China agrees to open its market to more American movies

PanARMENIAN.Net - China agreed on Friday, Feb 17, to open its market to more American movies, in a dramatic Hollywood ending to a week-long visit by China's leader-in-waiting that produced billions of dollars in business deals, Reuters reported.

"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," Vice President Joe Biden said in a statement.

U.S. Trade Representative Ron Kirk, whose office pursued the agreement as Chinese Vice President Xi Jinping traveled across the United States, said the pact would boost "one of America's strongest export sectors in one of our largest export markets."

The agreement came during Xi's stop in Los Angeles on the last leg of a visit that began in Washington and went through U.S. farm country in Iowa.

It does not require China to lift its annual quota of 20 foreign films per year, but essentially expands it through other concessions that pleased Hollywood.

Beijing will permit 14 premium format films, such as IMAX or 3D, which will be exempt from the quota, as will the 2D versions of the films, a U.S. trade official said.

Chinese box office revenue grew to $2.1 billion last year, with much of that coming from 3D titles, a rapidly growing sector of the film industry.