Insiders are working to support the film industry and prepare for the sector’s recovery
Blockbusters such as Detective Chinatown 3 are delaying release dates in response to the pandemic. The country’s film industry is striving to get back on its feet. The first installment of the Fengshen trilogy is one of the films ready for theatrical release when cinemas reopen. (PHOTO PROVIDED TO CHINA DAILY)
China’s top film authority is working to introduce relief measures to help the domestic industry survive the COVID-19 crisis.
The China Film Administration, the country’s top regulator for the sector, released a statement on its official website on April 3, announcing that it has coordinated with the Ministry of Finance, the National Development and Reform Commission, the State Taxation Administration and other related departments to research preferential fiscal and tax policies.
Such policies include exemption from a 5 percent levy on ticket revenues by the National Film Industry Development Special Fund.
Initiated in 1997, the fund was established to support quality film production, urban cinemas’ maintenance and renovations, and filming in areas where ethnic groups reside.
The administration also said it will enhance support of the creation and promotion of major films, and provide guidelines to local authorities to help their film companies overcome difficulties.
It is also working to enrich content for internet platforms to meet Chinese demand for watching quality films at home.
Blockbusters such as Detective Chinatown 3 are delaying release dates in response to the pandemic. The country’s film industry is striving to get back on its feet. The first installment of the Fengshen trilogy is one of the films ready for theatrical release when cinemas reopen. (PHOTO PROVIDED TO CHINA DAILY)
Industry players are working hard to prepare for the resumption of operation of the country’s more than 12,000 cinemas.
Bona Film Group founder and CEO Yu Dong suggested privately owned companies should not lay off employees, pointing out this is very important for the morale of the entire industry.
The group is one of China’s largest privately owned film companies and is known for recruiting Hong Kong veterans to direct Chinese mainland action blockbusters, such as Tsui Hark’s The Taking of Tiger Mountain and Dante Lam’s Operation Mekong.
“Many companies have been facing cash-flow problems. But I believe it is the duty and responsibility of an enterprise to keep its employees, especially since some of them have strived to fight shoulder to shoulder with you (founders) in the early tough days,” Yu said in a recent online meeting organized by the China Film Association.
Yu revealed the company’s big-budget war epic Bingxue Changjinhu (Frozen Chosin) has lost up to 150 million yuan (US$21.2 million), mainly because of the suspension of production in Northeast China’s Liaoning province.
Rao Shuguang, president, China Film Critics Association. (PHOTO PROVIDED TO CHINA DAILY)
The film portrays the story of the 17-day Battle of Chosin Reservoir in extremely cold weather on the Korean Peninsula in late 1950 that became a turning point of the Korean War.
Yu said filming was initially planned to start in late January. But the outbreak led to the suspension of filming after the 2,000 cast and crew members had gathered at the shooting sites in Liaoning. Since the movie is set in winter, filming must be postponed until November.
Bona Film produced several of China’s highest-grossing films for 2019, including The Captain and The Bravest. But Yu said it would be a big challenge for the company to “rescue itself” in this special period.
He said he hopes the top film authority will consider exempting all Chinese films from the 5 percent levy for three years.
Song Ge, chairman of Beijing Culture, which is known for runaway hits like Wolf Warrior 2 and The Wandering Earth, said he hopes film companies receive tax relief this year.
He also revealed that the company’s four upcoming movies, including the first installment of director Wuershan’s fantasy Fengshen trilogy and Lu Chuan’s adventure film Bureau 749, are preparing for theatrical release and could be ready when cinemas reopen.
Lu Shaoyang, dean, Peking University School of Journalism and Communication. (PHOTO PROVIDED TO CHINA DAILY)
Xu Tianfu, vice-president of Hengdian Group, which is based in Zhejiang province and owns the country’s largest film and television shooting base, Hengdian World Studios, said 310 film crews totaling over 5,600 members were forced to suspend studio work during the lockdown but around 20 crews have resumed shooting.
He revealed the group’s over 400 cinemas, which have around 10,000 employees in 31 provinces, municipalities and autonomous regions, are all shut, causing huge losses.
Song predicted the epidemic’s impact on the industry may last at least 18 months. He suggested the government reduce taxes and provide subsidies to support films released in the first six months after theaters reopen.
Detective Chinatown 3, the latest installment of director Chen Sicheng’s blockbuster Detective Chinatown franchise, led presales among big-budget contenders before the Spring Festival holiday. Around 200 million yuan worth of tickets were sold before the “golden period” for Chinese cinemas. But all new theater releases were halted during the holiday, as the epidemic intensified.
Yu Dong, founder and CEO, Bona Film Group. (PHOTO PROVIDED TO CHINA DAILY)
Chen previously told media the film would instead be released during summer vacation or next Spring Festival.
He pointed out that the sector in China is influential thanks to popular films rather than profits and suggested the China Film Association help filmmakers with promising ideas or projects to get bank loans.
Last year, China produced over 1,000 features, grossing 64.3 billion yuan at the box office. The top 10 films earned nearly 28.6 billion yuan, or 44 percent of total receipts.
Some small and mid-sized film companies had struggled for a long time before the outbreak.
About 3,000 film and television companies went under last year, according to Qcc, a government-recognized enterprise credit rating system.
Chen Sicheng, director. (PHOTO PROVIDED TO CHINA DAILY)
Song Ge, chairman, Beijing Culture. (PHOTO PROVIDED TO CHINA DAILY)
Lu Shaoyang, dean of the Peking University School of Journalism and Communication, suggested major studios team up to create digital platforms to emulate the shift that has taken place in the United States before the pandemic.
Lu pointed out that the global media-streaming market reached US$44.8 billion last year, surpassing the global box-office gross of US$42.2 billion. He suggested Chinese film companies also consider developing productions for streaming sites to reduce risks.
China Film Critics Association president Rao Shuguang projected that domestic consumption will be different after the epidemic passes in China and that films that run for around an hour, roughly half the length of silver-screen features, will become more common.
“In such a special period, Chinese filmmakers should not passively wait for support and help,” Rao said. “It is time to self-study to polish skills to create better films.”
