Why China Is Hoarding Hollywood’s Box-Office Profits

A Wanda cinema in Fuzhou, in southeast China’s Fujian province, in 2012 Photograph by Imaginechina/Corbis

As Hollywood movies have raked in hundreds of millions of dollars playing in Chinese theaters in 2013, the films’ studios have apparently enjoyed none of the profits. A state-owned distributor, China Film Group, is refusing to share any box-office payments, according to the Hollywood Reporter, over a disagreement involving a new 2 percent tax increase that China has leveled at U.S. film studios.

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