Chinese riddle.

Archer Entertainment Media Communications's Asian initiative is a puzzle inside an enigma wrapped in a fortune cookie.

The Los Angeles-based start-up and Pink Sheet issue, which has never produced, distributed or exhibited film or TV programming, has announced it has an iron-clad, 30-year contract with China to upgrade more than 100,000 theaters for digital use. The venture also claims to have rights to build malls, theaters and Web sites in China and India.

Archer chairman Michael Selsman says China was eager to make the deal because the country wants to combat piracy, a growing worldwide problem. "When China joined the World Trade Organization (two years ago), they made piracy a priority," he said.

Selsman said the company, which is listed on the Pink Sheets, raised $15 million and was given an additional $25 million by the Chinese to launch. Archer, in turn, forged deals with China Film Group, the largest and most influential state-run film enterprise in China and Prestige Asia for public relations.

China, with a population of 1.3 billion, is an attractive target for media firms but one of the toughest markets to crack. News Corp.'s Rupert Murdoch and Viacom Inc.'s Sumner Redstone have been attempting for years to bring media to billions of Chinese viewers. Concerned about Western influence and economic inroads, Chinese laws are strict about how many foreign films are allowed into the country for distribution. This year China banned "The Da Vinci Code," for example.

Selsman maintains that the reason Archer has the inside track with the Chinese government stems from "high-level contacts in China," but he refuses to identify any of them. "At this point, I can't mention any names," he said.

The only name that does surface is current board member and former tennis star Vijay Armitraj, who apparently is on track to become co-chairman with Selsman.

Staff reporter Joel Russell can be reached at [phone], ext. 237, or at [e-mail]. Staff reporter Dan Cox contributed to this column.