Where in the world is Fan Bingbing?

This story has legs

I’d say it’s Fan’s legs, but most of the publicity photos only focus on her face and her formal evening gowns.

OCTOBER 8, 2018 10:19AM PT
China Cracks Down on Entertainment Industry Taxes After Fan Bingbing Scandal
By VIVIENNE CHOW


CREDIT: INVISION/AP/SHUTTERSTOCK

China’s entertainment companies and top-earning celebrities have been warned to re-examine their taxes dating back to 2016 in light of the Fan Bingbing tax evasion scandal.

The State Administration of Taxation said in a statement released on Monday that beginning on Oct. 10, provincial tax authorities will inform local film and television production companies, talent management agencies, performance companies, studios of individual celebrities, as well as relevant companies and high-earning film and television industry practitioners about the re-examination of their tax returns submitted since 2016. Companies and related industry workers who discover and pay their unpaid taxes upon self-conducted inquiry of their previous tax returns by Dec. 31 will not be penalized, the statement said.

From January to the end of February 2019, tax authorities will target certain companies and industry workers to “further self-correct” their taxes based on their self-conducted re-examination results. Those who are warned to self-correct their taxes at this stage will be penalized, but the level of punishment will vary depending on the situation. Heavy penalties will be applied to those who fail to comply between March and June next year.

Authorities will review the current taxation policies applied on film and television industries and set up a new, effective system by the end of July 2019.

It emerged last week that Bingbing, China’s most famous actress who disappeared for 123 days when she was reportedly arrested, was accused of tax evasion after splitting contracts for her appearance in war epic “Unbreakable Spirit.” She was ordered to pay a total of $129 million (RMB880 million) in unpaid taxes, late payments, and penalties. The State Administration of Taxation also announced that five officials from the regional taxation office of Wuxi of the Jiangsu province, where Fan’s company is based, have been either fired or demoted.

The share price of Huayi Brothers, which produces “Cell Phone 2” and acquired the local rights to all-female action drama “355,” both starring Fan, plunged to a new low at $0.73 (RMB5.02) per share on the first trading day after China’s national holiday week, down more than 50% from its peak at $1.51 (RMB10.42) at the beginning of 2018.

Just one more for today

The View by Mimi Zou
Fan Bingbing’s fall from grace turns the spotlight on the far-reaching yin-yang economy in China
Mimi Zou says separate contracts for official use and for execution by private parties are common in the construction industry and property transactions, and are even legitimised by the courts
PUBLISHED : Tuesday, 09 October, 2018, 10:04am
UPDATED : Tuesday, 09 October, 2018, 10:37pm
Mimi Zou

When Fan Bingbing “disappeared” in July, there was much speculation about what had happened to China’s highest-paid actress. She returned to the spotlight last Wednesday when Chinese authorities announced that she has been ordered to pay nearly 884 million yuan (US$129 million) in unpaid taxes, fines, and penalties for tax-related offences. Fan is the most high-profile personality to date to be subject to the Chinese government’s crackdowns on celebrities’ earnings and tax evasion practices.

Central to the authorities’ investigation is Fan’s use of “yin-yang contracts” to conceal her real earnings. The actor entered into two contracts for the same work: a “yang” (“in the light”) contract showing lower earnings for the tax authorities and a separate “yin” (“in the dark”) contract with a larger figure that is unreported. Such contracts have become quite prevalent in the Chinese entertainment industry to circumvent tax laws and, more recently, a policy capping television and film stars’ earnings to discourage “money worship” and “distortion of social values”.

The Fan Bingbing scandal unfolded in June, when a television presenter leaked on social media documents of two yin-yang contracts that were purportedly linked to Fan’s work in the film Air Strike. One contract was for 10 million yuan, another for 50 million yuan. At the time, Fan’s studio denied any wrongdoing by the actress. The TV presenter later withdrew the allegations and apologised to Fan, but the tax authorities had already launched their probe.

According to the State Administration of Taxation, Fan had earned 30 million yuan for her work on the film Air Strike but had only declared 10 million to the authorities, thus evading 6.18 million yuan in personal income tax. Fan and her company also owed 255 million yuan in unpaid taxes.

Beyond the entertainment industry, yin-yang contracts are found across a variety of sectors and transactions in China. For example, in construction projects, the yang contract is signed by the construction unit and the bid-winning contractor in accordance with Chinese Bidding Law and official bidding documents.

This contract is registered with the administrative department of the construction unit. Meanwhile, a yin contract is concluded between the parties in private, usually to avoid administrative supervision and management by the relevant government authorities. The yin contract spells out the actual execution of the project.

Such contracts are also common in property transactions. The yin contract indicates the real transaction price, while a yang contract stating a lower price is produced for the transfer of title registration to enable the parties to pay less capital gains and other taxes.

Another type of yang contract is one with a higher price that is submitted to the bank to apply for a bigger mortgage. The parties may also attempt to split the full transaction price into two contracts: one sales contract – which states a low sale price for the property – and a separate contract for refurbishments and furniture.


A man works on the construction site of a residential skyscraper in Shanghai in November 2016. Yin-yang contracts are commonplace in both the construction industry and property market. Photo: AFP

While the use of such contracts for tax evasion or other unlawful purposes attracts administrative and possibly criminal sanctions, are yin-yang contracts unenforceable per se if a dispute arises between the contracting parties? There is no easy answer.

[QUOTE]Chinese courts have adopted a case-by-case approach to determining the validity of yin-yang contracts

Under Chinese contract law, a contract established according to law becomes effective at the time of its establishment. If relevant laws and administrative regulations require the approval or registration of a contract before it comes into effect, then those provisions apply. As a general principle, a valid agreement between the parties is the genuine expression of their intention. Thus, while the yang contract may be the registered official contract, the yin contract reflects the parties’ true intention.

Furthermore, the main Chinese contract law legislation lists several grounds on which a contract can be deemed void: contracts that appear legitimate on the surface but conceal an illegal purpose; contracts that violate mandatory provisions of laws and administrative regulations; and, contracts that harm social and public interests. On these grounds, Fan’s use of yin-yang contracts for tax evasion renders both contracts void.

In judicial practice, Chinese courts have adopted a case-by-case approach to determining the validity of yin-yang contracts. For example, if the difference in the value of the two contracts is small, courts tend to recognise the validity of either. Sometimes, courts may determine the price clause to be invalid while upholding the validity of the remaining contract.

Fan’s fall from grace and the recent government crackdown on celebrities’ tax-dodging schemes have redirected our attention towards the ongoing problems of China’s yin-yang economy. In 2010, the Post called for the stamping out of rampant yin-yang contracts in property transactions, since these practices distort property prices and the market.

However, yin-yang contracts, which have become ubiquitous in many parts of the economy, will not disappear after the latest crackdown. One can only hope that the long-standing tacit tolerance of such practices by government authorities and courts will begin to change.

Mimi Zou is the inaugural Fangda Fellow in Chinese Commercial Law at Oxford University. She is the author of An Introduction to Chinese Contract Law[/QUOTE]

China’s yin-yang economy. I wish the U.S. had such a cute name for its tax evaders.

With all this going on (like China’s detention of the head of Interpol), I wonder if Jackie Chan has anything to worry about regarding tax evasion (or the accusation of it)?

Jackie

[QUOTE=Jimbo;1311000]With all this going on (like China’s detention of the head of Interpol), I wonder if Jackie Chan has anything to worry about regarding tax evasion (or the accusation of it)?[/QUOTE]

Jackie dodged that bullet early in this scandal. Taking him down would be really huge given his global status. Fan has global status too, but only in the international film festivals, not on the pop level like Jackie, not yet.

355

I could’ve sworn I started a 355 thread here before. Well, here it is now, fallout from the Fan Bingbing scandal.

OCTOBER 10, 2018 1:00AM PT
Fan Bingbing May Have Been Found, but 355 Still Needs to Locate a Star
By MATT DONNELLY
Senior Film Writer
@MattDonnelly


CREDIT: JOEL C RYAN/INVISION/AP/REX/SHUT

Kill the chicken to scare the monkeys, goes an old Chinese proverb about making an example of an individual to rattle the many.

Embattled Chinese actress and global celebrity Fan Bingbing, who last week admitted to running afoul of her government and evading millions of dollars in taxes, is absolutely being made an example of, Hollywood insiders and regional experts who spoke to Variety say.

After becoming the subject of wild conspiracy theories over her well-being before resurfacing Oct. 3 in a state of deep contrition, Fan is also likely to also face consequences in the very realm that could save her from financial ruin: show business.

Producers on her next gig, the international all-female action movie 355, are prepared to fire and replace her should she not emerge from scandal in a manner that satisfies the government, film distributors and Chinese moviegoers, multiple individuals close to the project say. For now, the team is content to watch and wait, with production not expected to begin until spring of 2019.

Any decision would specifically be made to please Huayi Brothers, the entertainment company that paid a hefty $20 million in May for the rights to release 355 in mainland China when the deal was packaged out of the Cannes Film Festival.

While the film will also star Jessica Chastain, Lupita Nyongo, Penélope Cruz and Marion Cotillard, a top Chinese star would be crucial for any mainland distributor to recoup such a high rights fee.

The state could also impose a media ban on Fan and force an acting hiatus, as it did in 2007 with Tang Wei, the breakout star of Ang Lees Lust, Caution. Tang was removed from all theatrical prints and advertisements for the film and did not work again for three years.

Representatives for 355 director Simon Kinberg and FilmNation, the movies sales agent, declined to comment for this story. A rep for Huayi Brothers did not respond to Varietys request for comment.

A $130 million bill for unpaid taxes, late fees and fines, and an empty dance card are not Fans only woes. The bigger issue for Huayi and other producers is how uncertain public reaction will be. The public is not sympathetic to those who have flouted the law, Clayton Dube, director of the U.S.-China Institute at USC Annenberg, says of 355s commercial prospects in China. Shes in a slightly different category, because she wasnt taking public money, Dube adds. But shes not contributing to the public purse. Thats still corruption.

Fan was reportedly detained and grilled for months over secret contracts shes said to have signed in parallel with the deals she officially reported to tax authorities regarding her film work. While fans wondered about her disappearance from public view, Chinese academics awarded her a shocking score of zero in an annual state-sanctioned report ranking the social responsibility of Chinese celebrities, presaging her spectacular fall from grace.

The media coverage labeled her toxic for the tens of millions of Chinese youths who obsessively follow her as an artist, fashion plate and ultimate influencer. While the social responsibility report likened her to the Chinese equivalent of a Kardashian sister, Fans brand is observably upmarket.

[QUOTE]The bigger issue is how uncertain public reaction will be. The public is not sympathetic to those who have flouted the law.
CLAYTON DUBE, U.S.-CHINA INSTITUTE, USC ANNENBERG

Shes been the face of campaigns for Louis Vuitton, jeweler De Beers, Adidas and luxury trinket maker Montblanc. That last company dropped her as a result of the tax scandal. More are expected to follow suit.

Its not all bad news for Fan. Global agency CAA has no plans to drop her from its client lists as she works on mending fences, an individual close to the actress says. A CAA spokesperson declined to comment.

CAA does not rep Fan in China, but scouts global branding and acting opportunities for the star. The thinking inside the agency is that Fan will not face any criminal charge as long as she settles up with the government, and she still has plenty of support from her global fan base. CAA would also be shielded from any investigation as it takes no commission on her Chinese deals.

An important sign that the government does not wish to scrub Fan from the face of the Earth lies in her active account on Chinese social media giant Sina Weibo, says Dube. Its striking to me that they didnt pull the plug and close her account. They didnt make her a nonperson, he says.

Indeed, it was on Weibo that Fan made an abject apology for the entire mess. Im facing enormous fears and worries over the mistakes I made! I have failed the country, societys support and trust, and the love of my devoted fans, she wrote.

Fan will be preoccupied with being the sacrificial chicken for some time. As for the monkeys? There are nearly 200 well-paid actors now in the governments crosshairs, reports say, based on the muckraking of a Chinese talk-show host named Cui Yongyuan.

Cui is credited with exposing Fans parallel contracts, known as yin-yang deals, and says hes got a list of 585 actors and crew in China who engaged in similar practices. An industrywide investigation is under way.[/QUOTE]

Seen!

There’s a short vid

Chinese star Fan Bingbing seen in Beijing after lengthy disappearance
By Ben Westcott, CNN
Updated 6:28 AM ET, Wed October 17, 2018
Fan Bingbing seen after lengthy disappearance

Hong Kong (CNN)Chinese film star Fan Bingbing has appeared in public for the first time since she vanished without a trace three months ago, sparking rumors that she had been disappeared by the Chinese Communist Party.

In a video posted by Baidu News and shared on Chinese social media site Weibo, Fan was shown leaving Beijing Capital International Airport on Monday night, wearing dark glasses to hide her face and followed by a man with a large black umbrella.
Despite her attempts to slip in under the radar, the 37-year-old actress was caught on camera by paparazzi photographers.
CNN has not been able to independently confirm the veracity of the photos.


Actress Fan Bingbing attends the 2017 Time 100 Gala at Jazz at Lincoln Center in New York City.

Fan is among China’s best known film stars, commanding million-dollar contracts for her performances in dozens of Chinese productions. She has also appeared in large international film franchises, such as X-Men.
But after allegations of tax avoidance by Fan were aired on Chinese social media in June, the high-profile actress disappeared from public life without a statement or explanation.


Fan’s disappearance caused speculation she had been detained by the Chinese government.

Experts speculated she had been put into detention by the Chinese government while the tax allegations against her were investigated, a worrying development given her huge public profile and international standing.
“That China feels so emboldened to disappear even one of its most famous actresses … should be a real wake up call that anyone within China could be next,” human rights advocate Michael Caster wrote for CNN in September.


Fan wore dark glasses and was followed and partially shielded by a man with a large black umbrella.

On October 2, the Chinese government announced Fan had been fined for tax evasion, using multiple contracts to hide large secret additional salaries for her performances.
Fan had to pay $130 million, according to the government, which included $42 million in late taxes and fees. Because she was a first-time offender, the government said there would be no criminal charges filed.
The actress posted an apology to her official social media accounts, saying she “completely accepts” the decision of the tax authorities.
“Without the favorable polices of the Communist Party and state, without the love of the people, there would have been no Fan Bingbing,” she added.
Despite her apology and fine, the controversy appears to still be affecting movie projects involving Fan. There was speculation her latest film, “Air Strike,” could be pulled in China after its director appeared to make a resigned statement on Weibo. The World War II film, produced by Mel Gibson, also stars Bruce Willis and Adrien Brody.
“It is time to put (it) down … I have apologized to my main partner who has kept on supporting me, my distribution team who has been working hard, and viewers who have been anticipating the film,” he said on his verified account.
CNN has not received official confirmation of whether “Air Strike” will be released in China.

We never started a thread on Air Strike. It didn’t seem Kung Fooey enough. :rolleyes:

I guess we didn’t need that Air Strike thread after all.

I wonder if we’ll ever see it now.

Film Starring Fan Bingbing, Bruce Willis Canceled After Tax Case
7:40 PM PDT 10/17/2018 by the Associated Press


George Pimentel/WireImage
Fan Bingbing

The director of Air Strike, featuring Chinese actress Fan Bingbing, says the film’s release has been canceled in the wake of her disappearance and conviction on tax evasion charges.

The World War II thriller, also starring Bruce Willis and Adrien Brody, was to have been released Oct. 26.

However, director Xiao Feng on Wednesday posted on his Weibo miniblog that it was “time to let go” after eight years of work on the film.

Chinese tax authorities this month ordered Fan and companies she represents to pay taxes and penalties totaling $130 million, ending speculation over the fate of one of the country’s highest-profile entertainers three months after she disappeared from public view.

State media said Fan evaded taxes by using two separate contracts for her work on Air Strike.

The actress has starred in dozens of movies and TV series in China and is best known internationally for her role as Blink in 2014s X-Men: Days of Future Past, a cameo in the Chinese version of Iron Man 3 and for star turns on the red carpet at Cannes as recently as May.

Before her disappearance, she had been booked to star with Penelope Cruz in the Hollywood film 355.

Fan posted an apology on her official Weibo account, saying that she accepted the tax authorities’ decision and would “try my best to overcome all difficulties and raise funds to pay back taxes and fines.”

“I am unworthy of the trust of the society and let down the fans who love me,” she wrote in her first update of her Weibo.com microblog since June 2.

Fan’s disappearance coincided with a crackdown by Chinese authorities on high salaries for actors that can eat up much of the cost of a production. In June, regulators capped star pay at 40 percent of a TV show’s entire production budget and 70 percent of the total paid to all the actors in a film.

Same goes for The Bombing & Unbreakable Spirit

Well now, we do have a thread on Unbreakable Spirit:cool:

I’ll copy this off our Where in the world is Fan Bingbing? thread to there too.

The bombing indeed. Apt title. :rolleyes:

OCTOBER 17, 2018 6:07AM PT
China Release of Fan Bingbing-Bruce Willis Film Unbreakable Spirit Is Scrapped
By VIVIENNE CHOW


CREDIT: COURTESY OF CHINA FILM GROUP

The planned theatrical release of big-budget Chinese war movie Unbreakable Spirit has been scrapped following allegations of money laundering. The film had earlier been at the center of the tax avoidance allegations involving actress Fan Bingbing.

The film, previously known as The Bombing, was originally set for an August release. That was rescheduled to Oct. 26 after the Fan affair became major news. But Chinese media now report the release as canceled altogether.

Aside from Fan, the film has a stellar cast that includes Bruce Willis, Liu Ye, and Nicholas Tse. Director Xiao Feng said the film had taken eight years to make.

It is time to let it go, Xiao Feng wrote on social media. My sincere apologies to my crew, the distribution team, and all audiences who had high expectations of the film.

The films distributors, Beijing United Exhibition Partners, and Qi Tai Culture did not respond to Varietys inquiries.

The decision comes a day after Cui Yongyuan, the TV host who sparked the Fan scandal by posting what he alleged were double contracts intended to defraud the tax authorities, said that the films budget had been artificially inflated.

The films executive producer Wang Ding has claimed that the film did not exceed its original estimated production budget of $21.7 million (RMB150 million). But other sources have estimated the budget at $90 million.

Cui alleges that vastly larger sums of Shanghai pension fund money were washed through the production. [Unbreakable Spirit] had more than $432 million (RMB3 billion) coming from unidentifiable sources. During production, $245 million (RMB1.7 billion) was extracted through dirty tricks. This is why the director and crew are unable to clarify exactly how much money has been spent, Cui wrote. We must boycott the film.

Unbreakable Spirit has a history of financial woes. One of the original investors, Hehe Film & Television, pulled out after its parent company, Kuailu, was caught up in a box-office fraud scandal surrounding Ip Man 3 in March 2016. Shi Jianxiang, Kuailus former chairman and the original producer of Unbreakable Spirit, fled the country and is currently on Chinas international wanted list. Beijing-based Yuanhua Pictures took on Hehes part and kept the production going.

This story isn’t over

The Fan Bingbing saga shows China’s willingness to control overly wealthy celebrities
A comprehensive explainer of everything that’s happened so far
By Shannon Liao @Shannon_Liao Oct 23, 2018, 3:33pm EDT


Photo by Emma McIntyre/Getty Images

China’s highest-paid actress Fan Bingbing (X-Men: Days of Future Past) disappeared this summer following accusations of tax evasion. This month, an apology for breaking the law appeared on her social media account, and Fan has been ordered to pay 884 million yuan ($127 million) to avoid criminal prosecution. Last week, she resurfaced in paparazzi shots, but the Chinese release of her upcoming film Air Strike (also commonly translated as Unbreakable Spirit or The Big Bomb), also starring Bruce Willis, was canceled.

In the span of four months, one of the most famous and beloved women in China transformed into a symbol of corruption in a saga that captivated Chinese social media. So what happened?

It all began in May when TV presenter Cui Yongyuan posted screenshots on the social media service Weibo of what appeared to be Fan’s employment contract for an upcoming sequel to the very successful 2003 film Cell Phone. It stated she would earn 10 million yuan ($1.4 million), have two luxury cars and a daily food allowance of 1,500 yuan ($215). Cui used the caption, “Don’t bother acting, you really suck!”

The next day, he posted again, suggesting that Fan was being paid through two different contracts for the movie: one for 10 million yuan and another for 50 million yuan ($7.2 million). Only the first contract would be disclosed to tax authorities, while the second was kept secret so that Fan could avoid paying taxes on it, a common practice known as a “yin-yang contract.” He also stated that the actress only had to work for four days for the combined 60 million yuan.

Fan’s studio responded by threatening to sue Cui for libel. Bizarrely, Cui later apologized for attacking Fan and said in an interview with local media that the two contracts he shared had nothing to do with her, but rather a “gang” of other people who had been involved in drafting them. When Fan was fined in October, however, he encouraged people to boycott Air Strike. He was also able to pocket 100,000 yuan ($14,393) as a whistleblower’s fee for exposing Fan.

In June, Chinese tax authorities announced new rules for the film industry, curbing the ability of top actors like Fan to acquire immense wealth. Actors would no longer be allowed to earn more than 70 percent of the cast’s wages combined, or more than 40 percent of production costs. Although Fan wasn’t mentioned in the announcement, the tax authorities criticized the film industry for “fostering money worship” and allowing young people to “blindly chase celebrities.” The timing and the wording of the announcement indicated that Fan was being targeted because she had amassed too much wealth and influence.

Then in July, Fan vanished. A Chinese news report stated that authorities were investigating her and had barred her from leaving the country. That report was soon deleted, likely pulled by state censors. Social media posts questioning her disappearance were also removed. Despite the censorship, what happened to Fan became a hot topic in China and online; her name was the number one search result on the search engine Baidu the day after her sentence was declared.


Baidu’s top news stories after tax authorities announce Fan Bingbing’s fines.

Over the past two years, Fan has endorsed 122 brands, including Louis Vuitton, Montblanc, Mercedes-Benz, and Cartier. But as her scandal continued, many of those companies began to distance themselves. Thai travel retailer King Power dropped Fan as its brand ambassador in September, and Australian vitamin brand Swisse stopped using Fan in promotional photos around the same time. Montblanc confirmed to The New York Times in September that it had terminated its contract with Fan. In August, prior to Air Strike’s Chinese cancellation, a new poster for the film appeared, excluding Fan. Although she isn’t blacklisted, Fan Bingbing is now a tainted name in China.

continued next post

Continued from previous post

WHY FAN BINGBING?
China’s film industry is riddled with yin-yang contracts, so why was Fan, in particular, targeted? The most obvious answer is her cultural and financial power; even the popularity of Chinese president Xi Jinping is dwarfed in stature by Fan’s stardom, and that’s precisely the problem.

In March, Xi abolished presidential term limits that would have ended his rule by 2022. The move signaled that China had ended its reform era, where a new leader would take power every 10 years and shape the country in a different way. Some have even compared Xi to Mao Zedong, who developed a personality cult and created the “paramount leader” style of rule, where he would still retain control even when he wasn’t officially the head honcho.

[QUOTE]NETIZENS ENJOY MOCKING XI JINPING BY COMPARING HIM TO WINNIE THE POOH

But on social media, Xi doesn’t always fare so well. In fact, it’s the one place people can enjoy some level of free expression by mocking him. Although this mockery is heavily censored, the occasional meme slips through. So many people compared Xi to the portly bear Winnie the Pooh that the government ended up banning a Winnie the Pooh film from the country.

In contrast, social media posts about Fan — and her reputation — were overwhelmingly positive, prior to the tax-evasion scandal. They primarily focused on her beauty and her charity work. Since breaking into the film industry 15 years ago, Fan has become an icon. That’s dangerous to the government, and her gender only compounds the problem.

//youtu.be/geY-MZ0v_ts

Fan once told Chinese reporters, “I don’t need to marry into a wealthy family. I am my own wealthy family.” It was a seemingly innocuous statement that could also be interpreted as subversive to the patriarchal state. The sense that a strong woman could be self-sufficient, not need a man, and even run this world, isn’t just a series of Beyoncé lyrics, but a real threat Beijing is taking seriously. As Jiayang Fan of The New Yorker puts it, a woman rising in power through wealth and fame is a real “existential terror” that the regime is facing.

Fan’s rags-to-riches success story has now become a communist morality tale about how the rich need to be shamed and punished for excess. Perhaps to drive this point home, the Beijing Normal University and the Chinese Academy of Social Sciences produced survey results in September that found that only nine out of 100 television and film personalities were “socially responsible.” Judging celebrities on their professional work, charitable donations, and overall integrity, the researchers ignored Fan’s substantial charity work and gave her the lowest ranking out of all 100.

On October 3rd, Fan reappeared on Weibo with a “letter of apology.” It reads: “I shouldn’t have lost my ability to govern myself in the face of economic interests, leading myself to break the law,” and, more alarming, that “without the great policies of the [Communist] Party and the country, without the love of the people, there would be no Fan Bingbing.” The apology admits Fan committed tax evasion by signing yin-yang contracts for Air Strike. Even if we are to believe that she wrote that apology herself, it was almost certainly produced under coercive circumstances at the government’s behest.

Jiayang Fan

@JiayangFan
In China,every time I mentioned Fan Bingbing’s name, some local would feel compelled to say,"Ah, #1 beauty under the heavens!"As much as beauty is prized in China, suffice it to say, the greatest beauty in the world can’t seduce the Party.https://www.bbc.co.uk/news/world-asia-china-45426882

10:09 PM - Sep 11, 2018
Actress Fan Bingbing
Vanished China star gets 0% ‘goodness’ rating
Fan Bingbing, a film star not seen in more than two months, is ranked last in a report judging A-listers.

bbc.co.uk
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On the same day Fan reappeared in public, Air Strike’s cancellation in China was announced in a brief post by the film’s director on Weibo. It was “time to let go” after eight years of working on it, he wrote. Now that Fan has resurfaced and apologized, it appears that the government has secured its ill-gotten victory. Other celebrities who have used yin-yang contracts to evade taxes have been given a grace period to pay up before December 31st and be exempt from punishment. Should Fan and the others not make the appropriate payments, their finances will be escalated to criminal cases handled by the police.

For more than a decade, Fan has been a strong, powerful woman adored by the public. Her demure apology and obeisance to Beijing is exactly what the government sought by singling her out: a return to the status quo that would put her in her place. Underneath the surface accusations of tax evasion and extravagant excess, there was another story unfolding: a subtle power struggle between China’s strong woman and its strongman leader. The latter appears to have won.[/QUOTE]

The next chapter will be - what does Fan Bingbing do next?

Air Strike strikes out

OCTOBER 27, 2018 9:12AM PT
Film Review: ‘Air Strike’
The myriad offscreen woes experienced by this controversial, expensive Chinese WW2 action epic overshadow the hectic, jumbled onscreen result.
By DENNIS HARVEY
Film Critic


CREDIT: LIONSGATE

Director: Xiao Feng With: Bruce Willis, Ye Liu, Rumer Willis, Seung-Heon Song, William Chan, Wei Fan, Wu Gang, Ma Su, Yongli Che, Feng Yuangzheng, Geng Le, Ning Chang, Nicholas Tse, Fan Bingbing, Chen Daoming, Adrien Brody, Lei Jia, Simon Yam, Ray Lui, Shibuya Tenma, Hu Bing, Huang Haibing. (English, Mandarin, Japanese dialogue.) Release Date: Oct 26, 2018
Rated R 1 hour 36 minutes

Few films can claim a bumpier, more public production ride or worse crash landing than “Air Strike,” purportedly the most costly Chinese feature ever when it was shot — which was three years ago. Since then, it’s undergone several title changes, delays, and most cripplingly become part of a wide-ranging tax evasion scandal in which actress Fan Bingbing was convicted for financial fraud. As a result, the film’s Chinese release was canceled outright. In the U.S., Lionsgate scaled its primary distribution plans back to on demand, with subsidiary Grindstone handling a much-reduced theatrical launch. Oh, and a movie shot in 3D now appears to be showing nowhere in that format.

Of course, most viewers roped in by the promise of Bruce Willis in a WW2 combat movie (with Mel Gibson conspicuously listed as production “consultant”) will be oblivious to all that offscreen drama. What’s onscreen, however, is bound to make them suspect something went awry along the way. Eye-blink-brief appearances by prominently billed cast names are hardly the only truncated element in a hectic mishmash that reportedly ran five hours in an early cut, and now clocks in at just more than 90 minutes.

Conceived as an epic 70th-anniversary ode to “the Allied victory over fascism,” “Air Strike” retains elements of evident expanse and expense. Yet the final result is such a compromised jumble it’s hard to tell what its full original intentions might have been. Several main plot bones still stick out, however sawed-off, not to mention obscured by a barrage of barely contextualized spectacle. In one, U.S. military advisor Col. Jack Johnson (Willis) trains a squadron of Chinese pilots trying to fend off the Japanese invasion that started two years earlier in 1937. Seung-Heon Song, William Chan and Nicholas Tse play the chief flyboys he yells at between perilous missions.

Meanwhile, ex-pilot Xue Gangtou (Ye Liu) drives a military truck across treacherous terrain, carrying top-secret cargo. En route, he reluctantly acquires passengers including a teacher (Ma Su) and students whose school has been bombed; a resourceful but slippery possible spy (Gent Le); and a government scientist (Wu Gang) delivering specially bred piglets that might avert famine. At the same time, ordinary citizens in provisional capital Chongqing are under relentless attack by the Imperial Air Force — though somehow that doesn’t stop Fan Wei from presiding over a mahjong tournament that continues despite all adversity.

One suspects these strands were once meant to have a grand, interweaving old-school sweep under the direction of Xiao Feng (“Hushed Roar”). But “Air Strike” feels like a movie whose populist yet complicated narrative elements have been haphazardly pared to the nub, while the money shots — all things that go boom, as a great many do here — were left intact.

Unfortunately, they turn out to be more of a liability than a selling point. Though estimates of the film’s budget have ranged all over the map (from $22 million to three times that amount), the price tag was surely high enough to render surprising the shoddiness of the effects in myriad scenes of air combat and cities under fire. Such imagery’s video-game quality only trivializes scenes of mass destruction, which in turn often reach for a crude tear-jerking effect by throwing anonymous children in harm’s way.

The team-credited script piles on a Westernized series of popcorn action-flick perils, credulity-stretching stunts, and protagonists’ attempts to out-macho one another via fistfights and noble sacrifices. In the English-language version reviewed, awkward ESL dialogue clichés (one Chinese pilot earnestly entreats Willis with “Sir! Please allow us to go kick some ass!”) are not helped by the fact that individual actors sometimes seem to have been dubbed by multiple voices. (Willis gives a late pre-raid toast that sounds nothing like him.)

Other elements are less cluttered than simply arbitrary. If the “special appearances” by stars like Adrien Brody and Fan Bingbing are so abbreviated one wonders why they’re here at all, Rumer Willis has even less screen time — and third billing, nonetheless. The additions of comic relief and romantic interests could hardly feel any more inorganically stuck-on. An initially ubiquitous use of onscreen text to identify locations, characters, and even military equipment soon drops off to nothing. All this results in a film that is loud and busy, yet lacks any tonal consistency or narrative center — we’re never quite sure where whatever’s going on at present fits into an ill-defined bigger picture.

Yet certain aspects are polished and impressively scaled enough to suggest a movie that was perhaps never going to be inspired, but at least once had a coherent, ambitious scope. Many sequences on the ground involve imposing crowds and sets (Huaiqing Mao is the production designer), though they’re seldom glimpsed for long. The only thing here that doesn’t feel curtailed is the eight-minute closing credits crawl, no doubt featuring many names whose work is no longer much in evidence onscreen. (Evidence that “Air Strike” continues to suffer editorial indignities was provided this week by an online U.K. DVD review listing a runtime 20 minutes longer than the U.S. cut.)

In addition to Gibson’s ambiguous contribution (in some advance publicity he was curiously listed as the art director), there are also “consultant” credits for other luminaries, including late cinematographer Vilmos Zsigmond. One assumes these are more honorary designations than evidence of real input, as despite some handsome aerial shots and a very wide aspect ratio, the overall look (beyond those sub-par effects) is pedestrian.

Veteran stunt coordinator Bruce Law is billed as “action director,” and the non-CG physicality is indeed splashy, yet of an ilk that would be more appropriate in a Jackie Chan caper than a WW2 epic based on real historical events. (Too many vehicles crash into too many buildings simply so we can see things get smashed.) One design contribution that is at least conventionally appropriate is Wang Liguang’s score, which is duly performed by the London Symphony Orchestra.

The starry Chinese cast, many among them barely utilized, works hard to dimensionalize roles that remain stubbornly, sometimes cartoonishly one-note. The three Americans each manage to be bad in entirely different ways: One local pilot’s snipe that “This Yank thinks he’s a hard-ass” pretty well sums up Willis Sr.’s Sgt. Rock-like turn, Brody sports the appalled, disheveled look of a man who has no idea what he’s doing here, and Ms. Willis makes an appearance so brief and irrelevant you might wonder why her role wasn’t edited out entirely.

Film Review: ‘Air Strike’

Reviewed online, San Francisco, Oct. 26, 2018. MPAA Rating: R. Running time: 96 MIN.

PRODUCTION: (China) A Grindstone Entertainment Group release (U.S.) of a Lionsgate Films, Grindstone Entertainment Group, China Film Co., Origin Films, Shanghai Nanchuo Co., Hollywood International Film Exchange presentation. Producers: Xiao Feng, Yang Buting, LA Peikang, Fu Jijun, Ren Zhonglun, Jiang Haiyang, Ling Hong, Li Hong. Executive producers: Wang Yianyun, Jiang Ping, Xiao Zhiyue, Zhao Haicheng, Yu Xingbao, Barry Brooker, Stan Wertlieb, Jimmy Jiang, Kimberly Kates.

CREW: Director: Xiao Feng. Screenplay: Chen Ping, Yang Hsin-Yu, Zhang Hongyi, Zhang Hongyi, Yushi Wu, Xiaoqi Li, Qiao Wa. Camera (color, widescreen, HD): Yang Shu. Editors: Chi-Leung Kwong, Robert A. Ferretti. Music: Wang Liguang.

WITH: Bruce Willis, Ye Liu, Rumer Willis, Seung-Heon Song, William Chan, Wei Fan, Wu Gang, Ma Su, Yongli Che, Feng Yuangzheng, Geng Le, Ning Chang, Nicholas Tse, Fan Bingbing, Chen Daoming, Adrien Brody, Lei Jia, Simon Yam, Ray Lui, Shibuya Tenma, Hu Bing, Huang Haibing. (English, Mandarin, Japanese dialogue.)

We definitely won’t need an indie Air Strike review after this.

Although maybe we can see Air Strike in the U.S…

…someone else review it.

Fan Bingbing movie opens at last - in the US
PUBLISHED OCT 29, 2018, 5:00 AM SGT
SHANGHAI • Actor Bruce Willis knew he was not in Hollywood anymore.

When his private jet landed in China three years ago for the shooting of Air Strike, the film crew did not have the money to pay the deposit for his hotel room.

The plot - behind the film, that is - only thickened.

The original producer fled the country after his business got caught up in a peer-to-peer lending scandal, leaving director Xiao Feng, who retold the story of Willis’ hotel deposit on his blog, to tap his own savings to finish the film.

Then Fan Bingbing, one of the top Chinese stars in the movie, went missing after becoming embroiled in a tax-evasion scandal that shook the industry.

Despite all that drama, the movie opened in select theatres in the United States last Friday through a partner of distributor Lions Gate Entertainment Corp.

In China, it is unclear whether the most scandal-plagued film in recent memory will be able to capitalise on the publicity - even if it was negative. It was supposed to debut in China on Aug 17, but the release was then postponed to last Friday before it was pushed back indefinitely.

The movie’s initial producer Shi Jianxiang had other problems as well.

In 2016, he seemed to hit pay dirt when Ip Man 3 (2015), a gongfu drama he backed starring Donnie Yen and Mike Tyson, had some success in theatres.

The problem was the movie’s box-office figures were found to have been inflated, which led shares in companies affiliated with Mr Shi to crater.

Mr Shi also ran peer-to-peer lending operations under his Shanghai Kuailu Investment Group, which failed to pay investors. As scrutiny over that business intensified, he fled the country with Air Strike still in production.

Last month, prosecutors told a Shanghai court that Mr Shi’s companies illegally raised more than 40 billion yuan (S$8 billion), according to the Shanghai government-run Xinmin Evening News.

Then there’s the tax scandal surrounding Fan, one of China’s highest-paid actresses.

Her woes began when a former talk-show host posted contracts on his social media feed that allegedly showed the actress had concealed some of her income.

Fan then disappeared from public view. After months of speculation in China, she reappeared only after the government said she had been found guilty of under-reporting income - including from Air Strike.

Tax authorities imposed one of the biggest fines in China’s entertainment industry. Fan apologised publicly and agreed to cover her fines and back taxes.

It is unclear how the incidents involving Fan and Mr Shi would have affected the box office of Air Strike in China had it opened there as scheduled.

But one thing is certain: Chinese moviemakers will draw lessons from the film’s scandals.

“China’s film industry is still undergoing a rectification that will last well into 2019,” said Dr Stanley Rosen, a University of Southern California political science professor who studies China.

And the bottom line…

If Fan plays her cards right, she could parlay this into an international career boost. She’d probably have to leave PRC to do that though.

Oct 31 2018 at 10:48 AM
Updated Oct 31 2018 at 4:07 PM
Swisse China sales jump despite ambassador Fan Bingbing tax strife


One of China’s most popular actresses Fan Bingbing, an ambassador for the Swisse brand, was in serious hot water with Chinese tax authorities. AP

by Simon Evans

The Swisse vitamins brand has shrugged off the tax scandal which enveloped one of its high-profile ambassadors in China, actress Fan Bingbing, with robust demand for its products lifting total revenues by 41 per cent in the three months ended September.

Swisse has also made solid headway in the Australian market, with the company saying its market share in vitamins and mineral supplements had increased to 18.9 per cent over the past year, up from 16 per cent as sales gathered pace in the big supermarket chains of Coles and Woolworths. Swisse is the major competitor to ASX-listed Blackmores.

The Swisse business has been owned for two years by Hong Kong-listed Health & Happiness International, which has just reported a fresh set of sales revenue figures to the market.

Health & Happiness chairman Luo Fei said the Swisse China business “continued to demonstrate vigorous growth through new product launches and the leverage of comprehensive branding and marketing campaigns and collaborations with new celebrities and key opinion leaders”.

He didn’t mention Fan, an ambassador for Swisse, who in early October resurfaced suddenly after China’s tax authorities announced she had agreed to pay back almost 800 million yuan ($162 million) in fines and back taxes.

While she avoided going to prison, Fan was forced to issue a grovelling apology to her millions of fans on social media, saying “I’m so ashamed of what I’ve done”.

Fan, China’s most highly paid actors, had been missing since allegations she had avoided paying taxes triggered a government investigation three months ago. It has been unclear if she was detained by authorities or went into hiding voluntarily to escape public attention.

Mr Luo said two new product ranges, Swisse Ultinatal and Swisse Lifestyle, had been launched to capture momentum in two of the fastest-growing segments of the vitamins market.

Revenues in the adult nutrition and care products division, which is basically the Swisse business, climbed by 40.8 per cent to 1.26 billion yuan from 894.7 million yuan. In Australia, Swisse sales have been particularly strong in the supermarket channel, through Coles and Woolworths. Swisse Australasian sales director Nick Mann said new product lines in the grocery range along with extra promotions had helped spur strong growth in that segment, while the pharmacy market was also strong. “Sales in Chemist Warehouse continue to grow at double-digit pace,” Mr Mann said.

For the nine months ended September 30, revenues from the Swisse business increased by 29.3 per cent. Mr Luo said the strong momentum was mainly achieved by the rapid growth in the China market, while the Australian market continued to “grow steadily”. Swisse uses other ambassadors, including actress Nicole Kidman and former Test cricket captain Ricky Ponting.

Last week, Blackmores announced that shifts in the daigou market in Australia, where big retailers like Chemist Warehouse were doing deals directly with the entrepreneurs selling large volumes of vitamins on e-commerce sites in China, and a step up in advertising in Australia had helped its Australian business gain extra momentum.

The country’s biggest vitamins company lifted revenues by 15 per cent to $154 million in the three months ended September 30, while net profit after tax increased by 7 per cent to $16.5 million, as chief executive Richard Henfrey said Australian sales were up by 19 per cent. Blackmores hired Chinese actor Shawn Dou as a new ambassador in China last week.

Health & Happiness in February 2017 acquired the remaining 17 per cent of Swisse that it didn’t already own. It was the second step in a two-phase buyout for a total of $1.7 billion in late 2015 when demand for “clean and green” Australian vitamins soared and pushed rival firm Blackmores to a record share price on the ASX of $220 in January 2016. Blackmores shares are now at $123.

Health & Happiness in November, 2017 spent $131 million to regain full control of the brand in a buyout of a distribution deal struck in 2013 with two global giants, Procter and Gamble and Israel’s Teva Pharmaceuticals for Asia and Europe in which it would have given up a large chunk of future profits in the booming China market from 2020.

Top Gun knock-offs

Column by Nicolas Groffman
Top Gun was twice remade in Chinese, why didn’t anybody notice? Clue: PLA
Chinese fans loved the original so much there just had to be a remake. But, writes Nicolas Groffman, that’s when the military got involved
PUBLISHED : Monday, 29 October, 2018, 8:02am
UPDATED : Thursday, 01 November, 2018, 4:41pm
Nicolas Groffman

In the summer of 1986, my friend Charles and I saw a trailer for the most amazing film conceivable, with F-14s landing on carriers.

They crashed down amid the steam in super-modern all-grey livery. The film came out a few months later and only those with large reserves of intellectual snobbery failed to enjoy it. It was Top Gun.

In mainland China and Hong Kong, the movie was called “Zhuang Zhi Ling Yun”, a good metaphorical name implying reaching for the clouds. It is a perennial favourite in China, and many know the movie scene by scene, as became apparent when in January 2011 the PLA Air Force released footage of aerial combat exercises, including a scene of a successful attack on a drone.

Except it wasn’t.

It was a clip from Top Gun. Chinese internet users spotted this immediately, exposed the trick, and humiliated the air force, which removed the clip from its website and presumably told off whoever was responsible – but the seed of an idea had been planted. China must have its own Top Gun!

The 2017 film Kong Tian Lie, or Sky Hunters, which stars Fan Bingbing and her boyfriend Li Chen, was billed as being the first movie to have the full cooperation of the PLA Air Force. It was not.

That honour goes to Jian Shi Chu Ji, or Sky Fighters, released in March 2011. It did not get good reviews from ordinary cinema-goers, because it managed to strike that special blend of cliché and tedium that robs even potentially exciting situations of all passion.

You would think that filming J-10s in dogfight sequences would inevitably be thrilling.

But all suspense is removed; no one is ever in danger for more than 30 seconds, and scenes of the inquiries into dangerous flying last longer than the scenes of the actual dangerous flying.


Top Gun is a perennial favourite for many Chinese film-goers. Photo: Alamy

Sky Fighters does however have moments of comedy. At a press conference for obsequious civilians, the film’s hero, General Yue, answers a foreign woman who throws him a tricky question. “You are the bravest pilot I have ever seen,” she says, “but what do you think of George W Bush?” to which Yue replies, “I’m better than him, because he can’t speak Chinese, and I’m a better pilot.”

He also explains to another foreign reporter that “war is best avoided, but if it comes, it is better to be prepared”. The reporter is at first surprised but then nods as he slowly comprehends these sage words.

Other reviews of this film have noted its scene-by-scene mimicking of Top Gun – granted it has a motorbike-along-the-runway scene, and it has the two male protagonists at odds who are reconciled at the end.

But it’s definitely a movie in its own right – and one which is old-fashioned and uncool. It even has a scene where the general’s wife sneaks up behind her husband and covers his eyes to make him guess who she is, while he pretends to run through a list of other girls. What comedy!

Chinese people of a certain age will remember a popular song from 1991 with lyrics describing a similarly annoying event and a man who guesses Mary, Sunny, and Ivory.

Come on, air force guy who wrote the script for the 2011 movie. You had 20 years to think of something new. Even the bar scene seems struck in the 1990s, with people ordering coffee as if it’s a new invention, and there are fruit bowls holding cherry tomatoes and bananas. Very KTV.

Weirder still, when they move to a new base, the commander hands over a bag of “feminine products” to the two female officers. I’m not making this up. The women are delighted, of course.


The 2011 Chinese film Sky Fighters flopped. Photo: Handout

Cut to 2017 and the much flashier Sky Hunters. The heroes are too cool even to wear proper air force uniforms, having been issued with sunglasses and leather jackets. In the six years that have gone by, Chinese studios have learnt to flash cash and get Hollywood bigshots on board.

They have Hans Zimmer for the score; they have the guy who did the computer-generated effects for Game of Thrones; they have lots of foreign extras.

Sadly, however, the PLA, once again, insisted on controlling the script and the production. And once again, they drained it of any real suspense or innovation.

At one point the movie makers seem to realise this – when a Chinese fighter inverts above a US spyplane, the pilot yells, “I think I’ve see this in a movie somewhere.”

Of course he has – it’s from the first five minutes of Top Gun.


China’s J-10 fighters take a starring role in both films. Photo: Handout

But instead of having the foreigners spout nonsense as in the 2011 film, the Americans say things that sound Hollywood-like – “He’s cute. Cuter than you,” says the female spy-plane crew member to her male colleague, referring to the hero Li Chen.

And – I’m not sure if this is meant to be a joke – Islamic State-style terrorists have one member who roars pointlessly when angry and looks like a comedy version of BA Baracus.

Fan Bingbing doesn’t have much to do in this movie, but she has a key role in its most idiotic scene.

The hero is thought to have perished, and so she stands alone on the runway – until … oh, why are there hundreds of people running behind her with happy faces? What have they seen? She turns and sees his smoking damaged plane is limping towards them through the grey sky.

Her expression turns to joy as she realises he has survived. Meanwhile we, the audience, wonder why so many people are celebrating before he has even landed.

And indeed how can he land with the entire cast – and extras – cheering and dancing jigs in his flight path?


Li Chen starred in Sky Hunters, but the air force insisted on having the final say. Photo: Handout

The film has its good points. It’s interesting to see all those new Chinese aircraft: the Y-20 airlifter, the J-20 stealth fighter and the H-6, as well as the J-10s and J-11s that we saw in Sky Fighters.

Li Jiahang is excellent as the dopey pilot who is taken hostage. And Tomer Oz, an Israeli actor sporting an Islamic-looking beard, is weirdly menacing as a Central Asian air force veteran who becomes a terrorist boss. And there’s a parachuting scene with a German shepherd dog which is just plain fun.

Chinese film-goers, not known for their polite reviews, generally panned the film.

It got two stars on Douban.com. About the most positive review was titled, “Is Sky Hunter so awful that you can’t watch it?” concluding generously that it wasn’t.

People were particularly rude about Fan Bingbing, of course, but it’s hardly her fault the movie was no good.

No one was bold enough to blame the military for meddling in the movie, but that is probably why Top Gun succeeded back in 1986 while Sky Hunter fails.

In 1986, the US Navy supported the movie studio but was smart enough not to tamper with the story and the production.

In China, the military made the movie, and expected everyone else to do as they were told. The result was what you’d expect from the military: discipline, technology, and no freedom of expression. Perhaps the 2023 version, which I predict will be called Sky Warriors, will be better.

Nicolas Groffman, who practised law in Beijing and Shanghai, is a partner at law firm Harrison Clark Rickerbys in London

THREADS
Where in the world is Fan Bingbing?
Chinese Counterfeits, Fakes & Knock-Offs

China’s cheerleader

Of course she’s pro-PRC now. Who knows what she went through during her disappearance? Now that she’s back, she’ll surely toe the party line.

Fan Bingbing is cheerleading for China over the South China Sea after the government disappeared her
Alexandra Ma 34m


A composite image showing Fan Bingbing before her disappearance, and the image she re-shared on social media, asserting Chinese dominance over the South China Sea and Taiwan. Getty Images/Weibo/Business Insider

China disappeared actress Fan Bingbing for three months earlier this year when she was accused of tax evasion.

She reappeared last month with a groveling apology to the Chinese government.

Over the weekend she published a post touting China’s controversial claims to the South China Sea and Taiwan.

It marks a striking conversion for Fan from pariah to effectively being a mouthpiece for China’s geopolitical ambitions.

Actress Fan Bingbing wrote a post touting China’s controversial territorial claims to the South China Sea, in her first appearance on social media since issuing a humiliating apology to Beijing for evading tax.

The actress disappeared from the public eye for three months earlier this year after she was accused of tax evasion. She broke her silence in early October with a groveling message to the Chinese government, which found that she signed a secret contract to avoid paying her taxes.

On Saturday the actress published her first post since the apology on popular microblogging site Weibo, which featured a map posted by China’s Communist Youth League of the country’s mainland, Taiwan, and a demarcated South China Sea with the Chinese flag imposed on it.

Fan added the caption: “China, without a bit missing!”


A screenshot of Fan’s Weibo post.Fan Bingbing/Weibo

China controversially claims to own both the South China Sea and the self-governing island of Taiwan.

China, Taiwan, Brunei, Malaysia, Indonesia, the Philippines and Vietnam all have claims in the South China Sea, many of which overlap. About $3 trillion of shipborne trade passes through the area every year, making it a major economic and strategic prize.

Beijing’s claim to the South China Sea is marked by a dashed line, as can be seen in Fan’s post above. The more complicated web of territorial claims can be seen in this map:


A map showing the overlapping claims in the South China Sea. Reuters

China is extremely defensive of its territorial claims in the sea. After a British warship sailed through waters claimed by China in September, the state-run China Daily warned that it could derail a future UK-China trade deal over the slight.

Last week US Vice President Mike Pence told Southeast Asian leaders that the South China Sea “doesn’t belong to any one nation,” and reportedly flew through the area in a move that likely riled Beijing.

Beijing also insists that Taiwan is part of China, even though the island nation has been self-governing for decades and considers itself an independent nation.

Taiwan claims that China uses economic partnerships to pressure countries to cut off diplomatic ties with it.

$1.7 b

Well, that’s a good chunk of change. Curious who paid out.

JANUARY 22, 2019 9:04PM PT
Chinese Stars, Entertainment Companies Pay $1.7 Billion in Back Taxes
By PATRICK FRATER
Asia Bureau Chief


CREDIT: INVISION/AP/SHUTTERSTOCK

Chinese film and TV stars and entertainment companies have forked over an additional $1.7 billion (RMB11.7 billion) in taxes in the wake of last summer’s scandal surrounding actress Fan Bingbing and a subsequent government crackdown. The figure was announced late Tuesday by China’s State Tax Administration.

Chinese authorities launched a probe into the tax affairs of the entertainment sector last October. Companies and individuals were asked to examine and, if necessary, correct their post-2016 tax payments by the end of December. Those who complied would be exempt from penalties for tax evasion, the tax administration said.

In July last year, Fan was accused of hiding a proportion of her income from a film production through the use of multiple contracts, only some of which were declared to the tax authorities. It also emerged that she had set up companies in various Chinese provinces that offered lower tax regimes.

In October, after vanishing from public view for months, Fan resurfaced. She apologized and was ordered to pay $130 million (RMB884 million) in back taxes and penalties on behalf of herself and her companies.

The huge amount collected from other stars and entertainment firms – the figure is roughly equal to 20% of China’s gross box office last year – reinforces the argument that the use of double contracts and tax loopholes was widespread throughout the Chinese industry. The number of productions initiated in China slowed sharply from last summer as production companies and talent reassessed their financial situation and relationships.

“Industry workers should practice socialist core values…and strive to be entertainment workers with belief, empathy and sense of responsibility in the new era,” authorities said, according to state news agency Xinhua.

More fallout

FEBRUARY 14, 2019 4:27AM PT
China’s Web Series, Online Films Required to Register, Report Actor Fees
By REBECCA DAVIS


CREDIT: ALVARO BARRIENTOS/AP/REX/SHUTTERSTOCK

Most web series and online films in China must register with the government and report their budgets and actor salaries starting from this Friday, the country’s media watchdog has decreed, in a further tightening of official oversight of the entertainment sector amid an uproar over talent pay.

All live-action and animated series intended for online distribution with budgets of more than RMB5 million ($740,000) and all online movies with budgets exceeding RMB1 million ($148,000) must now register and pass approval twice before they are disseminated to viewers, China’s National Radio and Television Administration (NRTA) declared in a December directive posted Wednesday to its official website. Companies must report their project’s title, genre, content and budget before production begins, and provide an update on information including actual expenses and actor pay after completion. The new regulation goes into effect Friday.

Nearly all substantive online content projects will be affected since the budget cutoffs are quite low. Even mediocre web series cost about RMB1 million to create, a Beijing-based production company associate told the Global Times newspaper.

The measure is a follow-up to regulations on tax payments and actor salaries released last year, and shows that Chinese authorities are policing online content with equal attention as traditional TV and film production.

In the wake of last year’s tax-evasion scandal involving superstar Fan Bingbing, authorities set a cap on actor salaries, stating that talent fees cannot exceed 40% of a project’s total production costs and that leading stars cannot be paid more than 70% of a work’s budget for talent. Fan had been slammed for the widespread practice of using “yin-yang contracts,” in which only the smaller of two contracts drawn up for the same work is reported to the tax authorities as income.

The new regulation on web content is part of China’s growing effort to crack down on skyrocketing celeb fees. “Government regulation will re-balance the market that has been troubled by star worship over artistic appreciation,” the Global Times cited an industry insider as saying, though he stressed that it would take a long time before yin-yang contracts were actually be stamped out.

Chicoms tax the rich and regulate that. Interesting concept.

Paying the price for scandals

Scandal-Ridden Stars Must Compensate Studios for Money-Losing Films, Delegates Say
By Liu Shuangshuang, Shan Yuxiao, and Zhao Runhua / Mar 12, 2019 11:55 AM / Politics & Law


Fan Bingbing. Photo: VCG

A scandal in China could ruin a celebrity’s career — and a company’s business.

In 2018, star Fan Bingbing’s tax evasion scandal emerged. Soon after, the fiscal revenue and profit of Talent Television and Film, a producer behind Fan’s film “Legend of Ba Qing (),” dropped dramatically.

Talent Television and Film said that the company failed to profit because no partners were willing to screen Fan’s film, for fear of being blamed for giving limelight to an alleged law-breaker.

One famous screenwriter, who is also a CPPCC delegate to China’s highest-level annual meetings going on this week, drafted a proposal with 30 other delegates to establish a “celebrity blacklist” to protect lawful interests of companies like Talent.

Zhao said that “celebrity scandal risks can be hard to predict. This could bring significant loss to investors, and will affect other innocent actors and actresses.” She added that it’s unfortunate that TV series and films starring such celebrities will often be “killed” permanently by the industry to avoid audiences’ boycotts.

The celebrity blacklist would keep records on scandal-involved celebrities, and allow further punishment decided by the industry and legal departments. This includes setting up an industry rating system to evaluate the seriousness of a celebrity’s scandal.

The proposal also advocates that a TV series or film starring a scandal-ridden celebrity might be prohibited from being screened, but for no more than six months. Zhao said the proposal will allow investors to demand material compensation from the celebrities.

Interesting strategy. I do think celebrities should take more responsibility for their scandals.

caught

APRIL 2019[URL=“https://www.vanityfair.com/hollywood/2019/03/the-untold-story-disappearance-of-fan-bingbing-worlds-biggest-movie-star”]
“The Big Error Was That She Was Caught”: The Untold Story Behind the Mysterious Disappearance of Fan Bingbing, the World’s Biggest Movie Star
NOW YOU SEE HER
Fan Bingbing at the Cannes Film Festival’s opening gala in May 2018. The following month, she disappeared from public view.
She vanished without a trace last year. But it was what happened next that sent a shudder through the Chinese film industry.
by MAY JEONG
MARCH 26, 2019 9:00 AM

Fan Bingbing has been mostly staying at home these days, sending messages on WeChat (the Chinese WhatsApp), working on her English, receiving guests, doing charity work “to wash away her sins,” and otherwise “trying to stay positive,” according to a producer who knows her well. But before the events of last spring, when she abruptly disappeared from public view for three months, she was busy being the most famous actress in China, which is to say, the most famous actress in the world.

Fan is China’s highest-paid female star, with a net worth estimated at $100 million. Her 62.9 million followers on Weibo, China’s Twitter, rivals the total membership of the Communist Party. Among her fans, her classical “melon seed” face—widely viewed in China as a Platonic ideal of beauty—has inspired countless acts of copycat surgery. She is often described as baifumei, a phrase meaning pale-skinned, rich, and beautiful. “The rules of Chinese beauty are rigid, and she follows them,” says Elijah Whaley, a market researcher who specializes in China. Fan has been the face of Adidas, Louis Vuitton, and Moët, selling everything from lipstick to diamonds. They say you can’t take a good selfie with her, because she will suck all the beauty away. Her fame has caught the attention of Hollywood: This year, after appearances in the Iron Man and X-Men franchises, she was slated to begin filming an international spy thriller alongside Jessica Chastain, Marion Cotillard, Penélope Cruz, and Lupita Nyong’o.


Fan Bingbing in a dress, smiling
THE FACE OF CHINA
Fan at a Cannes screening in 2018. At nearly 63 million, her social-media following rivals the total membership of the Communist Party.
By Mike Marsland/WireImage.

The trouble began last year, on May 28, when Fan was flying to Los Angeles with her retinue (including a friend who reportedly got work done to look like her). On Weibo, a famed TV host named Cui Yongyuan posted two versions of Fan’s contract for an upcoming film titled Cell Phone 2. One put her salary at $7.8 million; the other at $1.5 million. The implication was clear: Fan had fraudulently declared the smaller sum to the Chinese tax authorities, to avoid paying taxes on the rest. The contracts were redacted in parts, but you could still make out a faint trace of the famous Fan name.

At first no one thought anything of it. For starters, everyone knew that Cui, a household name in China, had an ongoing feud with the makers of Cell Phone 2. (The film was a sequel to Cell Phone, China’s highest-grossing movie of 2003, which starred Fan as the mistress of a character who bore a striking resemblance to Cui.) Besides, the hiss of gossip always trails stars like Fan. If you were to believe the Hong Kong tabloids, Fan’s brother Chengcheng is actually her illegitimate son. (They are 19 years apart.) Fan was said to have gotten her upper lip surgically enhanced, her chin shaved, the fat from her thighs removed. She was dating this rich guy. No, she was dating this other rich guy. In fact, there was a set price for a night with her: 2 million yuan, or $300,000. It said so in a booklet that supposedly lists the going rates of all other A-list actresses.

So there was every reason to think that the ado over Cell Phone 2 would come and go, just like any other celebrity gossip. But 12 hours later, when Fan landed at LAX, the world seemed to have turned against her.

Fan was born after the death of Mao Zedong, and has lived her entire life governed by the go-go brand of capitalism introduced by his successor, Deng Xiaoping. At 37, she belongs to the first generation that had been allowed to amass private wealth under the informal slogan “Let some people get rich first.” Still, with many Chinese earning pre-reform salaries of less than $10,000 a year, fans were shocked to learn how much Fan could command for only four days of work. “Most people were astonished,” says Ming Beaver Kwei, who produced the Fan vehicle Sophie’s Revenge. “People knew she made money, but they didn’t know it was that much money.” Even worse, Fan had tried to shirk her civic duty by trying to keep most of her morally suspect gains for herself.

Fan’s production company immediately issued a statement denying the charges and informing Cui that they had retained the services of a Beijing law firm. Cui apologized to Fan and retracted his accusation. But by then it was already a national scandal. A week later, on June 4, the central tax authorities deputized the local tax bureau in Jiangsu, the coastal province where Fan’s company was registered, to launch an investigation. Shares of companies associated with Fan plunged by 10 percent, the maximum daily limit on the Chinese stock market. Three days later, Chinese censors banned all stories on the Internet about taxes, films, and Fan.

The movie industry at large also fell under scrutiny. On June 27, five government agencies, including film and tax authorities, issued a joint directive capping salaries for on-screen talent at 40 percent of a movie’s total production budget. Individual stars, meanwhile, would not be allowed to earn more than 70 percent of a production’s total wages for actors. The notice chastised the industry for “distorting social values” and encouraging the “growing tendency towards money worship” through the “blind chasing of stars.”

At first, Fan tried to maintain her normal routine. She attended a Celine Dion concert, made a trip to Tibet for charity, and visited a children’s hospital in Shanghai. Then, in the first week of July, she canceled a meeting with a production company, informing them that she had been placed under house arrest.

One night, amid the scandal, Fan went out to dinner with her best friend, the director Li Yu. As they were driving home, Li recalled, Fan reached for her hand and held it tightly. Li was surprised: Fan had never done that before, through their four movies and 12 years of friendship. Fan didn’t say anything, because she herself didn’t know what lay ahead.

Two days later, Fan Bingbing, the most famous woman in China, whose primary job is being seen by the public, vanished without a trace.

It is hard to convey Fan’s appeal, because there is no star in Hollywood quite like her. She combines the glamour of Nicole Kidman, the sunniness of Julia Roberts, the pluck of Jennifer Lawrence, and the box-office draw of Sandra Bullock. In Beijing, she is the literal girl next door: nearly everyone I met claimed to be her neighbor. A lawyer told me that her house was next to his at Star River, a gated community protected by razor wire. An actor said he often saw her black S.U.V. parked in front of his apartment building.

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Fan’s fiancé. director Li Chen, with Fan
FEAR AND RUMORS
After Fan disappeared, Internet sleuths noticed that her fiancé, director Li Chen (left), appeared in a video without his engagement ring.
From VCG/Getty Images.

Fan was raised in the port city of Yantai, overlooking the Korean Bay. Her grandfather was a general in the naval air force, and her grandmother gave her the Chinese character bing, or “ice,” to honor the family’s ties to the sea. Fan grew up watching her father, a pop singer, perform at regional competitions. Her mother was a dancer and an actress. Both were party committee members and served as cadres in the cultural division of the local port authority. When Fan’s middle-school teacher suggested she take up music, they bought her a piano and a flute. The family was poor. Young Fan knew this: when she was in a car crash, at age 14, the first thing she did was try to protect the flute. (She still has it to this day.)

Fan spent the next three months recuperating in a hospital, where she watched a Taiwanese drama about Wu Zetian, a consort who rose to become empress during the Tang dynasty. Empress Wu gave Fan the dream of becoming an actress. (Twenty years later, she would produce and star in a TV series about Wu.) She entered a performing-arts school in Shanghai, where she was the youngest of 40 in her class. Sharing a tiny room with seven other students, she struggled to get by on a monthly allowance of $60. On rough days, she sustained herself on a single meat bun or bowl of beef noodle soup.

Through a school play, Fan met a producer who cast her as a chambermaid in an 18th-century costume drama. My Fair Princess aired in April 1998, when Fan was 16 years old. The show became a cultural phenomenon and catapulted her to stardom.

Because Fan has been China’s sweetheart for two decades, younger fans feel as though they have grown up alongside her, a sort of Emma Watson for Chinese millennials. A Chinese-language student told me she learned Mandarin by watching Fan in My Fair Princess. Another showed me a photo of a crane-pattern dress she had ordered on Taobao (the Chinese version of eBay), a knockoff of what Fan wore to Cannes.

Nearly all of the people I spoke with who had worked with Fan—English teachers, dialogue coaches, designers, lawyers, film executives, producers, directors, and fellow actors—told me she was kind, and impossible to hate. “She so much cares about the people working for her and treats them really well,” said Fang Li, who has produced several of Fan’s films. “Not many actresses are like Fan Bingbing. She is so strong, spiritually. She can take a lot of pressure, and still smile.”

Daniel Junior Furth, who taught English to Chinese actors, called Fan “ultra-kind and pleasant.” Even though she was always surrounded by people he felt were more important than he was, Furth said, Fan made sure he “never got that sense of being neglected or put off to the side, which is rare in a society that is so hierarchical.” Once, she called him up to say she had front-row tickets to a play at the national theater. Would he like to come? Afterward, she asked her driver to take Furth home. “There was no stunt about it,” he recalled. It was just a nice thing that Fan had done.

Fan is also, by all accounts, a very hard worker. She runs her own acting school, production company, and cosmetics line, sleeping only four hours a night. Kwei, the producer, recalled a rock-climbing sequence Fan shot for Sophie’s Revenge. Fan showed up with a raging fever. Kwei offered to reschedule. Fan said no, they should keep going. She was O.K. to climb, she said, but they would have to dub her voice in post, because she was too ill to speak. “We worked through the night,” Kwei told me.

In 2015, a reporter asked Fan whether she was going to follow custom and marry rich. “I don’t need to marry rich,” she replied in a now oft-repeated rejoinder. “I am rich.” (“People were like, *****, wow,” a young fan recalled.) Her brashness earned her the nickname “Fan Ye”—something akin to Master Fan, a title usually reserved for men. “She is like a strong man inside,” said Fang, the producer. “But outside she is like a pretty girl.”

Fan’s image as the country’s kindest, hardest-working actress only made her sudden disappearance that much more surprising—and terrifying—to the film industry in China. In the month after she was engulfed in scandal, shares in publicly listed movie companies in China fell by an average of 18 percent.

Last summer, after Fan stopped appearing in public and posting on social media, the entire world began speculating about her whereabouts. On August 28, Fan’s fiancé was seen in a promotional video without his engagement ring, and the Internet drew its own conclusions. Five days later, unverified tweets claimed that Fan, after seeking counsel from Jackie Chan, had landed in Los Angeles to request asylum. Chan quickly denied the rumor that same day. Fan’s birthday, September 16, came and went. Montblanc dropped her as brand ambassador. So did Chopard and Swisse, an Australian vitamin company.

Then, on October 3, Fan reappeared as suddenly as she had vanished. According to the South China Morning Post, she had been held under a form of detention known as “residential surveillance,” at a holiday resort in a suburb of Jiangsu. The system was instituted in 2012, under President Xi Jinping, making it legal for the Chinese secret police to detain anyone charged with endangering state security or committing corruption and hold them at an undisclosed location for up to six months without access to lawyers or family members. Sources close to Fan told me that she had been picked up by plainclothes police. While under detention, she was forbidden to make public statements or use her phone. She wasn’t given a pen or paper to write with, nor allowed any privacy, even when taking showers.

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