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Lack of Savvy Behind Cultural Trade Deficit

Each year hundreds of Chinese performing arts groups tour overseas. Their profits and influence, however, are dwarfed by those of foreign entertainers performing in China.

In 2004, Beijing sent 61 performing troupes abroad, while 83 foreign troupes performed here, "not a sharp contrast," says Zhang Xinjian, the deputy director of the culture marketing department of the Ministry of Culture.

But what is, says Zhang, is the average box office return for each Chinese overseas performance, currently around less than US$3,000, about a 10th of the takings of each foreign show in China.

And that figure does not include international superstars such as Placido Domingo, who was paid US$550,000 for the concert he gave in Beijing in May 2001.

Tan Lihua, the art supervisor with Beijing Symphony Orchestra, has been quoted as saying "The world's performing arts producers all know they can earn more in China than in other countries."

Conversely, China's rich cultural heritage does not necessarily translate into cultural products.

Since 1996, China's copyright imports have increased 57 per cent annually, compared with a sluggish increase rate for exports.

In 2003, the ratio of copyright imports and exports reached a record high of 10.3:1, the Yearbook of China's Publishing Industry 2004 reports.

China imported 12,516 copyrighted books in 2003, for example, while exporting just 81.

"China's foreign trade in culture is very weak," Zhang Yu, the general manager of China Arts and Entertainment Group (CAEG).

China is not sophisticated in developing and marketing its cultural products, said Zhang Xinjian.

"The market share of Chinese cultural products in the United States is close to zero," he said.

"Most exported Chinese TV plays are old fashioned and poorly packaged by international standards, which doom them to fail."

The China National Publication Import & Export Corp imported nearly 1.2 million audio and video products, almost the same number it exported.

The prices of the imports, however, are significantly higher than the exports.

"Most of our exported cultural products only target overseas Chinese consumers, making it impossible to realize large profits," said Zhang Xinjian.

"Cultural trade dominates today's international culture market. We have to adapt," he added.

To this end, the Ministry of Culture will encourage those companies engaged in the field to go abroad to boost their marketing know-how and participate in international events.

"The practice of performance groups only taking care of their performances and letting agents to do the marketing has proved successful," he said.

Sir Andrew Lloyd Webber's musicals Cats and Phantom of the Opera are prime examples of shows which have become hits worldwide and whose tours have been arranged by professional agents.

The House of Flying Daggers by domestic director Zhang Yimou set an exemplary model for Chinese cultural products to gain a foothold in international markets, remarked Zhang Xinjian. The film made US$12.5 million in the US and US$10 million in Japan.

CAEG, the largest performing arts and entertainment company in China, recently began international operations.

Its co-production of the stage musical Casablanca with US media giant Time Warner Inc had an enthusiastic audience response and high box office at its world premiere in Beijing a week ago.

(China Daily April 19, 2005)

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