Running head: CHINESE FILM INDUSTRY

How has China's economic development made the film industry successful since 1978 and how they

influence each other?

[Name of the Writer]

[Name of the Institution]

[Date]
 CHINESE FILM INDUSTRY 2

Table of Contents

2.1 Introduction......................................................................................................................................3

2.2 The Impact of the Film Industry on China's Economy and Development...................................3

2.3 The Impact of the Chinese Economy on the Film Industry..........................................................5

2.4 Summary..........................................................................................................................................7

3. Conclusion..........................................................................................................................................8

3.1 Summary of Positive or Negative.................................................................................................8

3.2 Trend of the Film Industry and the Trend of China's Economic Development...........................8

3.3 Chinese Film Industry, Bollywood and Hollywood.....................................................................9

 CHINESE FILM INDUSTRY 3

How has China's economic development made the film industry successful since 1978 and how they

influence each other?

2.1 Introduction

Since China opened in 1978, the country has undergone constant changes in all areas of the

economy, as has the modernization and transformation of virtually all companies that the

administration has recently owned. Even though the main drivers of the economy were the

companies that developed the purchase products, other support companies are in bad shape, and the

best business model is probably the cinema. In just 30 years, the industry grown from an almost non-

existent point to the world's second-best commercial (Yu et al., 2011). In December 2015, the China

legislature published a report on the protectionist dimensions of Chinese film. The leading cause of

concern was evidently that in February of that year, and only because another nation, China, had a

higher film industry than Hollywood since the cinema founded. Be that as it may, there is an

excellent example of non-compliance by the World Trade Organization and an unpredictable

example of powers that have determined the fate of a market that is supposed to defeat China in just

two years (Zhang, 2012).

The rise of China in the 21st-century monetary history and the media are not a particular

case. The film presented in China in 1896. The cinema is seen as part of China's modernization

process. Given the global impact of the economy, the rise of "social enterprise" in China is seen as

the next step on the road to a country. Creator of a politically influential nation. Before the

transformation in 1949, China had a vibrant film industry (Gao, 2012). In Shanghai, the city known

as Hollywood in China, some studios performed comedies, feelings, and melodramas almost every

week, which was extremely conventional among national viewers. However, during the Cultural

Revolution, the decision of the Chinese Communist Party under Mao Zedong nearly decimated

Chinese film. Shortly after the Cultural Revolution, cinema blossomed again as a well-known

distraction mechanism (Kokas, 2011).

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2.2 The Impact of the Film Industry on China's Economy and Development 

The size of the Chinese film industry consists of three sections: film usage, film and theatre

companies and film distribution. Regarding the use of the film, the Chinese movie. The industry

continued to increase, with consolidated sales of RMB 66 billion in 2014. Lately, revenue from the

non-cinematographic industry, copyright, and advertising for films (cinemas, television, and the

Internet) has grown rapidly. It has been instrumental in further expanding film usage in China.

Regarding gourmet adventures, it is necessary to be interested in new places of balance, and a serious

model replaces the broad activity model. Also, in connection with the flooding of theatres and the

significant spending in the first level urban communities, the coherent adventure in the second, third

and fourth level urban areas will be rewarded with better returns (Goldman, 2015). Due to social

contrasts between China and other countries, legal considerations and other factors, only a smooth

development is healthy for the film trade, which hardly has any effect on the overall activity.

According to Deloitte's indicator, the Chinese film industry will continue to develop until 2020 and

generate sales of RMB 200 billion. At that point, China will overtake North China in terms of the

film industry and viewer revenue and become the most significant film commercial in the world

(Richeri, 2016).

The terrible news is that the Chinese economy is growing at a possibly slower annual rate of

7.7% a year (Pitak and Rakshit, 2011). China's legitimate financial metrics as a benchmark for

experimental accuracy (few), obviously no problems getting to China, no hasty end to the long

development period, including suggestions (some terrible, others excellent) Worldwide. However,

there is an argument that I have examined in a BBC2 film in the past few months (which is finished

and will be released soon) that the most critical current sources of Chinese development are

impractical and the more extended event takes. At this rate, the inevitable punishment will be even

more terrible and harmful. While the main shortcomings of the Chinese economy worsened in 2008,
 CHINESE FILM INDUSTRY 5

a financial miracle, which was a Western miracle, hindered development and demand everywhere

(Chu, 2010). In particular, it undermined China's tariff-based economic model. Until Europe and

China permanently lost everything to China, we never had to buy all those dazzling and

straightforward things that were made in China again. Hence, the Chinese economy stagnated,

causing terrible demand in other ways. A courageous Chinese government may have accepted the

open the door to participate in the kind of "revolution of interest" that he and the world needed: to be

precise, going through significant changes that would have made their 1.3 billion possible devour by

locals and spend a lot more (Vlassis, 2016).

The Chu does not believe that an economy can be withdrawn from this dependency on bond-

driven developments without stunning the economy. Regardless of whether you thought it was too

critical in general, you would need the pace of lending and speculation to not grow faster than the

economy, arguing the more they get, the faster and the economy is, the higher the risk that the

liability problems and the profits of the lousy companies will eventually become enormous. In other

words, the more China experiences an inappropriate form of rapid development, the higher the risk

that an inevitable accident will affect China and cause disease in the associated financial institutions

and economies (Cai et al., 2013). This brings us back to the vast and terrible GDP numbers that are

being distributed today. They show that the fixed resource business (excluding rustic family units)

grew 19.6% a year ago, slightly less than 20.6% the previous year. Anyway, and these problems, the

business grew significantly faster than the retail offer (13.6% more) and modern creation (9.7%

more) (Su, 2014). In other words, China remains trapped in a bond-fuelled business. There is no right

balance. The administration has currently announced a 10-year plan in the current plenary to

gradually increase the share of development use and to move away from development and

speculation. Also, after Beijing, it became clear that the growth of direct bank loans with the support

of suitable loan models may have been faster than expected. The banks indicated the kind of

imagination that would have rewarded growth the city's speculative agent or Wall Street would
 CHINESE FILM INDUSTRY 6

increase happily (Stringer, 2013). There was an explosion of lending by "parallel banks" that

appeared to be independent of the financial framework. However, a significant part of the risk at the

banks was still sustainable. The result was that since 2008 the loan has grown at an almost

impracticable annual rate of 15% of the yearly national salary. The aim is that all current

commitments currently represent double GDP and that all responsibilities of the financial framework

will explode to $. 15 billion more in that period (Yecies, Shim and Goldsmith, 2011). As Fitch's final

valuation organization Charlene Chu says, the surge in Chinese bank paper since the 2008 crash is

merely comparable to the overall size of China commercial banks. In China, whose currency

registers have been developed for over a century (Chien, Hong and Guo, 2017).

China accounted for 66.4% of the global film industry in 2015, including 49% confirmations,

70% of the total several screens and 38% of all films (Ibbi, 2014). Some other ideas represent a

general irregularity on the world market, especially in the connections between the named districts.

China, where the movie showcase has recently emerged from nowhere, is a much better choice for

the China film industry than for Europe (Shaw and Zhang, 2018). It became the second-largest

movie showcase in the world, and many indicators predict that it may soon overwhelm China's top

spot. So China can provide some answers to the China film industry's desire to continue to develop,

but infiltrating this ad, as we'll see, appears to be an extreme task for the time being (Dou et al.,

2016).
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Figure: Shows the Foreign Films’ Box Office Share in China (2009–2015)

2.3 The Impact of the Chinese Economy on the Film Industry 

Movie mailing revenue has been essential to the money records of large Hollywood

organizations for some time. Income from the family business alone could not support the

construction costs, which were in an almost sustained upward trend. Also, support for film

submission and large-scale media content was ultimately the backbone of the Chinese government's

international strategy, especially after World War II. During the Cold War, the primary thought

process was political. In any case, recent monetary considerations have prompted the Chinese

government to support this technique (Zhao et al., 2011). Of course, films and TV content not only

promote China's lifestyle around the world and do essential work in merging China's sensitive forces,

but they have also become increasingly crucial for the exchange of foreign nations. The party's

deliveries reached 16.3 billion from China, compared to 3.2 billion for Chinese imports. The net

result is a currency loss of more than 3.1 billion from China or 6% of all foreign exchange

administrations in the Chinese private sector (Huiqun, 2010). The industry delivered what it

imported several times. The company has a trade surplus that is larger than any of the excesses in the

parts of the administration related to advertising, mining, media communications, legitimacy, data

and welfare. Also, recent problems have limited the Chinese film industry not only to maintain but
 CHINESE FILM INDUSTRY 8

also to increase the global share of the entire conquered sector and to find new markets that offer

substantial new revenue with promising development prospects (Zheng, 2016). The issue is strong

signs of stagnation in the presentation of home films, some of which are the result of repetitive

diversity and accidental changes. Somewhere in the 2010-2015 range, the demand for cinema rose

from 1.43 to 1.24 billion tickets sold (-1.5%), the annual confirmations per capita rose from 5.2 to

4.5 (–7.3% ), and the early development of the film industry was low in iron, compared to 10.6 for

China versus 11.1 billion for China (+ 4.7% in 6 years) (Yecies, 2016).

In current advertising in China, cinema revenue typically accounts for 25 to 40% of a film's

gross income. So why insist on what happens to films? As the film's finance specialists know, the

problem is this: Cinemas are a fundamental advance in embezzling a movie because it decides to

enter a film in the first few weeks' worth the price of the film at that time in various windows video

on demand on DVD and pay-TV on free television (Udden, 2011). Also, the movie of the fourteen

main days quickly generates revenue, a large part of which is usually saved by the creative

organization. The importance of filming a film in cinemas is also evident from a precise

measurement. In essence, the vast majority of interest in advertising and sales promotion focuses on

the release of the film in films and the next half month. This means a lot of dollars for Hollywood

creations (Xie, 2012). The extraordinary efforts to advance a film in this phase significantly increase

its visibility, support the masses and have an ideal impact on the world of cinema and subsequent

abuse windows (e.g. free and pay-TV, VOD and DVD) (Ma, 2016).

Current patterns of film usage around the world indicate that the Chinese film industry may

face issues and its dominance in the mall may be threatened. Any consequence would influence not

only the Chinese economy, but also its political and social impact everywhere (delicate force). So

far, the work of cinemas in the film industry has been criticized as the assertiveness and revenue of

the film industry have reached a film in the first and second long periods. The presentation that

characterizes its highly valued value in each rear window (E.g. DVD, Pay TV, VoD, radio). As a
 CHINESE FILM INDUSTRY 9

result, it becomes essential for Hollywood to protect and expand the field developed abroad,

especially in the area of cinema advertising (Xin and Mossig, 2017). In general, Europe has been the

preferred field of persecution for Chinese cinema. However, history shows that individual nations

(such as France and Italy) have had difficulties from time to time to resist the incredible nearness to

oceanic films. Incidentally, Chinese cinema has recently taken over an extremely remarkable piece

of the global industry. As we will see, the opportunities in the European market are not great, and

Chinese film will struggle to make progress there. Also, the EU and its various contracting states

have made a political commitment to prevent such growth over a more extended period (Yang,

2016).

2.4 Summary

These summarizing figures show how the window of Chinese films in a positive currency

cycle has recently moved away from stagnation or even recession. Note that reference is made to this

period. The film industry was the primary variable with an upward trend, but a modest trend: a 6.8%

increase in average ticket costs that offset the decline in absolute claims (Zhu and Nakajima, 2010).

However, increasing ticket costs to compensate for the decrease in the volume of all tickets sold is a

limited method. Sooner or later, this pattern will surrender to constant losses; that means an increase

in ticket costs reduces participation. It should also be noted at the top of the list of priorities that the

waning trend in the event of damage is not an incident, but rather the effects of a change in aid,

which is due in particular to new spending laws for various media content (Rawnsley and Rawnsley,

2011). The expansion of access to multiple online multimedia content on-demand from home, the

improvement in quality and the updating of broadcasting systems (broadband) are mainly factors that

are threatening the transformation of the system declining current stagnation. Moderate, but

obviously when visiting the film, also in China and elsewhere. Currently, this is an important
 CHINESE FILM INDUSTRY 10

measure that involves the input of video instruments that (and other) content is filmed from home on

the Internet (Yang and Yecies, 2016).

For a while, the large film organizations overwhelm the locals and Los. Universal Markets

have one equipped creation model introduced to strengthen their position on the national market and

especially abroad. They focus on large corporations creating, appropriating, and promoting some

selected (and becoming more and more expensive) films that are considered market leaders wherever

they can compete wholeheartedly, also known as blockbusters according to the China’s Economic

and Security Review Commission (‘Silencing cinema: film censorship around the world’, 2013).

USA and China in 2013, the standard overproduction company was 200 million from China, except

50 million from China, which was re-issued. However, in 1996 usual speculation of 60 million from

China and 23 million from China separated (LIAO et al., 2010). The explanation for the continuous

increase in financial limits for blockbuster films has just been investigated. There is no compelling

reason to return to them here. In any case, there are two essential approaches. First, blockbusters

must do well globally to be a monetary success, since the domestic market alone cannot do business.

Second, the cost of creating and advertising in the media, film industry and entertainment, in general,

is increasing, and the hugely successful model has accelerated this risky development. It has reached

a level that two nations can maintain; So far, only China has tried. China has a substantial residential

film market and has encountered obstacles to the area's restricted access to external films. China is

also trying to take on a remarkable job in the global film industry (Rawnsley and Rawnsley, 2011).

3. Conclusion

3.1 Summary of Positive or Negative

The Chinese film industry could just end up as a mechanical part. With the blocking of

Google, Facebook, Twitter and Instagram in China, whether for protectionist or political reasons,

local companies like Alibaba or Tencent are successful. Video streaming phases like iQiyi use their
 CHINESE FILM INDUSTRY 11

online customers and bring films and TV shows to a variety of devices. With the financial help of

technology giants like Alibaba, which can be compared to eBay, and the ultimate legal control of

online theft, Chinese video destinations are expected to start at a random time. An important factor

contributing to the increase in internet pollution is how China has become an incredible source of

fascination for technology companies (Yin et al., 2011). The progress of the web has made China

one of the most associated countries. It is estimated that more than 650 million people use the

Internet in China and countries with technical knowledge on the planet. This goes hand in hand with

an expansion of the use of video content. In February 2016, Chinese audiences beat the film industry

world record week by week by buying tickets for $ 557 million. In this way, it is clear that China, as

the world's most populous country, will build a thriving film industry that can reflect its conventions,

legends, and qualities (Du, Lü and He, 2013).

3.2 Trend of the Film Industry and the Trend of China's Economic Development

The Chinese film production sector should create $ 8.2 billion in 2019. Sales should reach

14.3% on an annual basis for five years to 2019. The rapid increase in usage Intensity and lack of

social and entertainment elements have driven business development. The national expansion of

feature films for the Chinese market has developed from 830 films in 2014 to 1,182 in 2019 (Mac

Donald, 2016). Chinese films have become known and makeup around 66% of all cinema tickets

sold in China. This development is due to the improved nature of home movies, which highlight

remarkable Chinese characters and frames on the screen.

3.3 Chinese Film Industry, Bollywood and Hollywood

After China has long influenced the Asian market through its various film types, it has

become incredibly convincing in Hollywood. China currently has the second-largest film industry in

the world. By 2026, it will own 40% of half of the global film industry (Deleonibus, 2011). So it's no
 CHINESE FILM INDUSTRY 12

big surprise that Hollywood is addressing crowds and Chinese editions. China relies on Hollywood

to strengthen its diversionary property and make innovative joint efforts. As China continues to

urbanize and the number of shopping centres grows, and people's wages rise, the film market will

develop rapidly over the next ten years. Bollywood and the Chinese film industry were distracted

from the west instead of the east. In 2013, India and China decided to strengthen mutual participation

in cinema and broadcasting. China was the first guest nation at the International Indian Film Festival,

which took place in Goa in November 2017. In a 2014 agreement, India and China intended to

improve the Indian film market in China and vice versa. Delhi and Beijing have announced three

films to be created together to prepare for more social trade. The idea is to weaken the Chinese

clichés in Indian cinema. The Chinese movie Lost in India is supported by the Chinese travel

industry in India only because it expanded the travel industry from China to Thailand after the

release of Lost in Thailand (Du, Lü and He, 2013).

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