The Dalian Wanda Group’s Hollywood acquisitions are under more scrutiny from U.S. politicians.
In a letter Thursday, Rep. John Culberson, a Texas Republican, asked the Assistant Attorney General for National Security John Carlin to re-examine a registration act that would address “foreign lobbying and propaganda efforts in the United States, especially by countries like China and Russia.”
The Foreign Agents Registration Act (FARA) has not been reviewed since 1990, according to Culberson, and should be deployed so the U.S. does not “allow Chinese state-controlled companies a significant degree of control over the financing and content of American media.”
FARA was adopted in 1938, according to the letter, in response to rising propaganda from the Soviets and the Nazis in the U.S.
Culberson, the Chairman of the House Subcommittee on Commerce, Justice, Science, and Related Agencies, claims FARA’s power has been eroded over the last 26 years and has not adapted to technology and foreign mergers and acquisitions.
Wanda recently purchased Thomas Tull‘s Legendary Pictures for $3.5 billion, is pursuing Dick Clark Productions to the tune of $1 billion and has several strategic partnerships with major Hollywood studios such as Sony Pictures. (Thursday’s letter erroneously stated that Wanda had purchased a 49 percent minority stake in Paramount Pictures. The Chinese company was in talks to do so, but the purchase stalled after the removal of Viacom’s CEO Philippe Dauman.)
The congressman specifically calls out Wanda CEO Wang Jianlin, stating that he “does not try to hide his close relationship with the Chinese government,” referencing an article in which Wang said his goal is to “change the world where rules are set by foreigners.”
“This has profound implications for American media controlled by this type of Chinese company leadership,” added Culberson.
Culberson also recalled a report by the U.S.-China Economic and Security Review Commission titled “Directed by Hollywood, Edited by China: How China’s Censorship and Influence Affect Films Worldwide.”
“The report documents a growing number of troubling examples of how agents of the Chinese Communist Party are exerting control of American movie content, both through direct ownership of studios and distribution as well as through coerced cooperations with the Chinese censorship agency, the State Administration of Press, Publication, Radio, Film and Television,” he wrote.
At the end of the letter, Culberson calls FARA an “important and significantly underutilized tool the department has as its disposal,” and urges the DOJ to provide options “Congress may consider to ensure transparency, full disclosure and to mitigate this type of foreign propaganda influence over American media.”
Earlier this week, the Government Accountability Office accepted a request from members of Congress to review the Committee on Foreign Investment in the United States and determine whether its legal powers have kept pace with the influx of international buyers targeting American companies — particularly the fire hose of Chinese investment in Hollywood.
Rep. Robert Pittenger, a North Carolina Republican, headed a group of 16 members of Congress who wrote an initial letter to the GAO on Sept. 15 asking the body — Congress’ investigative arm — “to determine whether its statutory and administrative authorities have effectively kept pace with the growing scope of foreign acquisitions in strategically important sectors in the U.S.”
The letter expressed concern about Wanda’s acquisition of Legendary, as well as its ownership of AMC Theaters and pending acquisition of Carmike Cinemas. It referenced “China’s efforts to censor topics and exert propaganda controls on American media.”
Hollywood's 22 Biggest Box Office Champs in China (Photos)
Chinese moviegoers love to spend their hard-earned yuan on Hollywood blockbusters like "Captain America: Civil War," "Avatar" and "Star Wars: The Force Awakens." Comedies and dramas? Not so much. Read on to see which American hits have raked in the most money (according to BoxOfficeMojo) in that nation across the Pacific.
Disney/Marvel/Lucasfilm/Fox
"Furious 7" (2015)
$390.9 million
The Vin Diesel and Dwayne Johnson revved-up action flick is easily the highest-grossing Hollywood movie ever in China. The late Paul Walker remains among China's most beloved American actors.
Universal
"Transformers: Age of Extinction" (2014)
$320 million
Mark Wahlberg starred in the sci-fi movie based on the foldable toys, which was co-produced by two Chinese firms and was the first Hollywood movie to make more than $300 million in the Middle Kingdom.
Paramount
"Avengers: Age of Ultron" (2015)
$240.1 million
The superhero mashup is China's highest-grossing Marvel Cinematic Universe film, a franchise that's been embraced by the country's young-leaning moviegoers.
Marvel
"Zootopia" (2016)
$235.6 million
The buddy-cop comedy is the highest-grossing imported animated film in the history of the Chinese box office, and it played especially well in China's second- and third-tier cities.
Disney
"Jurassic World" (2015)
$228.7 million
Like "Furious 7," the dinosaur sci-fi adventure was produced by Legendary Entertainment, which was acquired by China's Dalian Wanda Group in January.
Universal
"Warcraft" (2016)
$220.8 million
Another Legendary film, this one inspired by a video game series, flopped in the U.S. but dominated the Chinese market, which is home to about half of the video game's players worldwide.
Universal
"Avatar" (2009)
$204.1 million
The worldwide smash hit also captivated Chinese audiences, even back in 2009, when the country's box office was a fraction of the size that it is today.
The prequel to this film, 2009's "Transformers: Revenge of the Fallen," made $65.8 million in China, setting the stage for "Dark of the Moon" to be the country's highest-grossing Hollywood film since "Avatar" at the time.
Paramount
"Kung Fu Panda 3" (2016)
$154.3 million
The Mandarin-language version of the movie starring Jack Black as a friendly fighting bear had the characters reanimated so their mouths moved naturally with the translated words.
DreamWorks
"The Jungle Book" (2016)
$150.1 million
The live-action/animation hybrid was a hit in several international markets, especially India, and it also played well throughout China.
Disney
"Mission: Impossible - Rogue Nation" (2015)
$135.7 million
China's Alibaba Pictures invested in "Rogue Nation," and star Tom Cruise visited several Chinese cities to promote the film, helping it open strong and stick around in theaters even though its China debut came more than a month after its U.S. premiere.
Paramount
"Star Wars: The Force Awakens" (2016)
$124.2 million
Despite China being one of the few markets that didn't catch "Star Wars" fever -- the movie put some people there to sleep -- Disney's promotional efforts helped it clear $100 million.
Lucasfilm
"Interstellar" (2014)
$122 million
The epic space adventure starring Matthew McConaughey, Anne Hathaway and Jessica Chastain connected with Chinese audiences, even though it wasn't in the 3D format that crowds there have grown used to.
Paramount
"The Hobbit: The Battle of the Five Armies" (2014)
$121.7 million
The third and final installment in Peter Jackson's "Hobbit" series was another movie that succeeded even though it was released in China well after its U.S. premiere.
Warner Bros.
"Iron Man 3" (2013)
$121.2 million
All three movies in the Robert Downey Jr. franchise have played in China, helping build brand awareness beyond just the bankable Marvel name.
Marvel
"X-Men: Apocalypse" (2016)
$12o.8 million
Disney bought Marvel Entertainment in 2009, but Fox acquired the film rights to Marvel's "X-Men" franchise before then. It doesn't seem to matter much in China, where anything Marvel often turns into a big hit.
Fox
"Captain America: The Winter Soldier" (2014)
$115.6 million
The predecessor to this year's "Civil War," "Winter Soldier" was a hit despite its fairly political content, which is usually a negative in Chinese theaters.
Marvel
"Terminator Genisys" (2015)
$113.2 million
The fifth "Terminator" film was the franchise's lowest-grossing since the 1984 original, but it was the first in the series to get a Chinese theatrical release.
Paramount
"Pacific Rim" (2013)
$111.9 million
The futuristic sci-fi adventure, in which humans battle sea monsters, is yet another fantasy action movie that Chinese audiences loved.
Warner Bros.
"Ant-Man" (2015)
$105.4 million
Yet another Marvel Cinematic Universe movie, "Ant-Man" made just $180.2 million at the domestic box office but was a much bigger hit in China.
Marvel
"San Andreas" (2015)
$103.2 million
China knows Dwayne Johnson from the "Fast and Furious" franchise, and the earthquake disaster film he headlined last year reverberated at the Chinese box office.
Warner Bros.
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Chinese moviegoers can’t get enough of America’s big-budget action flicks
Chinese moviegoers love to spend their hard-earned yuan on Hollywood blockbusters like "Captain America: Civil War," "Avatar" and "Star Wars: The Force Awakens." Comedies and dramas? Not so much. Read on to see which American hits have raked in the most money (according to BoxOfficeMojo) in that nation across the Pacific.