Before the WTO accession negotiations are completed, it is essential that the USG secure a commitment from China to relax restrictions on import of foreign films under revenue sharing 2 conditions in a modest way. MPA's main goal in the accession negotiations is to secure a gradual increase in the number of films. China has made useful commitments in the WTO accession negotiations to allow foreign investment in joint ventures to build, own, operate, and manage cinemas. This could help build up the infrastructure and expand the total market for motion pictures in China - for US films, as well as Chinese films. At present, foreigners are not permitted to own or operate cinemas in China.
China remains one of the more under-screened markets in the world.
There are about 3000 cinemas exclusively dedicated to exhibition of motion pictures. The ratio of screens per person is only 1 screen per 122,000. This compares to a total of 30,825 screens in the United States and a ratio of screens per person of 1 per 8,600 people. However, the value of this commitment is limited, at present, by the restrictions on access for foreign films. Without knowing that more foreign films will be available to fill all the new screens, investors are unlikely to be interested in building new cinemas in China.