By Greg Donaldson
Impunity Watch Reporter, Asia

BEIJING, China – After a week of negotiations, the United States and China came to an agreement Friday that will open the Chinese market to more American movies. In a statement United States Vice President Joe Biden said “this agreement with China will make it easier than ever before for U.S. studios and independent filmmakers to reach the fast-growing Chinese audience, supporting thousands of American jobs in and around the film industry.”

This is just one of the many agreements the United States and China have come to during the visit of future Chinese President Xi Jinping to the United States this week. The agreement does not require China to change its annual quota of twenty foreign films per year but exempts several types of movies from the quota.

For example China will now allow fourteen “premium format films” each year that do not count against the quota. “Premium format films” has been defined as IMAX or 3-D films. Many expect 3D movies that are about to be released such as “Dr. Seuss’ the Lorax,” and “The Amazing Spider-Man,” or 3-D remakes such as “Titanic” will seek to take advantage of the new agreement.

The United States has frequently complained about China’s oppressive restrictions on foreign films. In 2009 the United States won a case against China in the World Organization Trade Court. The case challenged China’s restrictions on importation and distribution of copyrighted materials. The United States claimed that China’s restrictions on foreign films created a massive market for pirated U.S. movies that are widely available throughout China. It is expected that Friday’s agreement will help lower the demand for pirated movies throughout China.

Chris Dodd, president of the Motion Picture Association of America, called the agreement “a major step forward in spurring the growth of U.S. exports to China and tremendous news for the millions of American workers and businesses whose jobs depend on the entertainment industry.”

The agreement will also increase a foreign studio’s permitted share of box office revenue from films released in China to twenty-five percent. Previously, a foreign studio’s percentage of box office revenue ranged from thirteen to seventeen percent.

Chinese director Gao Qunshu said “the agreement would bring more challenges for China’s filmmakers, but in the long term he believed in the power of competition in an open market. With fourteen more foreign films, the market space for local productions will further shrink… More “lame” works will be drive out of the market.”

For more information, please see:

China.org – Chinese Theaters to Screen More US Films – 20 February 2012

China Daily – More U.S. Films Set For China – 20 February 2012

New York Times – In China Movie Pact, More 3-D, Less Reality – 19 February 2012

Chicago Tribune – China Opens Box Office to More U.S. Movies – 18 February 2012