Entertainment giant Time Warner Inc., which opened its first joint venture cinema in China four years ago, has decided to pull out of the business after Beijing tightened restrictions on foreign investors.

Warner Brothers International cinemas operates six cinemas with local partners and had planned to expand that to about 30, encouraged by a 2003 policy letting foreign investors hold up to 75 percent of cinema ventures in selected cities.

But a new policy announced by Beijing last year requires foreigners to give control to Chinese partners, and Time Warner has been unable to negotiate a compromise

Time Warner was one of the few big foreign companies to invest in China's cinema industry, where ticket sales climbed 30 percent to 2 billion Yuan (US$254 million) last year.

The US company is seeking buyers for its stakes in three Chinese joint ventures and has received several bids, including one from an existing partner, Shanghai Film Group, a source familiar with the situation said.

Shanghai Film owns 51 percent of Time Warner's first Chinese cinema, Yonghua Film Center in the city's upscale Xujiahui area.

Warner Brothers remains committed to its other businesses in China, including local language film production, a home video joint venture and consumer products.

Source:佚名