Chinese Cartoons: You Want Government With That?
A few months ago I did a post, entitled, "Chinese Government Says: Innovate," discussing how China still believes innovation can come from the top down and why this is not likely to happen. The always excellent (but too sporadic) Silicon Hutong blog, just did a great post, entitled, "Who Banned Roger Rabbit?" on how this applies to China's animation industry.
Seems the Chinese government is doing just about everything it can to spur innovation in the Chinese cartoon industry, but none of it is working. As Silicon Hutong so succinctly puts it, if it "sucks," kids will not watch it. Would any parent dispute this?
The Silicon Hutong's article was spurred by a recent notice issued to television stations by the State Administration for Radio, Film, and Television (SARFT) prohibiting foreign cartoons during prime time. According to the post, this is just SARFT's "attempt to buoy China's own struggling animation industry, an effort that in the past has seen the regulator:"
- Require all foreign animated programs to receive SARFT approval prior to broadcast;
- Compel TV stations to use local animation for at least 40% of their animated fare; and
- Build 15 animation incubators around the country.
Produced in large quantities, domestic cartoons are sometimes sold at less than 1 per cent of their cost, according to Xinhua News Agency. Many local television stations are only willing to pay around 10 yuan (US $1.25) per minute for domestic animation, while buying foreign animations, like Japan's "Slam Dunk," for as much as 5,000 yuan (US $625) per minute, said the Xinhua report.
Domestic animations have to first of all become interesting if they are to be popular, according to Yang Yunxia, a Beijing fashion analyst with a four-year-old daughter. "Children are not going to fall in love with something simply because they have no other options," she said.
Or, as Silicon Hutong puts it, "Right. Let's cut to the chase: most Chinese animated content sucks to the point that even kids won't watch it."
According to the Silicon Hutong, these efforts have led to a lot more animation, but not better animation. It then notes that even the China Daily hints at the real problem:
The post then beautifully contrasts the role of government and the role of the private sector in driving innovation and quality:
All of that government-driven effort, and all it has done is manage to crank out larger and larger quantities of dreck. It reminds me of looking out the back window in a friend's apartment in Guangzhou in the early 1990s and seeing a field filled with Peugeot cars nobody wanted to buy. Or of driving past empty lots in Liaoning filled with steel beams of such abysmal quality that the mills couldn't give them away.
Fast forward, and we're now at a point where that same factory in Guangzhou is turning out Honda Accords that are rated higher in quality than the Accords coming out of Honda's plant in Japan (I know - I own one) and China's steel industry is turning out steel of sufficient quality to be used in automobile panels.
This didn't happen because of government sponsored programs any more than China's animation industry will be saved by neo-protectionism and subsidies.
The Silicon Hutong proposes that if the Chinese government were really interested in improving Chinese animation, it would bring in foreign investment and expertise. Funny, I just did a post, entitled, "China Policy -- Let Mikey (Foreigners) Do It" on how this is exactly what the Chinese government is doing for State Owned Entities (SOEs) and its banking sector. No reason to think this would not be a good idea for animation as well.
The post goes so far as to say that SARFT's policy is driving kids away from television, probably permanently, and asks "how long is the Party prepared to countenance an industrial policy that weakens the very industry it is supposed to strengthen and at the same time loosens the Party's grip on the nation?"

Comments (18)
Read through and enter the discussion by using the form at the endIP Dragon - August 15, 2006 10:47 AM
This protectionism, whether it is in the animation, TV or movie industry, will spur copyright piracy and keeps the quality artificially low in the country. See more here:
Cheers,
IP Dragon
Howard Lee Harkness - August 15, 2006 11:44 AM
Anything that drives children away from TV can't be *all* bad.
NYU08 - August 15, 2006 8:11 PM
Hello there, I've been introduced to this wonderful blog by a friend/fellow intern of mine in Shanghai a few weeks ago; however, this is my first time posting a comment as I found this blog particularly interesting so please bear with my possible amateurish rambling (though I do hope to develop in the legal field as a future profession).
I am an avid cartoon fan (yes, I'm a bit old for it, I know), especially Japanese animation as their animation style, plot, character development and dialogue can be extremely entertaining (no, I do not consider Pokemon top notch animation, though I know I will break the hearts of many young children); unfortunately, I am currently in Shanghai and I fell victim to the horrendous quality of Chinese animation. Many primetime domestic cartoons that actually show some resemblance of attractive entertainment were those made in the early 90's or older while the more modern CGI animation lack any sense of direction or entertainment value.
Why then, does the government insist on producing domestic cartoons? From the perspective of a college student who experienced childhood in Shanghai, my experience is that it helps the government maintain political stability and hold over the newer generation in what few ways it can (as China opens up wider to the influx of foreign ideas, fashion, entertainment, etc.). In Chinese cartoons such as Gourd Child (Hu Lu Wa), it illustrates and exemplifies the unity between the 7 children (each with their own unique powers) to fight evil (represented symbolically as a female Gorgon and a burly masucline crabman) and protect the peasantry, especially their foster parents, an old couple. The symbolism here are manifold, stretching from morality to righteousness and beyond. By instilling such thoughts that subtly hint towards communist unity, the government could maintain its education of the younger generations not only in school but out of school.
In terms of newer animation, either animations with similar plot and develop are made with CGI (though admittedly I'd say the hand-drawn or paper cut characters of old prove to be of much better craftsmanship) are made, or the plot of the cartoons are extremely romantic to the point even romantic Chinese girls who strive off Korean soap-operas and drama do not believe those cartoons could possibly have a scent of reality in them.
Such domestic animation, though horrible, unattractive, and unpopular still remain on Chinese TVs whereas the more popular and generally better Japanese animation are not also can be attributed to the content of the latter cartoon. Japanese cartoons have a variety of different subjects, ranging from fantasy to sports to mystery, etc. Though usually the most popular ones tend to contain subtle or blatant representations of violence and gore (e.g. Fist of the North Star), which is something the Chinese government worries as it could possibly cause social unrest among younger generations. Also, in the cases of some Japanese animation, political views are expressed, which often times (from my experience) emphasize political freedom and individuality, topics that strongly conflict with the interest of the Communist party.
Though I'm sure there are many more reasons to why the Communist party would sacrifice the economic growth it eagerly desires to push forth an ailing domestic industry, and I'm sure (and definitely hope) Chinese media would accept the help of the foreign animation industry to bolster and improve its own, the above are some reasons I thought might help shed light on this topic.
Sincerely,
NYU08
Lonnie - August 15, 2006 9:08 PM
Great post and right on the mark. And thanks for the lead on Silicon Hutong!
Made in China - August 16, 2006 3:38 AM
Agree with Howard Lee Harkness on the point. laughs...
Personally I think TV is good for killing time but never so good for enrichment, particular for kids. kids hardly have any self-control. Think of the long hours we spent before TV when we were kids...
The post is great in pointing out government's efforts in encouraging a top-down innovation have been vain. I think so too.
China Law Blog - August 17, 2006 1:09 PM
IP Dragon --
Thanks for checking in.
I agree this sort of protectionism is bad for quality and I guess it encourages piracy to the extent that some people will pirate foreign cartoons who otherwise would not were it actually on TV.
China Law Blog - August 17, 2006 1:11 PM
Mr. Harkness --
Thanks for checking in. "Television made me what I am. We are just good friends. Television man."
Television is not all bad. Cartoons are not all bad. Bad cartoons are all bad.
China Law Blog - August 17, 2006 1:17 PM
NY08 --
Thanks for checking in. We are all amateurs, so worry not. In fact, you certainly know cartoons better than I do and so I appreciate your input. I also find your explanation for why the Chinese government wants to control cartoons quite interesting and believable. But how much influence can cartoons have that nobody ever watches. Reminds me a bit of the Christian animation that was on TV when I was a kid. Even my most devout friends admitted it was unwatchable.
China Law Blog - August 17, 2006 1:18 PM
Lonnie (OMB) --
Thanks for checking in.
You are welcome.
China Law Blog - August 17, 2006 1:19 PM
Made in China --
Thanks for checking in. Too much TV is bad. A bit of TV though is entertainment and can be effective at teaching kids various things, including, humor. You watched TV as a kid and I'm betting you are just fine.
Muskie - August 17, 2006 2:37 PM
Chinese animation particularly digital animation was a source of considerable discussion at Multi-Media Entertainment China conference which I attended and blogged about.
Besides Pixar who delivered one of the keynotes, there were several Chinese animation studios and tool vendors that presented. They were also using animation for things besides cartoons, such as historical architecture reconstructions and for promotional purposes.
With the labour cost advantage I guess it is hoped China will become a center of excellence for digital animation like Vancouver or South Korea (traditional animation outsourcing more so) and of course Japan. On CCTV perhaps I watched how a lot of the big Chinese language blockbusters are doing the digital special effects in China and they have gotten really sophisticated too.
Day One:
http://blog.muschamp.ca/2005/12/19/mmec-2005-day-one/
Day Two:
http://blog.muschamp.ca/2005/12/20/mmec-2005-day-two/
Day two might have more about digital animationa and I could have blogged more about I guess plus you can't see all the demo reels. I have pages of notes I took in MS Word...
China Law Blog - August 17, 2006 10:35 PM
Muskie --
Thanks for checking in. I have been told that North Korea (yes, North) is an outsourcing center for animation.
David Li - August 22, 2006 9:00 PM
I have just received a copy of policy on stimulating animation industry issued by State Council in July. The policy is similar to the old policy encouraging manufacturing with tax incentive and preferential treatment for domestic production such as the banning of foreigner cartoons by SARFT. However, this is not likely to work. However, Chinese government isn't the only one foolish enough to think a government policy could encourage a creative industry like animation. Richard Florida's "The Rise of Creative Class" (see http://www.creativeclass.org ) has documented the attempt of state governments in the US trying to build creative industry using similar policy. Unlike manufacturing, creative industrials doesn't benefit much from what the government can offer: cheap lands and tax incentive since they don't make that much money and utilize few spaces. Cheap labors doesn't help either. The productivity difference between individuals can be tens even hundreds folds while the salary difference doesn't vary as much.
Instead of criticize Chinese government's attempt, let's try to see what kind of policy has worked in boosting creative industry in the past. Vancouver has been shooting location of choices of Hollywood for years. X-Files was almost totally shoot in Vancouver but the creative parts were still totally decided in Hollywood. New Orleans is now front running in becoming shooting locations however, they still don't move the creative talents to relocate there. South Korea has been destination of outsourcing for animation from US (The Simpsons) and Japan. Shanghai is taking over as the favorite destination for Japanese animation outsourcing but a lot of 2D outsourcing firms have been relocating to Wuxi, Hangzhou and Suzhou because of the increasing labor cost in Shanghai.
However, with all the attraction to these new location, when was the last TV out of Vancouver makes it big time? Is there any famous cartoon character out of Korea today? Creative industry can't be created with government policy but the creative class emerge from the rich environment. Richard Florida has made an interesting point on the positive correlations between gay index and creative industry in an area showing how a rich culture environment can help to boost the industry.
Shanghai is likely to become a global creative center to emerge in the future and won't owe its success to the government policy but the perfect of triangle of being a commercial, cultural and financial. The historical image of the Oriental Pearl goes a long way for Shanghai to attract creative talents both domestic and foreigners. Famed game designer American McGee has just open a shop in Shanghai (see http://pc.ign.com/articles/724/724571p1.html ).
It's very easy to criticize how a government policy to fail boosting a creative industry because so many governments has tried and none has successfully create a Silicon Valley or a Hollywood.
JW - August 27, 2006 8:38 PM
Hope somebody can help on this matter. What is the exact definition of a domestic animation product/series in China? Thanks.
China Law Blog - August 27, 2006 8:52 PM
Mr. Li --
Thanks for checking in and thanks for mentioning "The Rise of Creative Class." I have not read that book, but I have read a couple of articles about it and I tend to agree with Mr. Florida's main premise, which is that creative people want to be in nice places with other creative people.
I also think you are right to pick Shanghai as the likeliest place in China to lead in its creative culture. I do not know Beijing nearly as well as I know China, but I would think Beijing also is a possibility. I agree with you on Shanghai, however, because Shanghai has an historical reputation for being one of China's most open cities and I believe that is still true today.
China Law Blog - August 27, 2006 8:53 PM
JW --
Thanks for checking in. I am going to go out on a limb here and say a domestic series is one where the bulk of the production and creative team are from China. That's my off the cuff definition, but I definitely am open to others.
David Li - August 28, 2006 7:16 AM
The definition of "domestic" is ambiguous. You need at least a Chinese partner involved and certain amount of titles goes to Chinese nationals (directors, producers, art and etc). On the boarder line of the definition is so called joint venture production partnering a domestic firm with foreigner firm and the production is treated as "domestic." Some firms in Shenzhen has taken this definition very far by turing the outsourcing production order into joint venture. The foreigner owns copyrights as well as global distribution right. The Chinese party ends up with only distribution right in China. Such animation is categorized under joint venture and treated as domestic.
Domestic animation enjoy the following benefit:
1. Script approval. The domestic animations only need to submit the script for approval while imported ones have to present the finished products.
2. Broadcast right. There is a annual quota of 10 imported animations series for TV broadcast. The approval/censor process is tedious. Takes between 12 to 18 months between submitting and a yes and no answer. The animation series have to be fully dubbed in Chinese and subtitled before the submission. Until a license is granted, no negotiation with TV stations can take place. There is no such restriction on the domestic film.
3. As just announced, the prime time TV (5 ~ 8 PM) are reserved for only domestic films.
Hmm... This may be a good area for foreigner lawyers to start get involved. Outsourcing animation production to China is going to rise and the average production cost of a 52 episodes 22 minutes series is around USD$1 ~ 2 millions in China. On comparison, for Japanese animations, the cost is about USD$8 millions for the same series and similar in the US. The JV structure can be used to save cost by gaining entry into the Chinese market. Some Shenzhen animation firms as well as some Shanghai firms are using JV as part of their package in outsourcing. However, the deals are rare as it's hard to establish trust and proper protection between the foreigner and Chinese partners.
China Law Blog - August 29, 2006 12:08 AM
Mr. Li --
I think I misunderstood the question, but in hindsight I see where I should not have. I did not realize you were requesting a legal definition. I like your definition much better.