Disney May Have to Pull Out of China as Tensions Rise

Disney CEO Bob Iger has some important classified meetings to move forward with in relation to China.

Inside the Magic recently shared reports that The Walt Disney Company CEO Bob Iger will participate in a confidential meeting on China with bipartisan lawmakers alongside top executives from major companies like Apple, Microsoft, and more in Hollywood and Silicon Valley this week.

According to sources, Rep. Mike Gallagher (R-WI), who chairs the newly-established House Select Committee on Chinese Communist Party, will be in charge of the discussion. While ten other lawmakers from both parties are expected to participate, the specifics of the conversation will be kept confidential.

The group is anticipated to explore strategies not only for safeguarding against China, but also for competing with Chinese firms in their particular fields, with a significant emphasis on Artificial Intelligence (AI). An assistant informed Axios that the gathering has no legislative plans, but rather seeks to gain insight from the Disney CEO and other attendees on the nation’s stance.

While the conversations will remain private, it has led some to speculate on what the future might hold for The Walt Disney Company in China. Disney’s relationship with China has been complicated and evolving over time. On one hand, Disney has long viewed China as a significant market opportunity for its movies, theme parks, and merchandise, given the country’s massive population and rising middle class. However, the Chinese government has also been known for its strict regulations and censorship policies, which have at times, put Disney in a difficult position.

In recent years, Disney has made significant efforts to expand its presence in China, including building a multi-billion dollar theme park in Shanghai that opened in 2016. However, even that project faced delays and complications due to regulatory hurdles and concerns about intellectual property rights.

Disney has also faced criticism for its dealings with the Chinese government, particularly when it comes to censorship. For example, in 2019, Disney’s live-action remake of Mulan was criticized for filming in the Xinjiang region of China, where the government has been accused of human rights abuses against Uighur Muslims. Additionally, the film’s star, Liu Yifei, sparked controversy by expressing support for the Hong Kong police during pro-democracy protests in the city.

With tensions continuing to rise between the U.S. and China, and Disney layoffs of more than 300 employees in the streaming industry already happening in China, there are some who speculate the company may begin pulling back out of the country. This isn’t to say that Shanghai Disney Resort or Hong Kong Disneyland (which is a sovereign territory of China but not governed as mainland China) would ever close. But, what it may mean is that, when Disney does expand its footprint, it looks to other countries and territories, rather than moving forward in China.

When there are more streaming jobs in the future, these might be given to residents elsewhere. However, nothing has been confirmed as Bob Iger and The Walt Disney Company as a whole has remained silent on the issue.