At a time when all countries are paying attention to the development of their soft power, the film industry is regarded as an important cultural force.
A successful film can have a worldwide impact, and even shape the image of a country. With this in mind, the Chinese government has put forward the goal of "going out" for Chinese film industry.
To achieve this, besides strengthening the film industry itself, the government needs to provide appropriate support. Film production and distribution is an industry with high investment and high risks. The ability to gain sufficient funds will determine the fate of a film project and the prosperity of the film market. In this respect, China can learn from the tactics the US government uses to support Hollywood. History shows that even Hollywood would not be so powerful without the US government's support during its global expansion process.
In the United States, since the 1980s, most of the film projects are planned and produced by independent film companies, which usually pre-sell a film's distribution rights to overseas distribution corporations, and then use these distribution agreements as collateral for acquiring loans form financial institutions. But financial institutions usually are reluctant to advance funding predicated on distribution agreements, especially those signed in Asia or Latin America, partly due to concerns about regional economic crises and political risks there, which might generate defaults.
To solve this problem, in 2000 the Export-Import Bank of the United States put forward a Film Production Guarantee Program to provide guarantees to bank loans for independent film projects, accounting for 60 to 90 percent of the loan amount.
The US Small Business Administration also launched a support program to help fund independent films. Guarantees from government agencies enhanced the confidence of the financial sector in the development of the independent film industry, thus contributing to the prosperity of the film industry.
In China, with the encouragement of the government, the Bank of Beijing, China Merchants Bank, Minsheng Bank and other financial institutions began to provide loans for film projects. But in consideration of potential risks, banks usually choose to fund blockbusters, such as Assembly, Thirteen Beauties and Flying Swords of Dragon Gate, while small and medium-sized film projects and small film companies, even those with great potential, find it difficult to obtain loans.
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