In addition to doing some “relationship building” with President Obama, Vice President of China Xi Jinping visits the U.S. to commence a new relationship with… Hollywood. DreamWorks Animation, responsible for creating the box-office hits Kung Fu Panda and Shrek, will partner with Shanghai Media Group and China Media Capital to produce Chinese films, television shows and live stage productions in China. This deal serves as a significant stepping stone into the Chinese film industry, which has been rapidly growing, while the U.S film industry declines. DWA hopes to piggyback off the success Kung Fu Panda 2 had in China (which raked in about $100m in 2011) to secure a strong position in Chinese film due to the predicted success of this industry over the next several years.
While professionals predict Chinese Hollywood to be successful in the future, one major consideration to keep in mind is also China’s highly lucrative and expansive counterfeit industry. Notorious for imitating everything from iPad 2s to Louis Vuitton bags, duplicating and distributing physically AND electronically DVDs is a piece of cake compared to the technological and aesthetic intricacies that Apple products and designer bags entail. Although situating DWA in a growing film market could be profitable in the short run, the long run seems relatively bleak as the strength of the internet and duplication technology increases.