What is Hollywood’s plan for China?

Legendary Entertainment (of Hangover, Inception fame) has partnered with a Chinese studio, Huayi, to create a $220m venture that will help increase the number of foreign movies released in China. It will also remove the limit on foreign box office takings, by countering import restrictions. Hollywood has been keen to increase the market for its movies in China, which brings in about $1.5bn (compared to $10bn of the US) in revenues and where its movies get 17% of the market. “Chollywood” is seeing immense Hollywood activity, with Walt Disney, Sony Columbia, etc. remaking several of its movies and China-based DMG financing a Bruce Willis movie. With China adding 1400 screens a year, and upto 40 IMAX screens, China is definitely building the infrastructure to support Hollywood growth. The fact that the co-produced movies need to have at least one Chinese actor and a sequence shot in China – and deal with tough censorship – does not seem to be deterring the studios, especially its global distributor, Warner.