The Model Research Of Foreign Direct Investment Of China’s Private Movie Industry

Nowadays the economy of China develops very fast and its political status rises among other countries. Despite that, the profound Chinese culture, with such a long history, has no significant influence in America, Europe, and even the surrounding southeast countries. As a part of cultural industry, Chinese movie is not well known internationally although it has drawn much attention and get a lot of investment from both within film industry and other industries. Chinese movie is still a small part of the world film industry and few Chinese movies have been shown in other countries. With more and more countries compete in cultural soft power, movie plays a very important role because it’s easier to be internationalized. Compared to book, performance and other cultural products, movie is easy to spread among countries so as to spread the influence and shape the image of a country and appeal to people in other countries. Among various ways to “Go Abroad”, movie trade, cooperation filming cannot produce much benefit and cannot promote Chinese culture effectively, and neither can they help to develop Chinese movie industries in long term. As a result, this paper studies the Foreign Direct Investment(FDI) of Chinese private movie enterprise, aiming to provide suggestions in choosing FDI models so as to enable the “Go Abroad” process to be smoother and to produce more economic and cultural benefit.Through literature review, material and data collection as well as case comparative analysis, this paper chooses the Resource-Based Theory(RBT) as the theoretic base, then studies the macroeconomic environment,current status and features as well as problems of FDI of Chinese private movie enterprise. Then through the comparison of advantages and disadvantages of FDI models and reclassification of them, based on RBT, considering the heterogeneous resources and the external complementary resources, the selection scheme of FDI models for Chinese private movie enterprise is formed. Finally, by comparing current FDI status and existed and needed resources of Huayi Brothers and Wanda Group, suggestion of FDI model is made.The conclusion is that some Chinese private movie enterprises have cultural resources and abundant capital and resource integration capability, all of which haven’t been used fully. What they lack are some intangible resources like proper method of telling stories, advanced filmmaking technology and cinema management experience, so they should take joint venture and M&A as the first option. Among them Huayi Brothers should choose joint venture and Wanda Group should take M&A when FDI.Based on RBT, this study makes some innovation in both theory and practice. First is the object of study. Differing from many FDI model research of manufacturing industry, this paper analyzes FDI model of film industry, thus making sense in cultural, economic and political aspects. The second is the depth of study. Most of the current research pays attention to current situation, significance and motives of FDI, but few focuses on model research. The third is the theoretical innovation. This paper divides FDI models into two types, completely control model and sharing control model, based on the degree of management right, and then chooses a proper model combining internal resource and needed external resource. And by combining RBT and characteristics of film product, the FDI model choice can be utilized specially in film industry.