The White House announced that more films made in the US will be shown in China after the two countries finally settled a five-year dispute that limited the major American studios’ access to the world’s second largest economy.
Bloomberg reported that under the new deal, which was reached at the World Trade Organization while Chinese Vice President was finishing his trip to the US, Chine will agree to pull back on restrictions on 3D and IMAX films. Fairer commercial terms for filmmakers were also put in place and the government’s monopoly on film distribution was eased.
Under the previous rules, China only allowed 20 foreign films to be imported a year, but many Hollywood films could get around the hurdle if they were Chinese co-productions. However, under that system, American independent films would have less chance to be distributed in China.
The Motion Picture Association of American and the individual studios it represents quickly issued statements applauding the deal, notes The Hollywood Reporter. The MPAA said that the deal would ensure that studios get a larger share of the profits of their films from the Chinese box office and that at least 50 percent more American films will reach China under the new deal.
According to Deadline, the US claims that the Chinese box office revenue jumped by $2.1 billion last year, mostly thanks to the successes of 3D films. Which is why the US made sure that more of its 3D films could be released in the country to take advantage of the 3D boom.
Robert Iger, CEO and president of the Walt Disney Company, released a statement adding that, “China is one of the most populous countries in the world, and this agreement represents a significant opportunity to provide Chinese audiences increased access to our films."
The Independent Film & Television Alliance also praised the deal, calling it “momentous.” According to Deadline, IFTA president and CEO Jean Prewitt said, “For the first time, through this Agreement, there is a promise of creating a commercial foundation that will allow independent producers to participate more fully in the Chinese marketplace.” Prewitt added, “Most importantly, these changes will accelerate the development of a competitive marketplace in which both the U.S. and the Chinese independent film industries can flourish.”
Bloomberg notes that Vice President Joe Biden credited the deal with supporting “thousands of American jobs in and around the film industry.”
The new agreement comes on the same day that DreamWorks Animation announced that it is opening a studio in Shanghai as part of a joint venture with China Media Capital and Shanghai Media Group.