On the roll for a movie boom

On its fastest growth track in decades, the domestic film industry needs to take a step up to compete internationally

In the early 21st century, the annual output of Chinese films was less than 100, most of which were funded by direct or indirect government investment. The market was depressed and the box office was around 500-600 million yuan annually. Cinemas relied on Hollywood blockbusters to sustain their business, and the only Chinese films that sold well were the so-called "New Year greeting films", made by directors such as Feng Xiaogang.

At that time, film culture was also in low gear, while TV stars, TV shows and dramas raced ahead. On the verge of collapse, China's film industry began to change in 2004.

Eliminating the entry barrier and loosening censorship, the industry started to open up to public corporations and funds. Even the filmmaking process and cinemas were open to overseas capital. Hence, the movie sector was among the most open and advanced sectors of China's cultural industry. Since then, China's film industry has entered a "golden age" with rapidly growing output and increased box office revenues. The industry has also become more influential and attracted sufficient funds to invest, sponsor and support various kinds of movies. Now China's film industry is not only a leader for China's cultural industry, it has also aroused extensive international attention

Last year, China's film industry enjoyed an unexpectedly strong growth, despite the financial crisis. While the government tried hard to stimulate the economy to achieve 8 percent growth, box office earnings increased by nearly 50 percent over the same period in 2008. Compared to the average global film industry growth of 8 percent it has been a great performance. China has become one of the most rapidly growing film markets in the world.

Facing fierce competition from big budget Hollywood blockbusters, such as Transformer, Harry Potter and the Half-Blood Prince in 2009, domestic films still accounted for over half the market share. Moreover, 12 domestic movies have each taken more than 100 million yuan at the box office.

The Founding of A Republic was the first domestic film in China to gross over 400 million yuan at the box office and, for the first time, there have been five domestic movies taking over 200 million yuan each.

Besides the three internationally renowned directors, Feng Xiaogang, Zhang Yimou and Chen Kaige, some young directors have also shown their talent. These include Ning Hao, the director of Crazy Racer; Lu Chuan, who directed City of Life and Death and Gao Qunshu, co-director of The Message.

China's film industry is transforming from one with only a couple of movies and film makers at the top, to one which is based on diverse creative talents and a variety of genres, backed up by mainstream blockbusters supplemented by low-cost movies. I believe that the film industry will enter a fast-growing period after this "golden age".

The development of China's film industry is amazing because it has flourished within such a short period of time. China is the largest market for free TV channels and shows, and it is one of the world's biggest pirate markets. You can easily get movies or other entertainment content in a convenient, cheaper way. Despite this, more people are willing to pay for a cinema seat regardless of the time and money it costs. This may be why the box office in China has sustained an annual growth rate of 30 percent for the past seven years.

However, though the industry is growing rapidly, it has a weak foundation and is still facing fierce competition from Hollywood movies, TV shows and pirated videos. As a rising industry, some obstacles need to be overcome to ensure its future development.

One obstacle is that undeveloped cinemas may influence the expansion of the market. In the past, the development of cinemas could not fully meet the needs of audiences. As the property prices continue to soar, the construction of new cinemas is restricted by rising costs. The local governments should provide some space for cultural facilities, otherwise, cinemas built at market rates will have difficulty surviving in the long run.

The lack of large film corporations is also a problem waiting to be solved. To be specific, there are few renowned companies in China's film industry and investment disorder leads to inefficacy. Moreover, the low level of company specialization means it is difficult to attract enough high quality capital.

For example, financial institutions cannot easily identify reliable quality projects for investment. The relevant government departments should establish production and distribution rules, in order to ensure that the industry grows healthily.

Another problem is that Chinese movies lack international influence. Although in the past, some Chinese films, like Hero, have attracted large global audiences, in recent years, few Chinese movies have won international awards and become globally successful. One of the reasons for that is a tendency toward over-commercialization. A possible solution might be for the government to adjust the Chinese-foreign co-production regulation permitting foreign capital to invest in projects, so as to make full use of the international experience of foreign companies and upgrade the level and competitiveness of Chinese films.

Talent cultivation can also be an obstacle. In this era of globalization, we should establish a training system for students in order to improve the professional level of China's film industry.

Finally, there is the need to establish a value system for mainstream Chinese film aesthetics on the premise of cultural diversity. Audiences should be captivated by a movie's cultural values and influence as well as the spectacle. If Chinese movies can achieve some breakthroughs in this respect, expressing Chinese cultural values for audiences both home and abroad, it would be a great contribution to the cultural industry and the development of society.

Nowadays, China's film industry is trying its best to develop commercially. This can lead to box office revenues without acclaim, and style over substance, as moviemakers appeal to the lowest common denominators of public taste. Movies are a cultural entertainment product based on artistry. Without the artistic quality, they merely become an amusement and simple diversion.

Whether films possess artistic quality, or not, is an important sign to measure the maturity of the movie industry. Movies copying Curse of the Golden Flower and Red Cliff, which put all the business elements together to provide a cold dish, will never succeed again.

Recent Chinese blockbusters have succeeded with critical favor. Films such as Assembly, Forever Enthralled, The Founding of A Republic, The Message, and Bodyguards And Assassins, indicate that Chinese movies have matured and developed in both form and spirit.

However, China's film industry still has a long way to go. It is still in the early stages of transforming from a major movie producing country to a leading power in the world film industry.

The author is executive dean of the School of Journalism and Communication, Tsinghua University.