China To Revise TV Production Investment Rules
The Chinese government will allow non-Chinese companies
to take minority stakes in Chinese companies which produce
for television entertainment. The change allows major
media companies including Disney, Viacom and News Corp.
to invest in China's growing television market.
The changes were announced by the State Administration
of Radio, Film and Television, the government agency which
controls the industry. The changes will take effect on
November 28. Media content continues to be a tightly-regulated
area in China, and has been a barrier to non-Chinese investors
seeking to enter the market.
In the past few years, the grip of the Chinese government
on media has gradually loosened. Content is still largely
produced in China, mainly because of the large market
size and lower production costs. Now, there are many local
production companies from Hong Kong, Taiwan and other
areas working in China.
Western media companies have been seeking an opportunity
to access the market, and the new regulations let them
get their foot in the door. Some have already formed partnerships
or joint ventures with local state-owned
enterprises.
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