Hollywood Road

"Good afternoon, viewers. This is a live broadcast from Shanghai International Film City brought to you by Sunshine Satellite TV."

Although the crowd in front of Shanghai International Film City today is nowhere near that of the opening of the film festival, it's still packed with people. Despite Murphy's modest fame, Superman is equally a big deal here, especially since Warner China has put significant effort and resources into the premiere.

The presence of Sunshine Satellite TV covering the premiere speaks volumes.

In front of Shanghai International Film City stands a huge statue of Superman, and across from it, numerous cameras are set up, with a female reporter from Sunshine Satellite TV standing among them.

"The 10th Shanghai International Film Festival is halfway through, and Shanghai welcomes another major Hollywood blockbuster tonight. Warner Bros. Pictures and DC Comics are premiering 'Superman: Man of Steel' in China. The beloved creators—director Murphy Stanton and lead actor Nicholas Cage—are here in Shanghai to promote the film. The area in front of Shanghai International Film City is crowded with media and fans, creating a vibrant atmosphere. Although it is hot and humid, with rain forecasted, it has yet to start, which seems to favor the premiere and its creators..."

Murphy and Gal Gadot walk down the red carpet together, attracting much attention from fans and the cameras, especially Gal Gadot in her purple evening gown, stunningly becoming the center of the red carpet ceremony.

However, all this seems trivial in front of Nicholas Cage.

As soon as Nicholas Cage makes his appearance, he ignites the enthusiasm of fans along the red carpet, meeting every fan's request for autographs, which keeps the media waiting at the end of the red carpet for nearly half an hour. Dressed in a suit, Cage stands tall and waves frequently to the media, displaying the demeanor of a Hollywood star.

In the interview area, many Chinese reporters surround Murphy, separating him from Gal Gadot and bombarding him with questions.

"Director Stanton," a female reporter asks in English, "is this your first time in China?"

"Yes, it's my first time here," Murphy replies in Chinese, surprising everyone. "Although I've only had a brief look around, I've already fallen in love with this beautiful and fashionable oriental metropolis."

The reporters are stunned, as no one expects a Hollywood director to speak such fluent Chinese.

"It's really unexpected!" the reporter from Sunshine Satellite TV switches to her native language, "Director Stanton, you can speak Chinese so fluently."

"I really like Chinese culture," Murphy casually replies, "so I've learned some."

The conversation about the Chinese language is just a minor part of the interview, and questions soon return to the film itself. Murphy answers each question from the Chinese reporters in detail, ending with, "I really like China, and I'm glad to be here in Shanghai."

After the customary group photo, Murphy and Gal Gadot enter Shanghai International Film City, where the head of Warner China introduces them to several top executives from the China Film Group. Murphy doesn't know anyone else, but he's somewhat familiar with the influential figures in the local film industry.

Unlike his approachable demeanor with fans and journalists, Murphy adopts a more formal attitude when meeting officials, as both parties are from completely different circles.

This is a typical diplomatic interaction. If Murphy thought speaking a bit of Chinese or being a Chinese-American director would make the China Film Group favor him, he'd be delusional.

People like these executives are very sharp.

As reported, Hollywood's elite tend to gravitate towards business, whereas in China, they often enter politics.

The person who has climbed to such heights in the film industry is definitely not a fool.

To be honest, as a Hollywood director, it's unlikely for Murphy to establish a close relationship with the China Film Group. Even if other companies in Hollywood trust the group, they might be exploited without realizing it.

Before coming here, Murphy had understood that although the major Hollywood studios are keen on the Chinese market and actively collaborate with the China Film Group, the relationship is fraught with escalating tensions that might reach national levels.

The conflict arises from interests.

According to reports from The Hollywood Reporter and other American media, the China Film Group has been "delaying" payments of box office shares to Hollywood studios since last year, demanding that they cover an additional 2% VAT due to policy changes in China. This demand has led to a collective boycott by the major studios, with many payments still pending.

The Motion Picture Association of America (MPAA) has asked the U.S. government to officially investigate, claiming that China may have violated WTO regulations.

Of course, reports from media like The Hollywood Reporter are biased towards Hollywood's interests, and the situation is more complex than depicted.

Nevertheless, it's undeniable that many Hollywood blockbusters released in China face issues with revenue sharing. The major Hollywood studios have united against the China Film Group.

Recent news indicates that the MPAA has intervened, asking the United States Trade Representative to investigate the alleged

 violations of WTO agreements by China. If proven, this could elevate the dispute to a higher level.

Some believe the dispute might be resolved this summer, while others are pessimistic.

Ultimately, this is a battle over interests, and such conflicts won't change due to individual differences. The China Film Group wouldn't make concessions to Hollywood just because a film's director is Ang Lee or another Chinese-American.

As for the individual, who believes they can alter international trade agreements?

Just like Warner Bros. continues to collaborate with the China Film Group, such commercial disputes must be resolved through negotiations. The major Hollywood studios are also in talks with the China Film Group, though progress is limited, especially since the local film market is still developing and many policies remain unclear.

According to Murphy, the biggest disagreement between the parties lies in the additional 2% VAT after the tax reform.

The Wall Street Journal previously reported that the major Hollywood studios refuse to cover this 2%, arguing that in other countries, VAT is deducted from the total box office revenue before splitting between the production companies and cinemas. The operation method of the China Film Group could cause them to lose tens of millions of dollars over the next few years.

Although there's a regulation regarding the transfer of movie copyrights, the definition of "movie copyright income" is vague, depending entirely on how the China Film Group operates. If by conventional understanding, selling copyrights outright to the China Film Group counts as transferring copyrights, what about distribution? Does licensing count as transferring copyrights?

The policies do not provide clear definitions, thus leaving room for ambiguity.

Another point of contention for Hollywood companies is that domestic film production companies collaborating with the China Film Group are not required to pay the additional 2% tax.

So, Murphy agrees with a Chinese film industry expert who said, "Due to the lack of clear regulations, how much tax foreign film distributors need to pay depends on their negotiating skills with the China Film Group."

Never underestimate capital's pursuit of profit, even when it comes from the national level.

Fortunately, Murphy is unlikely to deal directly with the China Film Group in the future. His Stanton Studio doesn't have the capacity to be involved in these complications.

When the time comes, Murphy invites everyone to enter the cinema.

Before the screening, there's a brief ceremony. Having signed the contract, Murphy strictly follows the procedures set by Warner Bros.

In addition to the three key creators of the crew, Warner China has also invited some Chinese movie stars to support the event. One handsome male actor lists the "seven ultimates" of "Superman: Man of Steel" before the screening!

The First Ultimate: "The Most Handsome and Stylish"; The Second Ultimate: "The Most Sinister Villain"; The Third Ultimate: "The Most Luxurious Cast"; The Fourth Ultimate: "The Most Heart-Wrenching Plot"; The Fifth Ultimate: "The Most Explosive Visuals"; The Sixth Ultimate: "The Most Cooling Energy"; The Seventh Ultimate: "The Most Superman."

As for the dark, serious, heavy, and deep aspects praised by the media and fans in North America and Europe, these are not even mentioned here. Warner clearly understands the local market conditions—these are not selling points.

Not mentioning them doesn't mean they don't exist. "Man of Steel" bears the deep imprint of Murphy's style, and even several major edits cannot change this.

Thus, it can be anticipated that after its release, "Man of Steel" will receive a lukewarm response in the Chinese market.

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