China Film Group payment impasse resolved ?
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Screen Daily reports today that “the stand-off over outstanding payments owed to Hollywood studios by China appears to nearing resolution in light of comments made by MPAA head Chris Dodd.
Hollywood studios said they have not been paid a share of box office by Chinese officials since last autumn, a figure according to some reports that could be anywhere between $150m-$200m.
Chinese authorities held off because they wanted the US studios to pay a 2% levy, however MPAA chairman and CEO Dodd’s statement signalled an end to the face-off.
“The MPAA understands that the China Film Group stopped payments owed to MPAA studios in China pending resolution of the application of a new value-added tax due to be implemented nationwide as of Aug 1,” said Dodd.
“We are pleased to hear that the Chinese government has addressed the matter and all money due will be paid in full. It is our understanding that the payment process has recommenced.”
“The US and Chinese film industries enjoy a close and productive relationship and the MPAA is grateful to our counterpart, the State Administration Of Press, Publication, Radio, Film And Television for their commitment in resolving this matter favourably.
“We look forward to further strengthening our ties with SAPPRFT as the Chinese screen community continues its path to becoming a global powerhouse in the international entertainment market.””
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