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WASHINGTON -- China has agreed to significantly improve market access for American movies, capping a weeklong visit by China's leader-in-waiting that led to billions of dollars in business deals, Vice President Joe Biden said Friday.
"This agreement with China will make it easier than ever before for U.S. studios and independent filmmakers to reach the fast-growing Chinese audience, supporting thousands of American jobs in and around the film industry," Biden said in a statement obtained by NBC News after Chinese Vice President Xi Jinping's whirlwind tour to the United States. "At the same time, Chinese audiences will have access to more of the finest films made anywhere in the world."
"U.S. studios and independent filmmakers cite China as one of their most important world markets, but barriers imposed by China and challenged by the United States in the WTO have artificially reduced the revenue U.S. film producers received from their movies in the Chinese market," said United States Trade Representative Ron Kirk. "This agreement will help to change that, boosting one of America's strongest export sectors in one of our largest export markets."
Pool / Getty Images
Chinese Vice President Xi Jinping, left, shows Vice President Joe Biden a chocolate-covered macadamia nut, given to him by Hawaii Gov. Neil Abercrombie, at the start of a meeting of Chinese and American governors Friday at Disney Hall in downtown Los Angeles.
On a global basis, films and other audiovisual services create a $12 billion trade surplus in the sector for the United States, the White House said.
Last year, Chinese box office revenue was up to $2.1 billion, with much of that from 3D titles.
The agreement allows more American exports to China of 3D, IMAX, and similar enhanced-format movies on favorable commercial terms, the U.S. Trade Representative's office said.
"This is a major step forward in spurring the growth of U.S. exports to China," Chris Dodd, president of the Motion Picture Association of America (MPAA), said in a statement.
"It has long been a top priority for the MPAA, and it is tremendous news for the millions of American workers and businesses whose jobs depend on the entertainment industry."
Walt Disney Co. president and CEO Robert Iger said in a statement obtained by The Hollywood Reporter: "China is one of the most populous countries in the world, and this agreement represents a significant opportunity to provide Chinese audiences increased access to our films."
The U.S. movie industry has long complained about China's tight restrictions on the number of foreign films allowed into the country each year, a limit that they say helps fuel demand for pirated DVDs that are widely available in China.
While the quota of 20 foreign films per year remains in place, Beijing granted other concessions that pleased Hollywood.
The deal strengthens the opportunities to distribute films through private enterprises rather than the state film monopoly, and ensures fairer compensation levels for U.S. blockbuster films distributed by Chinese state-owned enterprises, U.S. trade officials said.
The agreement will be reviewed after 5 years to ensure that it is working as envisioned, they said.
NBC News and Reuters contributed to this report.
More content from msnbc.com and NBC News
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There should be no pressure made on China to accept some or any of the sexually explicit films Hollywood's churning out right now. It's one thing for us to demand an even playing field in areas such as manufacturing. It's an entirely different matter to expect them to be accepting of film they see both as morally offensive and corruptive of their society!
The main reason there were restrictions on US movies were to protect China's own film industry. Nothing more. It had nothing to do with content.
Sorta like banning Walmart to protect the small stores.
Nothing to do with content? Don't be so sure. If they don't care about content then why they just banned almost all of their own popular TV shows from singing contests to reality shows ?
From the NY Times 1994:
So yes, it wasn't for content. Of course they will still ban individual films that they have issues with. Just as every country does. However, this article and 1994's article were both referring to an overall policy that had been in place for the last 18 years.
http://www.nytimes.com/1994/07/06/business/worldbusiness/06iht-chifilm_0.html
@RBTatt-
Are you kidding about the moral angle?? Ever watch the films released regarding the great heritage of China? Heritage and history being the number one tool of a repressive government...create a pretty tourist image and nobody sees the real manipulation going on.
The biggest problem with this agreement is the cap on movies remains. The idea that the 'individual" distributors will not be harassed by the Chinese government into creating a pre-planned failure for this agreement..now that is morally corrupt wishful thinking.
The existing governement of China gains face by allowing this and will only supress this concession in other ways that allows them to deny any loss on that gain.
Biden loses face all over this. This is negotiating as weaker position for no real gain for more than a handful, probably less than one-tenth of a percent of America, who likely already have good income. Where is the deeper value to America since Biden is a representative of us ALL?
RBTatt, What? Are you an emissary from the Vatican?
Congratulations you increased the amount of movies they'll be able to pirate. Sound business.
Not really. They could already pirate all of our movies anyway, this just makes it easier.
Looks like Obama took care of his Hollywood celebrity friends that donate big money to his campaign! What a joke and a fraud! Think you know Obama? Think again! Only history will reveal just how corrupt Obama really is!!!
Wake Up America!
Hey Spark, I would suggest you abandon your sinking ship now before it's too late. Does this increasing trade with China suggest more jobs? Apparently that is what Pres. Obama cares about. Stock market at it's highest level ever. Economy showing improvement every month. Local (St. Petersburg, Fla.) news article on t.v. yesterday told of a restaurant closing 3 years ago because of the recession. Reopened in 2010 and had it's best year ever. Beginning to happen all over the country. Good luck in 2012.
Dan, do you think the extra profits added to the coffers of the entertainment industry are going to create more jobs for the average Joe? Think again. These idiots cannot even produce an entertaining movie.
And yes, I can see where some businesses would be succeeding...prices on everything have skyrocketed.
Yes Dan... Abandon one corrupt sinking ship and jump on the other. That's what America is all about.
There is $10.47 billion dollars in US ticket sales money in 2011 that says you haven't a clue what you are talking about. Thankfully we have no need to check with you first and get your opinion before seeing a film.
Yeah, let them have access to movies as if they haven't been doing that since the dawn of piracy. China has been the culprit behind illegally mass producing copyrighted materials and infringement of intellectual properties.
WRONG! Most attacks are eventually traced back to USA and Britain. China is only the scape goat.
http://www.msnbc.msn.com/id/44631231/
Yeah, it's kind of like okay you give us more access to rip you off and make more money illegally. Then we will share a little of what we make the legal way!
I hate to knock anything that's good for someone, but when will anything with China be good for all of us?
@new in cyberspace from Toronto
The article you posted had nothing to do with copyright infringement and piracy so I'm not sure why you posted it.
Also, It doesn't even support your statement. It does show one instance where a chain of attacks was traced back to servers located in the U.S. But I'm not sure how you extrapolated from the article that "most" attacks are launched from the U.S.
Lets see.. Obama has taken care of the auto industry bigwigs and unions, the banking industry honchos, and now he pays off the Hollywood elite and their union workers. All that's left is the other 90+% of the rest of us.
I guess us common folk are gonna have to start making political contributions to get any consideration.
He's already done to us what he does to Michelle...and I don't mean taking her on vacation.
They already have access through piracy before the American public does.
what porn
THATS WHAT I SAY ; ROMNEY NEEDS TO LET AMERICA SEE WHAT HE'S REALLY BEEN UP TO FOR THE LAST 6 YEARS ON HIS TAX FORMS !!!!!!!!!!!!! then watch him self destruct with the american voters. no use for him to keep pretending that he's showed us the tax information america has been asking for. these gullible and desperate republican conservative tea partiers wants to hide romney's past dealings. but there are smart people out there ,that are seeing right through the smoke and mirrors. they can run from it, but time will not let it hide. REPUBLICAN HIPOCRITS HAVE A MEAN SURPRISE AWAITING THEIR ANGEL OF LIGHT
wrong forum and pretty much garbage anyway.
What do you expect? Two Communist VP's yapping about nothing. I will, if everyone else will, go without anything made in China.
Granted, that means chucking the electronics, kitchenware, clothing, oh hell damn near everything. But can you imagine if we had to get off our dead asses and start making everything again, or importing only from countries NOT on the list of worst treatment of their own citizens list.
Okay, so we make everything ourselves, imagine, in less than a year, China would choke too death on it's own crap. Than the people there might have a real revolution.
But until we get rid of our own commies it won't happen.
What the hell would a Chinese slave laborer due with an American movie CD?
That's the best Biden could come up with? Do you know how much money we just spent to guard this piece of crap?
Amazing how the media ignored all the pro democracy demonstrations going on while this knucklehead ate and slept in luxury and his own people are starving. Yes folks, they never show the prison camps or slave factories, but honest they exist.
Having this man on our soil was a direct insult to ALL American veterans. Remember Korea, Vietnam ?
Hellooooo, anybody out there???
We cannot make anything anymore....EPA reg's are strictly against U.S manufacturing.
It does seem we do more to support the enemies of America than we do for anyone else including ourselves!
Hollywood; now there's a good influence for you!
There goes the neighborhood!
Well I'm sure somone on here will have some snappy remark about this, But I think that this is a rather good thing to have happen.
It will put more money into the Hollywood elite. With trickle down economics that should mean more jobs in the US.
How many Chinese movies does USA (Hollywood) allow here ?
Who cares. I'm sure they all suck.
Pretty much can be said for what's coming out of Hollywood also.
china will buy off gm stocks from goverment to make china motors. gov. quinn , obama , biden selling out to china some great americans .
Oh cool. 2 billion chinese to watch mooooovies!
That should create a ton of jobs here for us. New DVD making factories will spring up across the land. You should be able to walk across The United State via the rooftops of DVD making factory's without ever once setting your feet upon the ground.
I can't wait!
Oh come on now! You'll have to come down occasionally on your trip to eat or use the restroom won't you?
...
My that will help our industrial workers go back to work with FAIR trade makin movies.Whoopie for our leader Obuma. a aa a maybe illegal immigrants could help with all the demand too,we could let them stay and get freehand outs and services that citizens have to pay for.But, Hey wise voters,re-elect Obuma.
There is a company called CINRAM that produced the vast majority of DVD's....I doubt they are going to open a facility in the U.S to make DVD's for China. Most likely, they wil be manufactured in China at a minimal cost.
so fing what...
Chalk up another win for the USA! Great job odumbass....This administration is full of "tools" How many times did he have to bow down for this deal....
Of couse we could look at this in a positive light...let's be sure to send the movies that have been dumbing down our country or better yet, lets send them a few scum liberal actors, especially the ones who hate the USA
Do most of the people here have a heck of a time properly spelling someone's name. It is pretty childish to call him O-Bum-a or Odumbass or whatever. While I am 50/50 on his policies myself I just get extremely irritated at people who can't even be polite. I don't care for some of the democrat's policies, Notably the Health care plan that passed, But I also Don't care for the republicans. Their track record in government has been nothing short of obstructionist and self-centered. I am an independent moderate myself. I would like to see some caps on Health Insurance costs. For women, their body is their own. Enough said. As for guns, Keeping guns out of the hands of criminals is impossible, but I bet some criminals won't be so quick to run in and do something stupid if they know the person in the house owns a gun. Basically if the criminal is serious, that lock on the door won't stop them. I have absolutely no forgiveness for criminals in the justice system if they have confessed to their crime or there is overwhelming visual evidence that proves they were there.
Back on topic: This is a good thing because hollywood gets an expanded market to sell. The actual production (i.e the films) is happening here.
this makes complete sense seeing that Hollywood is by in large pro comunist, anti American. Perfect.
China at least their people have never had a problem with US films from entering their markets or homes. They just usually bootleg them instead of buying the rights to distribute them legally for retail sales, rentals or screen them in theaters. This "agreement" will not mean much if anything if the current wide spread pirating is still rampant.
Why would we expect more out of this administration........ they have to take care of their Hollywood movie people because thats where some of the donations come from........ The movie industry is losing revenue here in the states because people would rather eat and I'll bet the higher gas prices under Obama and Biden are taking it's toll on the movie industry......... We've run out of money so they need to make new friends and they'll leave us in the dust........ We can change it all in November 2012......Pay attention folks....!
The Obama Administration taking care of their well heeled Hollywood supporters.
You want to talk about the 1% that are favored? Uh, the blowhard Michael Moore comes immediately to mind. But there are many Hollywood bigwigs that benefit from this Administration.
Hey, Hollywood is one of our biggest assets and imports to other countries. Movies started here and they still reign supreme. Allowing the film industry to use private venture distributors in the PRC will most certainly cut down on the pirating simply because these private companies will police their own industry, making pirating more difficult to achieve. After all, the PRC is an electronic wizardry of companies, techniques and technicians that can create thief proof videos. The movie industry in China is not that big, 3d moveis are 50-60 yuan for a ticket ($9.00), and living in a non-wealthy city like Guilin, as I do, the average worker makes bout 1500 yuan ($238.00) per month, so spending nine of it at a movie made in China is not a part of their frugal budget. Hollywood has always been Hollywood, Obama's ties are symbolic, after all he is a Hollywood Hero! He is the stuff movies are made from and will continue to made from - a source of rags to success. Now a Romney, born to wealth, educated in wealth, deals in wealth is not a hero - just another run of the mill business capitalist, corporate raider type who ain't never missed a meal. Gingrich, well he loves the high life and the celebrity status but lacks real credibility - basically old Newt is just a man who pimps himself out to whoever needs a favor. Remember, that pirating is a big business in the Philippines, where Microsoft xl was on the black market for $60.00 shortly after its release to the stores. As with Michael Moore, he asked a real question of Congressmen/women - Sir is there anyone in your immediate family now serving in Iraq? thats a legitimate question to the blowhards who avoid real questions due to the nature of the answer. And, not one replied in the positive. So, our boys and girtls get sent to die and to suffer debilitating wounds while the elite stays home and eats well, sleeps comfortably, drives the big cars and acts as if they are really contributing, i.e. Bush the coward who hid out in Alabama and Cheney the coward who had a medical deferment and said he was to busy for Vietnam. But these are the same guys who will send your son off into battle very quickly.
Just as the Chinese limit access to their market to protect their industries, the US government ought to do the same. We also need to slap import taxes on countries who do not pay the same as we do and who either do not have the same environmental protections or have them but do not enforce them. This way we can build up our industries and our products can compete on quality, not just price.
China is the fastest-growing economy in the world.
Their fairly well-off middle class is larger than the entire population of the United States. Sure, their poor population might be ten times as large, but who cares about them, really?
Businesses are rapidly learning that, if their goal is simply to "make money," China is where you go to do it.
It remains to be seen if China's growth is simply a huge economic bubble. If it is, be very afraid, because it's holding up a lot of the world right now. China's economy collapsing would be much, much worse than the same thing happening to the US.
But many people look at the situation like it is right now, and see the US declining as a world superpower, and China taking over. Quietly, no big wars or confrontations, just a slow transfer of power.