Universal Studios to Build Theme Park in China

2/16/2009
John Winn
The entertainment industry may be begging the government for a dime, but that isn't stopping Universal Studios from planning another theme park.

According to Daily Variety, the proposed park is awaiting approval from the Chinese government for the $1.5 billion project.

The park, which will also feature a resort and hotel, will be built in partnership with the state owned Capital Tourism group. The proposed project will be in the Beijing suburb of Tongzhou, according to the state-owned Xinhua news agency.

Under the terms of the proposed agreement, the Communist country will own a majority stake in the project. Both Universal Studios and the government will contribute up to $750 million for the project--hence the $1.5 billion price tag.

Yet, Universal Studios is not without its competition. Last month, Disney Corporation announced a $3 billion proposal to build a theme park in Shanghai.

The confirmation by Universal Studios and the Chinese government marks the first significant steps since the idea was floated over a decade ago.

If the deal goes through, it will be a boon to China's ailing economy.

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