by Conan Simmons – August 10, 2020 – 7:35 am
Pro-Democracy British citizen and media tycoon Jimmy Lai was arrested in Hong Kong today by Communist Chinese authorities. This is the latest in China’s force of anti government crackdowns under the National Security Law which includes severe penalties against those who protest against the Chinese flag.
Tensions have been rising lately between the United States and China. Closures of embassies in Houston and Chengdu along with increased tariffs and bans on businesses from airlines to TikTok have set the table for an international breakdown between the world’s two biggest superpowers. Now, with the arrest of pro-democracy media tycoon Jimmy Lai and his two sons along with several employees, China threatens to upend financial transactions for all businesses holding interests in the two countries.
The crackdown on media that doesn’t promote the official Communist China Party line is an abhorrent threat to Hollywood as it continues to seek penetration into the vast market of potential consumers. This potential market opening has been all the more important as theaters in the United States of America remain closed due to poor government and public response to the ongoing Covid-19 threat. As long as people continue to refuse to take necessary safety precautions such as wearing a mask, social distancing and washing your hands the economic well-being, especially that of theaters, in the U.S. will remain under severe threat. China is using all of these factors against pro-democracy capitalism and are now blatantly forcing businesses to comply with their communist propaganda.
Major Hollywood studios the like of Disney and Paramount have increasingly relied on funding from Chinese investors over the past couple of decades. Everything from Marvel movies to the Transformers franchise have bent over backward to please Chinese censors in order to gain access to one of the world’s largest consumer markets. By arresting Jimmy Lai, China is signaling that Hollywood will have no choice but to actively promote the anti-capitalist agenda that is the foundation of the communist People’s Republic of China. If Hollywood refuses they will be cut off not only from potential profits but from much needed investment capital to keep blockbuster tentpole movies alive.
Hollywood isn’t the only one feeling the heat. Tech companies like Apple, which just recently launched their own foray into the Hollywood sphere with AppleTV, will be even more affected. They will be forced to share company information, including profits and consumer data, with the communist government of China. If they refuse their factories most likely will be forced to close in that red country and their products barred from the marketplace.
From Hollywood to Big Tech one thing they all have in common is they all have to go to the bank.
Banks are left in extreme uncertainty as to whether it’s business as usual in China or if they too will be subject to the increasing oppressive authoritarianism that is cracking down on all who dare speak their minds in the streets of Hong Kong. Sanctions are flying left and right between China and the U.S. at a rapidly moving rate. So much uncertainty in the financial sector will only lead to a decreasing number of investors as most will choose to hold onto their money.
This harsh reminder of how communism is bad for a free market society will soon force Hollywood to make a decision regarding its business practices going forward. Will they choose freedom of expression or will they bow to a government’s mandate?