Piracy has affected both Hollywood and the local movie industry in China
The US. Trade Representatives accused Chinese search engine Baidu of redirecting Chinese searches to websites that host pirated content. This is a huge problem in China, and China does little to protect intellectual property. I believe Google as well has made a similar accusation, and it is widely known the problems Google has experienced in the Chinese market.
This was released before Baidu eliminated their 2.8 million literary work library for not protecting their intellectual property rights. This is an area of growth that China drastically needs to enhance. Reducing piracy would not only gain China a massive show of face from the rest of the world, but China's creative sphere would dramatically be enhanced.
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