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Uncertainty in China-Hollywood Entertainment Financing Relationships, But Hope Remains
Uncertainty and the drumbeat of a possible trade war are ominous clouds currently hanging over relations with Chinese investors, several of Hollywood's top deal-making attorneys say.
Companies from the People's Republic have poured more than $10 billion into U.S. film, TV and media interests in an unprecedented deal-making frenzy over the past three years. But that activity ground to a virtual halt this spring as Beijing reined in overseas investment, President Donald Trump continued to rail against the U.S. trade imbalance with China and new deals faced increased scrutiny from the feds.
“There's just so much that we don't know right now,” said Stephen Scharf, co-head of the sports, entertainment and media practice at O'Melveny & Myers, who advised IMAX on the creation of the giant screen titan's IMAX China Film Fund, which will make 10 “tentpole” movies in Mandarin.
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