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Foreign gold rush to Chinese silver screen
( 2002-01-28 11:59 ) (1 )

Foreign investors can now take a front row seat in the Chinese silver screen industry, with at least 20 joint-stock cinemas expected to open this year, according to a senior official with the Ministry of Culture.

Under a new regulation drafted by the ministry, joint-stock cinemas -- with at least 10 million yuan (US$1.2 million) as registered capital, and foreign investment not exceeding 49 per cent -- will enjoy the same rights and duties as China's State-owned film venues.

However, the new establishments cannot be named after overseas media or cinemas, and are prohibited from showing smuggled and pirated movies or videotapes, VCDs and DVDs to the public.

Zhang Xinjian, vice-director of the ministry's Department of Cultural Market's Administration, said the ministry has received many inquiries from interested parties, and at least five applicants for approval.

"There are many other detailed rules that joint-stock cinemas should follow before a green light is given," Zhang said.

China amended its regulation on the movie industry late last year, allowing foreign investors to participate in building and reconstructing cinemas by establishing joint-stock enterprises with Chinese partners.

Experts say China's entry into the World Trade Organization is both a challenge and an opportunity for the country's film, radio and television sector.

Also starting from this year, China will import up to 20 movies from other countries, whose profits are to be divided between producers and cinemas.

There is no restriction on which countries the movies are imported. However, one country cannot exceed half of the total import.

Many industry experts predict foreign influence will damage the already fragile domestic film-making industry, while a minority hold an optimistic attitude.

They claim it will bring new ideas of film-making and more advanced technologies at lower prices to improve film-making facilities.

Also, they add, cinemas and film distributors will have their profits increased and the masses will be able to enjoy new movies as early as audiences around the world.