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A crack in China's film wall? - December 21, 2007

Chinese film authorities have agreed to let Sony's year-old Will Smith picture "The Pursuit of Happyness" appear on screens there in January, Daily Variety is reporting, in an apparent attempt to demonstrate that no ban on U.S. films is in place. Just last week, U.S. film officials expressed concerns that American films were being barred from Chinese multiplexes in apparent retaliation for the U.S. action against China in the WTO over intellectual property issues.

"Indications are very strong that if not a formal, then essentially an informal blockade of our product is beginning to take place," MPAA chairman Dan Glickman said in a statement. "If these reports are true, it is unacceptable that China has taken this action, and we will bring all our resources and leverage to bear to address this situation."

Several big-budget U.S. films that were counting on access to China are yet to get the green light, including Disney's "Enchanted," DreamWorks' "Bee Movie," Paramount's "Stardust" and Warner's "Beowulf."

As usual, though, it's not clear what's really going on in China. According to Friday's report in Variety, some U.S. studio execs see the admission of "Pursuit of Happyness" as essentially tactical, rather than a change in policy.

"The Chinese want to show there is actually no ban. By releasing one American film, they can claim this. No other titles are yet confirmed for release," on studio exec told the Hollywood trade (and Content Agenda sister pub). As it is, "The Pursuit of Happyness" was only okayed for digital cinemas in China, which represent only a tiny percentage of Chinese screens.

Sources tell Media Wonk that U.S. Trade Representative Susan Schwab, who happened to be in China when the stories broke here, raised the issue repeatedly with Chinese trade officials, who assured her that no ban was in place.

For its part, the MPAA has stopped talking about the flap. A spokeswoman declined to comment on the admission of "Pursuit of Happyness" or on whether the association is still convinced a ban is in place. Pressed by Media Wonk, the spokeswoman would say only that MPAA stood by Glickman's previous statement but "continues to monitor the situation."
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