China & Hollywood: The Future of China and U.S. cinema

Key Concepts

• China-US Film Industry Dynamics: The evolving relationship between the Chinese and American film industries, shifting from emulation to independent growth in China.
• Co-Production Challenges: Difficulties and failures of large-scale US-China co-productions in feature films.
• Domestic Content Success in China: The increasing preference of Chinese audiences for domestically produced films, particularly in animation.
• Animation as a Bridge: The relative success of animation, especially in television, as a medium for cross-cultural collaboration.
• Importance of Cultural Sensitivity: The necessity of understanding and respecting Chinese storytelling sensibilities in collaborative projects.
• Growth of the Chinese Box Office: The rapid expansion of the Chinese film market, driven by new audiences in lower-tier cities.
• IP & Co-Production Model: Utilizing existing popular Chinese IP for potential co-production success.
• Face-to-Face Collaboration: The importance of in-person interaction and relationship building in Chinese business culture.

The Evolving Landscape of China-US Film Collaboration

The relationship between the Chinese and American film industries has undergone significant transformation over the past two decades. Josh Celig, a producer and director with extensive experience bridging Western audiences and Chinese entertainment through China Bridge Content, details this evolution. Initially, Chinese animation was nascent, with studios attempting to emulate Western styles. However, this period has passed, and China has established its own distinct industry, particularly in animation. Celig emphasizes that “Chinese films about Chinese people that focus on Chinese culture” are now the most popular, representing “a triumph for their industry” and the result of dedicated learning and hard work.

The Rise of Chinese Animation & Box Office Dominance

The success of films like Njia 2 exemplifies this shift. Njia 2 earned $2 billion in China, becoming the highest-grossing animated film globally. This success isn’t surprising to Celig, who points to earlier milestones like the 2015 Monkey King feature and Njia 1 (2019), which grossed $800 million on a $40 million budget, as indicators of China’s growing capabilities. He notes a concurrent decline in box office performance for Western films in China. Data reveals a dramatic change: in 2012, seven of the top ten highest-grossing films in China were American; by 2023, no American films made the top ten. Hollywood now represents only 5% of China’s box office. Furthermore, in 2023, the Chinese box office grew by 20%, while the US box office grew by only 1.5-2%, remaining below pre-COVID levels. This growth is attributed, in part, to the emergence of a new audience in third and fourth-tier cities, fueled by China’s economic development and poverty alleviation efforts.

Co-Production Failures & the Hybrid Problem

Despite the potential, large-scale US-China co-productions in feature films have largely failed. Celig cites The Wall (featuring Matt Damon), Abominable, and Over the Moon as examples of films that “tanked.” He explains that these films often end up as “uncomfortable hybrids” that don’t resonate with audiences in either country. This has led to a reversion to independent production focused on domestic markets. However, the situation is different in television. Celig’s success with Super Wings, which generated over $1 billion in merchandise sales, demonstrates the potential for co-production in television, where global appeal and dubbability are crucial.

The Importance of Cultural Sensitivity & Collaboration Approach

Celig stresses the importance of approaching collaboration with cultural sensitivity. He emphasizes that a successful approach involves understanding and respecting Chinese storytelling sensibilities, rather than imposing Western perspectives. He notes that initial attempts at co-development teams were unsuccessful, leading him to believe that the Chinese approach to feature film storytelling differs significantly from the US model. He highlights the value of face-to-face collaboration, stating that “nothing really happens over Zoom or email…everything important happens face to face, usually over some very good food.” This contrasts with the more transactional nature of many Hollywood meetings.

Strategies for Hollywood in the Chinese Market

When asked for advice for Hollywood studio executives, Celig recommends focusing on building strong relationships with China, citing Disney’s success with Disney Shanghai and Disney Hong Kong as examples. He suggests that co-productions based on pre-existing, popular Chinese IP, like the upcoming Peppa Pig feature film co-produced with Chinese teams by Watsu, have a higher chance of success. He also notes the popularity of Japanese anime in China. He emphasizes that only very large, successful films are likely to secure significant screen time in China, requiring substantial investment and established relationships.

Current Projects & Future Outlook

Celig’s company is currently working on two new projects with Chinese companies: Hey Toma (Season 2) with a company based in Hao, and CPOPS, a spin-off of the popular Chinese show The Rainbow Crew with Perfect World Animation in Beijing. He emphasizes the collaborative nature of these projects, highlighting the importance of listening to and respecting each other’s perspectives. He believes this approach, characterized by constant communication, frequent in-person meetings, and genuine collaboration, is key to success.

Notable Quote:

“Chinese films about Chinese people that focus on Chinese culture…shows the results of their learning and their hard work.” – Josh Celig, emphasizing the triumph of the Chinese film industry.

Technical Terms:

• IP (Intellectual Property): A legal right that protects creations of the mind, such as inventions, literary and artistic works, designs, and symbols.
• Co-Production: A film or television project jointly produced by companies from two or more countries.
• Box Office: The total amount of money taken from ticket sales for a film.
• Dubbability: The ease with which a film or television show can be translated and dubbed into other languages.
• Tier Cities (1st, 2nd, 3rd, 4th): A classification of Chinese cities based on their economic development and population size.

Synthesis/Conclusion:

The Chinese film market represents a significant opportunity for Hollywood, but success requires a fundamental shift in approach. Large-scale, hybrid co-productions have proven largely unsuccessful. Instead, building strong relationships, respecting Chinese cultural sensibilities, and focusing on projects that resonate with domestic audiences – particularly through animation and leveraging existing Chinese IP – are crucial. The growth of the Chinese box office, driven by a burgeoning middle class and increased access to entertainment, makes understanding and adapting to this evolving landscape essential for future success. The emphasis on face-to-face collaboration and genuine partnership, as exemplified by Celig’s work, offers a promising path forward.