American Dreams in China tells an inspirational story about how three college chums build a business empire by teaching English.

“Big box office gains are the main goal of China’s film industry. It is still working on building a complete industrial chain,” said Jiao Hongfen, vice president and general manager of China Film Group Corporation (CFGC).

Upon establishment of the PRC, the government allocated funds for all films. The predecessor to CFGC was in charge of distributing and releasing them. Under the planned economy, profits were not the main goal of film studios because they could survive without high box office revenues. But this meant they had no money for reproduction. To make more films, they had to raise funds themselves, which was a risky business. They hence did their utmost to limit production costs. Trapped in this vicious cycle, Chinese filmmakers were constrained by tight budgets, which made blockbusters out of the question. Studios carried on this way for 40 years till January 1, 1993. They were then transformed into shareholding companies responsible for their own finances and free to negotiate with local distributors nationwide on profit-sharing terms. They thus made their way into the market.

In the past, the moment a studio delivered a finished movie would receive a RMB one million advance. Today, capital can be recovered only after regional copyrights or copies have been bought out. Deprived of their monopoly, state-owned film studios must compete in an equalized environment with regards to capital. No matter whether it comes from the government, or from private or even overseas investors, each expects a finger in the pie.

Give the Market What It Wants

The comedy movie Lost in Thailand, produced by Enlight Media subsidiary Beijing Enlight Pictures, grossed RMB 1.26 billion at the box office last year. It was the bestselling Chinese-language film.

Cineastes believe that its and other Chinese films’ success is due to their relevance to real life, so striking a chord with audiences. They touch on social issues of wide appeal and are irresistibly funny, abiding by the rules of commerce. “Having always wanted to make a comedy film, I followed the rules of this genre to the letter,” director and one of the leading actors of Lost in Thailand Xu Zheng said. “I made sure potential audiences knew exactly what kind of film it was. If they wanted to be cheered up, they would go to see it.”