The Chinese government has set out new restrictions on foreign investments across a range of sectors, including the entertainment industry.
The document from China’s State Council limits overseas investments in areas such as hotels, cinemas, the entertainment industry, real estate and sports clubs. It also bans outright investments in enterprises related to gambling and the sex industry. Rather, it encourages companies to put money into projects related to the “Belt and Road” project, an initiative backed by President Xi Jinpin that seeks to link China with other parts of Asia and Eastern Europe and boost investments in technical standards, research and development, oil and mining exploration, agriculture and fishing.
“Profound changes are taking place in international and domestic situations, and Chinese enterprises face not just relatively good opportunities but also various risks and challenges in overseas investments,” the State Council, China’s cabinet, said in the statement.
Last year, Chinese conglomerate Dalian Wanda Group made a $3.5 billion investment in Hollywood’s Legendary Entertainment. The company later pulled the plug on its proposed deal to purchase Dick Clark Productions for $1 billion. The new regulations crack down on exactly these sorts of investments in the TV and movie sector overseas.
