The Chinese film industry experienced more than twenty years of reform that has brought undeniable success, however, it has been confronted by a dilemma in the context of globalization: The “coming in” of foreign films and investments is becoming increasingly convenient and profitable, whereas the “going out” of domestic films stays in a stagnant or even retrogressive situation. This issue results from an essential factor: the government’s intervention, as well as its policies. This article endeavors to study the duality of the government’s role in the film industry. First, it generally creates a favorable economic environment, which coincides with Stiglitz’s judgement about the government’s positive function in promoting industries. Marvel films provide us with an example to support this point of view. Second, the inadequacy of the incentive and protective policies denotes the opposite direction taken from the propositions of Michael Porter, who himself is strongly against the direct involvement of the government in the production process, during his demonstration of the diamond model referring to competitive advantages. This paper implies that the government’s intervention should be assessed by new paradigms, for the reason that classic theories, with focus on factor conditions, might not be applicable anymore for neither sophisticated industries, like the film industry, nor such an enormous entity as China.


competitive advantages, domestic films, film industry, foreign films, government’s role, industrial policies

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Kritika Kultura
Department of English
School of Humanities
Ateneo de Manila University

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Jan Baetens
Faculty of Arts
Katholieke Universiteit te Leuven (Belgium)

Joel David
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Inha University (South Korea)

Michael Denning
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Department of English
Yale University (US)

Faculty of Cultural Sciences
Universitas Gadjah Mada (Indonesia)

Regenia Gagnier
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University of Exeter (UK)

Leela Gandhi
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Brown University (US)

Inderpal Grewal
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Yale University (US)

Peter Horn
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University of Cape Town (South Africa)
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University of the Witwatersrand (South Africa)

Anette Horn
Professor of German Studies
University of the Witwatersrand (South Africa)

David Lloyd
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University of California, Riverside (US)

Bienvenido Lumbera
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University of the Philippines

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Yale NUS College (Singapore)

Vicente L. Rafael
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University of Washington (US)

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Department of Linguistics
University of California, Davis (US)

Temario Rivera
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Department of Political Science
University of the Philippines

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Philippines Studies Center (US)

Neferti X.M. Tadiar
Professor of Women’s, Gender, & Sexuality Studies
Barnard College (US)
Director of the Center for the Study of Ethnicity and Race
Columbia University (US)

Antony Tatlow
Honorary Professor of Drama
Trinity College Dublin (Ireland)