Disney aims to breach wall around China.Even as relations between the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and China get worse, the Magic Kingdom is intensifying its efforts to do more business in the Middle Kingdom. Last week, the government of Hong Kong The Government of the Hong Kong Special Administrative Region of the People's Republic of China (Traditional Chinese: 中華人民共和國香港特別行政區政府 announced that it was engaged in talks with Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co. concerning the building of a major theme park near the city. Disney analysts and China watchers say that in some ways, the Burbank-based entertainment giant's timing could not be better. "Property prices in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. have fallen so much that (developing a park) would cost a whole lot less now than it would have two years ago," said Greg Fager, director of the Asian department at the Institute of International Finance in Washington. Beijing, meanwhile, looks ready to give Disney a second chance after having shut the company's films out of the Chinese market for nearly two years. That unofficial ban followed a string of Disney movies that were deemed anti-Chinese, such as "Seven Years in Tibet" and "Kundun." Beijing is now looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. Disney to be more politically sensitive, said Thomas Leong, who represents the China Co-Production Corp., a government-backed agency that overseas all co-productions between Chinese and foreign film production companies.
Magic Kingdoms
Walt Disney Co.'s theme parks, seven of which are among the top 10
parks in the world in terms of attendance.
Park, Location Year 1998 attend.
opened (millions)
Tokyo Disneyland, Japan 1983 16.7
Magic Kingdom, Orlando, Fla. 1970 15.6
Disneyland, Anaheim 1955 13.7
Disneyland Paris, France 1992 12.5
Epcot, Orlando, Fla. 1982 10.6
Disney-MGM Studios, Orlando, Fla. 1989 9.5
Disney's Animal Kingdom, Orlando 1998 6.0
Blizzard Beach, Orlando, Fla. 1995 1.3
Typhoon Lagoon, Orlando, Fla. 1989 1.1
Tokyo Disney Sea, Japan Due 2001 NA
NA - Not applicable Sources: Amusement Business and Walt Disney Co.
"I see a very bright future for Disney in China as long as they learn from their experience and they do things the way they are done in China, rather than trying to force the American way The American way of life is an expression that refers to the "life style" of people living in the United States of America. It is an example of a behavioral modality, developed from the 17th century until today. onto the Chinese," he said. Beijing's acquiescence is driven by economic reality. With Hong Kong in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a serious recession, which has also caused economic difficulties on the mainland, Chinese officials are more than happy to welcome a major investment. Those economic concerns should easily override any political animosity between China and Washington, analysts say. "China wants to show that the idea of 'One Country, Two Systems' works," said Alex Pan, who runs the China practice for PriceWaterhouseCoopers LLP LLP - Lower Layer Protocol in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. . "Following the Hong Kong economic crisis, Beijing wants to support anything that will help Hong Kong to help itself." From Disney's perspective, Hong Kong is a near-ideal location for the company's first theme park in China, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. analysts. (Disney officials declined to comment for this story, citing ongoing negotiations with Chinese officials.) A Hong Kong theme park would give Disney a chance to tap the Chinese market without the risks of attempting to build a park in China proper. Under the "One Country, Two Systems" policy set up after Britain returned sovereignty of Hong Kong to China in 1997, the city has been allowed to maintain its own political, legal and business system. As a result, Disney would find building a park there far simpler than in a mainland city such as Shanghai or Beijing. Building codes in Hong Kong meet U.S. standards. Much of the labor force is bilingual. Import tariffs are low, so the company would have little problem bringing in the needed materials. And by building in Hong Kong, Disney would avoid local politics that have been troublesome for many foreign companies attempting to set up shop in China. "It would be much harder for Disney to work through the levels of government and regulations you find on the mainland," said Alan Fenning, an attorney specializing in project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. in Asia with Milbank, Tweed, Hadley & McCloy in Los Angeles. "When you have local, provincial and state regulations to deal with, it's sometimes hard to figure out what level you are supposed to be dealing with at any given time." Hong Kong is also favored because it is more cosmopolitan than China or most any other Asian nation. The cosmopolitan nature means a steady flow of international tourists. "A theme park in Hong Kong would give Disney the best of both worlds," said Fager. "They can get good business from the Hong Kong people The following is an alphabetical list of people from Hong Kong.
A
Disney's past model for building theme parks overseas has been to work closely with a local partner, which finances the construction and then handles management after the park is completed. In Hong Kong, two firms, Cheung Kong Holdings Ltd. and Sun Hung Kai Sun Hung Kai Properties Ltd. (新鴻基) (HKSE: 0086 ) is a listed corporation based in Hong Kong. The company is controlled by the 3 Kwok brothers, whose father, Kwok Tak Seng, founded the company. Collectively, they speak for 43. & Co. are reportedly vying to develop a partnership with Disney, Unlike many mainland Chinese companies, both Cheung Kong and Sun Hung Kai are considered financially strong and have years of experience in building and operating major office, retail and housing developments. Eventually, Disney will likely push for a park in China proper. "Disney sees China as a huge market that they have to be a part of," said Tom Wolzien. an analyst at Sanford C. Bernstein in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . "The fact that 'Mulan' was a Chinese folk tale was no accident." |
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