In an effort to gain more control over content and grow local entertainment companies, China has stopped foreign investment in TV and film production companies. They instructed any international media group to work with local partners with individual projects.
In 2004 China decided to allowed foreign media companies to buy a minority position in local production companies. This ruling sets aside that option.
"Our policy is to temporarily not approve the creation of new joint companies.
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People can jointly invest in filming individual movies and individual television dramas, but we are not going to approve the creation of program production companies."
The continuous changing of decisions and fluid state of the Chinese, make it almost impossible for media companies to do business at this time in China. It's the major reason Warner Bros. (TWX) pulled out of its plans to open theaters in China in November. The regulatory atmosphere at this time can't be counted on from month to month.
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