“The Chinese government … gets a really substantial increase in influence over the type of content that’s distributed. But also, Chinese companies have been looking to diversify their investments.”

Still, it remains to be seen whether China’s influence over Hollywood will continue to expand, Kokas says.

“If the Chinese market doesn’t grow as rapidly as planned — if the three-to-four-per cent growth of 2016 continues — this will be potentially less of a concern for Hollywood studios as they look to other growing markets, like Southeast Asia [and] India.”

“That being said, if we see another substantial uptick in the Chinese box office, I think a lot of studios will be rethinking their strategies for how they deal with the Chinese government.”

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