China Finally Pays Hollywood Studios For 'Life of Pi' And Others
Chris Dodd confirmed that China has now paid the money owed in full.
The Chinese government has paid six major Hollywood studios in full, following a lengthy dispute over box-office payments, the Motion Picture Association of America announced on Tuesday, reports the Wall Street Journal.
"We are pleased to hear that the Chinese government has addressed the matter and all money due will be paid in full. It is our understanding that the payment process has recommenced," said Chris Dodd, head of the MPAA.
The dispute concerns a 2 per cent luxury tax that China wanted to impose on box-office receipts. According to The Wrap, that tax was not part of the new more Hollywood-friendly trade agreement the sides had hammered out last year and the major studios saw it as a violation of the pact.
Essentially, the Chinese government's change of tact held up millions in payments to the studios, who refused to cash checks for several movies including Ang Lee's Life of Pi with the tax taken out.
It's important for the U.S and China to be on the same page, given the latter has surpassed Japan to become the second largest market for movies in the world. Analysts predict that by 2020, it may eclipse the United States as the dominant source of box-office revenue.
Life of Pi, based on Yann Martel's Booker Prize winning novel, grossed 570 million yuan in China - about $83.4 million. Iron Man 3, which was partially shot in China, grossed 753 million yuan, while James Cameron's Avatar grossed $1.39 billion yuan in 2009.
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