Studios only reap about 25% of ticket sales there — less if the films are not co-productions — and no ancillaries, but China can still provide a major boost to the global bottom line on a movie like Transformers: Age Of Extinction. Those high stakes, coupled with the uncertainty of mixing Hollywood capitalism in a bureaucracy controlled by a communist government, means that U.S. studios and other companies doing movie business in this fast-growing region find themselves tip-toeing around,  trying not offend the wrong person.

ganisPangu Investments and Paramount have resolved the accusation that the studio breached its promise to feature the distinctive Pangu Plaza in the Transformers film, in the wake of Pangu ‘s attempt to delay the film’s June 27 opening in China. That hasn’t stopped Jiaflix — the company hatched by former AMPAS head Sid Ganis, Kenneth Huang and Marc Ganis to facilitate the production and distribution of films in China — from standing up for itself after taking some of the shrapnel from the Transformers dispute.

In a release issued from Beijing, Ganis and his partners excoriate Pangu for essentially creating an international situation to strengthen its financial position while dragging Jiaflix through the mud in the process. “Through a major campaign to the media in China and in the United States, Pangu has falsely stated that an entity called Jiafu China Ltd is a part of or affiliated with Jiaflix Enterprises LLC, the US based company that has participated in the production of the picture since April, 2013. This is completely false…We do not understand why Pangu, which is presented in an extraordinary manner to the world in Michael Bay’s Transformers 4, would make such inaccurate assertions. Perhaps the answer is found in a court filing yesterday in which Pangu demanded $1.8 million and, if successful, would result in Pangu receiving all of the benefits and placements in the film for free,” the statement says. (Full statement appears below). (more…)