Client Advisory

Foreign film producers in China: an FCPA drama waiting to unfold?

Stroz Friedberg is a specialized risk management firm built to help clients solve the complex challenges prevalent in today’s digital, connected, and regulated business world

Intergalactic robots intent on wanton destruction have a new target of choice. No longer are their laser beams trained on the Statue of Liberty, the Empire State Building or the White House; today’s discerning extraterrestrial invaders are looking further afield, to the likes of the Great Wall and Hong Kong’s skyscrapers. Why? Because Hollywood can hear the sound of Chinese cinema ticket registers ringing, and in order to gain a foothold in a market set to topple the US as the biggest in the world by the end of the decade, the action on-screen needs to cater to an increasingly global audience.

However, foreign film producers and studios face a number of challenges to ensure compliance with the equally far-reaching Foreign Corrupt Practices Act (FCPA). Some US studios’ activities have already drawn the attention of the Department of Justice (DOJ), and with both US and European businesses being targeted by increasingly confident and inquisitive regulators, aggressive forays into China have the potential to result in what Hollywood dislikes the most: an unhappy ending. Download our full advisory now.



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