US achieves breakthrough on film-related dispute with China

US Vice President Joe Biden today said that China has agreed to significantly increase market access for American movies in order to resolve related outstanding issues.

“China and the United States today reached agreement on the terms of a Memorandum of Understanding resolving the WTO film-related issues.

“Both sides applaud the efforts made to resolve their differences with respect to these important issues,” said a joint statement issued by the US and China.

“This agreement with China will make it easier than ever before for US studios and independent filmmakers to reach the fast-growing Chinese audience, supporting thousands of American jobs in and around the film industry,” said Biden, who spent yesterday in Los Angeles with the visiting Chinese Vice President Xi Jinping.

“At the same time, Chinese audiences will have access to more of the finest films made anywhere in the world,” he said.

“US studios and independent filmmakers cite China as one of their most important world markets, but barriers imposed by China and challenged by the United States in the WTO have artificially reduced the revenue US film producers received from their movies in the Chinese market,” US Trade Representative Ron Kirk said.

“This agreement will help to change that, boosting one of America”s strongest export sectors in one of our largest export markets,” he said.

The Chinese film market is large and growing quickly.

Last year, Chinese box office revenue was up to USD 2.1 billion.

Much of this revenue came from 3D titles, which is a rapidly growing sector of the film industry, the White House said.

The agreement allows more American exports to China of 3D, IMAX, and similar enhanced format movies on favourable commercial terms, strengthens the opportunities to distribute films through private enterprises rather than the state film monopoly, and ensures fairer compensation levels for US blockbuster films distributed by Chinese state-owned enterprises.