Wanda and Hollywood: Three Questions

The craft of filmmaking is a perilous one, a balancing act between the art of cinematic storytelling and capricious public taste. Overt inclusion of foreign propaganda would likely be a destabilizing ingredient in any film, just enough to turn a potential blockbuster into an expensive turkey, undermining a studio’s reputation in the process.

But facing a U.S. administration that is hostile to China (at least on the surface), Hollywood’s new Mandarins, in particular the squires of Wanda’s interests in The Business, must be prepared for three questions that are likely to arise in the coming months from either the public, a Republican-dominated Congress, or the new Administration.

First is a matter of US law. In what is known as the Paramount Decree, in 1948 the U.S. Supreme Court ruled on an anti-trust case against Paramount Pictures, a ruling that compelled the separation of motion picture production and exhibition companies. On its face, Wanda owning both production assets like Legendary and exhibition companies like AMC appears to be a potential violation of US Law, and Wanda will be required to explain why it is not.

The second question touches on the issue of whether films made by a studio owned by a Chinese company will produce propaganda. To this point, we have focused on Wanda CEO Wang Jialin’s promise not to turn the studio into a propaganda machine. For what it is worth, I believe that is Wang’s intention. But let us not forget that the Party still holds considerable sway over Wanda’s fortunes and its core assets in China. Wang’s best intentions aside, Wanda must prepare to answer this question: what will Wang Jialin do when or if Xi Jinping comes calling with an unrefusible offer? Can Wanda afford to decline the call of Beijing if that call should come?

And finally, a third question. We have, in the last forty years, taught China how to create everything from machine tools to smartphones, and Chinese companies now lead the world in the creation of those products. Motion pictures and microchips are not analogous, but what has ensured Hollywood’s continued global leadership in filmed entertainment has been an accumulated century of technical and process know-how that results in marketable films if not global entertainment phenomena. Hollywood as a whole must be prepared to answer: at what point will Hollywood have sold its Mojo to Beijing? And to what degree does the presence of Chinese conglomerates in Hollywood speed that process?

At the very least, these companies must have answers at the ready. Ignoring or dismissing them will only serve to convince potential opponents that there is more to Wanda’s motives than a good business deal.