China places restrictions on TV investment

investmentThe Chinese government has laid out new rules on overseas investments, which includes new restrictions on film and TV projects.

The government set out three new categories of investment, which included banned, restricted and encouraged investments, according to Bloomberg.

In a statement, the National Development and Reform Commission of China criticised “irrational” overseas investment in some sectors such as property, hotels, film and entertainment.

China’s outbound investment slumped 44% in the first seven months of 2017 from the previous year as the government begins to impose brakes on companies’ foreign acquisitions, Bloomberg reported.

“Profound changes are taking place in international and domestic situations, and Chinese enterprises face not just relatively good opportunities but also various risks and challenges in overseas investments,” the State Council, China’s cabinet, said in the statement.

This will mean that deals such as the US$3.5 billion exchange made when China’s Wanda Group acquired Legendary Entertainment will become less frequent.

The Chinese government has often placed restrictions on local TV firms and international companies aiming to build business in the territory. With laws regularly changing, TV executives have found China a different nut to crack.