P. John Burke Quoted in The Wrap on Chinese Crackdown on Hollywood Deals
The Wrap has quoted P. John Burke, head of the entertainment practice at Akin Gump, in the article “What China’s Latest Crackdown Means for Hollywood,” regarding an announcement by Chinese regulators restricting investment in film, entertainment, sports and hotels.
The move, as the article notes, formalizes a policy that has already limited Chinese money flowing into Hollywood over the past couple years. But co-financing arrangements between Hollywood and Chinese companies may also be at risk. Burke, who has worked with Chinese partners on several recent deals that have all failed to get government approval, said the announcement only validates the increasingly pessimistic climate surrounding Hollywood deals involving Chinese partners.
“What [China’s] been telling us for the last six months is that entertainment deals can get approved if they satisfy certain requirements,” Burke said. “Yet we haven’t seen any entertainment deals actually get approved. Maybe they weren’t saying what they really mean. And now we know that’s actually the way we were heading.”
Burke added, “I think this is a total shutdown. Until this actual announcement came out, people were still hopeful. Maybe not optimistic, but hopeful that some companies could still get investments approved. But now…” He pointed out that the announcement “codifies” the pessimism that has already been hanging over the market.