The Model Research Of Foreign Capital Into China’s Film Industry

The media industry is the last piece of lucrative indu stry, and compared withother industries, the regulation of media industry are quite severe. There are a lot ofrestrictions that foreign capital entry into the field of China’s media industry.Compared to China’s domestic film industry, the Chinese government has set differentlevels of access conditions to foreign capital in the aspects of production, distribution,screening and development. Prior to China’s accession to WTO, film industry nearlybelongs to the prohibited foreign capital industries. Since China’s accession to WTOin2001, the entry restrictions of Chinese film industry to foreign capital wereloosened in all sectors. The entry mode of foreign capital, the relevant issues it raisedand the effects it brought about have become the focus attention.When companies decide to enter the international market, an important decisionis how to enter the target market. The choice of entry m ode is an important decision todo overseas investment operations, and also is the first issues that enterprises facewhen they plan to engage in overseas investment. This article will focus on the studyof market entry mode of foreign capital, and analyze its market entry mode selectionsand factors that affect the entry of foreign capital into China’s film industry, trying tomake a comprehensive interpretation of foreign capital market entry mode, filmindustry policies and the development relationships between the industries, andproviding a reference for domestic film i ndustry to optimize the foreign financingmechanisms.The research shows that the reform of the Chinese film industry after WTO entryis mainly including that some foreign media group, in the business logic of capitalism,through "peripheral infiltration" and "step by step" strategy detour, use the entrymodels of direct exports, contractual forms of cooperation agreements, joint venture,investment involved in co-productions and equity investment in the main film andtelevision companies to invest in the C hinese film market. The factors that affect theentry mode choice of foreign investments are mainly the policy change of filmindustry and the development of the film industry itself.The reforms of China’s film industrialization is inseparable from forei gninvestment and construction at the aspects of industrial chain upstream-production,midstream-issued, downstream-screenings as well as the film product development, and foreign investment, especially foreign media group also needs to expand itsoverseas film market further. Therefore, the Chinese film market needs a more openpolicy environment and foreign regulatory and access policy is one of the focuses ofthe reform, foreign investment, especially some large media groups need to determinethe optimal way to enter the Chinese market through a comprehensive grasp of theChinese film market and the entire media industry environment. After theconsiderations of the series of questions, this article put forward the thinking ofpromoting China from the "Film Country" to "Film Power" in the two dimensions ofregulation mechanism and reformation of the film industry.