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August 22, 2014

The Economics of Chinese takeover of America's 2nd largest Movie Chain

Infographic: China's Dalian Wanda Acquires AMC Entertainment | Statista
You will find more statistics at Statista

By purchasing America's second largest cinema chain, Dalian Wanda Group  now owns American's 2nd largest movie theater the AMC Entertainment group foreign takeover yet by a private Chinese company. However the fact remains that why would a Chinese company be interested in a market like US where  growth has been flat and for all  the hype " movie making business is not really a big profit  churner , as the  financial risks  are too high , the number of blockbuster hits coming out of US has been nothing to boast off

However these much more to this that "  financial profits". Its like an apple iphone, which  has become an  American icon world over, ever mind the factories where its churned  out are at Taiwan and China ..Taking over US  Movie Theatres in US, by  Chinese is akin to the same thing 
Dalian Wanda's takeover is a kind of " Cultural Perestroika " which Chinese would use as a platform for increasing its own film industry " with a large US audience" ( remember Hidden Dragon  and Crouching Tiger 

Just as Chinese  goods have flooded American markets. China wishes to expand its own cultural horizon, along with markets with deep pockets  and keep  its rapidly growing economy hungry for more .