China to unveil landmark Hollywood deal

Xi Jinping, China’s vice-president and heir-apparent, will endorse the growing ties between his country and Hollywood on Feb 17, when he is scheduled to unveil a joint venture between DreamWorks Animation (DWA) and two state-owned Chinese media groups.

Xi, who is due to visit Los Angeles on the final leg of his US visit, is set to announce the tie-up between Shanghai Media Group, China Media Capital and DWA, the studio behind the popular Shrek and Kung Fu Panda films, according to several people familiar with the situation. His itinerary could yet change, those people cautioned. But his participation in the most significant deal to involve a Hollywood studio in China underscores the mutually beneficial relationship that is evolving between media groups in the two countries. Under the terms of the joint venture, the companies will construct a studio facility in Shanghai with the aim of developing film, television and live stage productions for the fast-growing Chinese media market. DWA declined to comment; SMG and CMC could not be reached for comment.