Great article in The Hollywood Reporter. The article is by Michael Wolff and it is entitled, Hollywood’s Disappearing Chinese Money. But it is about a lot more than just Hollywood-China deals. It is really about all China deals.
This article does as good a job as I have ever seen in describing how eager American companies are to “do deals” with Chinese companies and how that eagerness to a large extent blinds them to the fact that the deal they think is going to happen will not.
Whenever a company calls one of our China lawyers to draft a contract for a deal, we always suggest that before they incur attorneys’ fees, they make certain that they really do have a deal. About 50 percent of the time they come back to us a few days later to tell us that it turns out they are still negotiating. Whether it be because of cultural differences of miscommunication, we have found that there is too often a disconnect between the American side and the Chinese side when it comes to getting a deal done.
For more on this sort of deal disconnect, check out