REVEALED: Hollywood Fears Trump Will Stop Chinese Communist Buying Spree...
Beijing begins monitoring "irrational" investments in entertainment companies (even while Alibaba pledges $7.2 billion) as one deal falls apart and all eyes focus on Trump.
Chinese companies poured record amounts of capital into Hollywood in 2016 — a trend eagerly embraced by the U.S. film industry. Among the deals: Dalian Wanda Group acquired Legendary Entertainment for $3.5 billion and Dick Clark Productions for $1 billion; Alibaba made a major investment in Steven Spielberg's Amblin Entertainment; and Beijing-based Perfect World Pictures put $500 million into 50 films from Universal.
But tighter regulatory scrutiny and rising protectionism in the U.S. and China now have the industry questioning whether the deal flow could dry up in 2017. Already, there have been casualties.