China owes Hollywood millions after halting payment for films
LOS ANGELES, California (AFP) - China has stopped paying Hollywood studios for its films in a dispute over a Chinese tax on movie profits, Hollywood trade papers reported on Tuesday.
Tens of millions of dollars in box office revenues are owed in arrears to the likes of Disney, Warner, Universal, Paramount, Fox and Sony, according to The Hollywood Reporter.
The magazine said China's state-owned movie distributor, China Film Group, owes more than US$31 million to Warner for Man Of Steel, US$23 million to Sony for Skyfall and US$23 million to Fox for Life Of Pi.
China stopped payment at the beginning of the year, when American studios took issue with a two per cent value-added tax that the world's most populous nation was levying on United States (US) films.