Serious chemistry on set: the molecular structure of film investment in China

ABSTRACT

Using the case of the Mainland Chinese film industry, this paper argues that the competing features that attract commercial capital investment and drive state centralization create a molecular structure of national film investment, or the division of investment in the film industry into several interdependent centers. A combination of regulations, institutions, the built environment and access to capital leads to a distributed investment of strategic assets linked by bonds of complementarity. Beijing dominates in the area of state-supported production. Shanghai outperforms other cities in terms of foreign direct investment. Qingdao has attracted domestic Chinese private investment and entrepreneurship. Unlike the capital agglomeration seen in countries like the United States where film investment is driven centrally by financial considerations, the Chinese national film industry is strategically divided into several centers that rely more dominantly on political or financial resources. While this paper focuses on China, understanding the molecular structure of the Chinese film industry helps us understand both developed and developing countries that are characterized by robust state oversight and strong commercial media sectors.