CHINA'S BID ON HOLLYWOOD - The Sourcing Blog

Have you ever been watched Chinese movies before? If you compare with Hollywood movies, which industry being one of the most important backbones for US economy, well, we can say China is still ways behind. But, don’t underestimate, their effects etc. are quite cool in term of the fact that they’re not as develop as Hollywood. Currently, one of Chinese tycoons, the owner of Wanda Group, bought a US Hollywood film studio. Find out the details below

Home for “Batman”

Batman Trilogy

Legendary Entertainment is home for many famous movies, let’s say Batman Trilogy, Jurassic World and Godzilla. It was bid for US$3.4billion, as Chinese interests seek to get a larger foothold in Hollywood.

Legendary Entertainment

This deal is stated as “China’s largest cross border cultural acquisition”. Legendary Entertainment is acquired by Wanda Group, whose owner is categorized as one of the richest men in China. Wanda group moves in the real estate or property sector with the title of the biggest private property developer. Beside, it is also titled as the world’s largest cinema chain operator, owning Wanda Cinemas, AMC Entertainment and the Hoyts Group.

Huge Wanda Plaza across our office

The move follows a string of deals that have seen China, the world’s second largest market for films, increasing its influence in the global film industry. Wang Jianlin, chairman of the Wanda Group told the media that American movie companies had the commanding heights of the movie industry in the world. He added that this acquisition of a studio would change this situation.

Wang Jianlin, whose wealth exceeds Hongkong tycoon Li Ka Shing based on Forbes magazine, has been expanding his Wanda empire into the entertainment industry in recent years. In 2013, the conglomerate opened a US$8 billion studio in Qingdao, China’s eastern coastal city, near to South Korea. Leonardo DiCaprio and Nicole Kidman were said to attend the opening ceremony. Wanda was also among one of the co-producers of Southpaw, a movie which stars Jake Gyllenhaal that was released last summer.

Wang JianLin

Wanda’s Qingdao Oriental Movie Metropolis

Kate Beckinsale, Leonardo di Caprio, Nicole Kidman were among of other Hollywood stars attending the opening ceremony

Not only Wanda Group, other Chinese companies have also been taking minority stakes in Hollywood movies. China Film Group reportedly having equity in Fast and Furious 7 and Seventh Son. Alibaba Pictures, which is controlled by China’s second richest man Jack Ma, was an investor in the fifth Mission Impossible film.

Transforming China’s Entertainment Industry

The good news is Wanda’s new partnership with Legendary will allow it to bypass Beijing’s strict movie import laws, which only allow 34 foreign blockbusters each year to be shown in China. When you live in China, the cinemas are flooded with 90% of Chinese movies. You’ll miss a lot of good films from other countries.

China’s strict co-production rules require a significant amount of Chinese content, including shooting locations and language, stoking fears that the new deal could be a means for Beijing to project its “soft power”.