China eases restrictions on US movies

Edited and translated by People's Daily Online

In order to resolve an outstanding WTO trade dispute, China signed an agreement with the United States on Feb. 18 to exempt an additional 14 U.S. premium-format films, shot in 3D or using the big-screen IMAX format, from its existing annual film import quota.

The agreement also increases U.S. studios' permitted share of box-office receipts from films distributed in China from 13 percent to 25 percent.

The agreement is welcomed by Chinese industry insiders, as they believe it will increase the overall level of domestic film industry, and promote resources integration within the industry.

"The expanded film import quota shows China's openness and self-confidence, and will do more good than harm to domestic film industry," said Gao Jun, deputy general manager of Chinese theater operator New Film Association.

Film critic and screenwriter Zhang Xiaobei said that there is no construction without destruction. Allowing more foreign films to enter the Chinese market will be a positive stimulus to the Chinese film industry. The market will effectively eliminate crappy domestic films, forcing domestic filmmakers to pay more attention to ensuring the quality of films than to launching large-scale advertising campaigns.

Industry insiders said that most of the 14 films will be 3D and IMAX films, which will promote the technological upgrading of Chinese movie theaters. Furthermore, Hollywood film studio Dreamworks Animation plans to set up a joint venture with three Chinese companies in the Chinese mainland, which are certain to benefit much from the cooperation project.

Chinese audience is the biggest beneficiary of the film quota adjustment, as they will be able to watch more high-quality films.

Yin Hong, a professor at Tsinghua University's School of Journalism and Communication, said that facing the challenge brought about by foreign films, major domestic film companies should accelerate brand building, and actively promote industry standardization. At the same time, small and medium-sized enterprises should focus on specialization, and make practical efforts to improve the quality of their films. If they only rely on heavy investment and stars, it will be increasingly difficult for their films to attract domestic audience.