allowed on Chinese screens every year - the cap only recently raised from 20 to 34 films a year, as long as the extra films are Imax or 3D releases. However, over 40% of overall Chinese box-office revenue is from these releases, despite the rest of the screen space being dedicated for local productions.
Then there’s the other restrictions and censorship. Films are often heavily cut for Chinese release. In a widely reported recent example, Django Unchained - the first Tarantino film approved for release in the country - was pulled literally minutes before its first public screenings for further cuts before its eventual release.
Films that are perceived to portray Chinese society negatively or give voice to oppositional ideologies are frequently banned outright. Despicable Me 2 is one recent film that was denied a mainland China release, although probably simply to make room for more locally produced animation.
Many Chinese audience members have also been critical of some of the attempts to shoehorn in Chinese content. Both Looper and Iron Man 3 received their fair share negative feedback on Chinese social media for their China-set content, while Iron Man director Shane Black admitted neither himself or Robert Downey Jr. were involved in the creation of the extra China content.
And I haven't even mentioned the piracy.
Still, despite all the setbacks and compromises, the co-operative relationship between China and America shows no sign of slowing down as it grows ever more financially (and even culturally) lucrative. Audiences around the world can certainly expect to see more and more Chinese content in Hollywood blockbusters.
