China Limits Entertainment Investments

China said foreigners could not wholly own entertainment businesses, a move that could cool overseas investors’ interest in theme parks and movie theaters. The new regulations, which take effect July 1, expressly forbid wholly owned foreign projects, according to a copy of the laws published by New China News Agency. Other items among the 47 clauses of the public entertainment law ban drugs, prostitution, anti-national activities and violence at places of public entertainment. The laws come as top U.S. entertainment industries such as Walt Disney Co. have shown new interest in China’s huge potential market. Last month, officials in Shanghai urged Disney to build a theme park. Earlier this week, Jack Valenti, chairman of the Motion Picture Assn. of America, proposed expanding the number of U.S. films China allows into the country each year and said Hollywood would invest millions of dollars to build theaters. Valenti said China made no pledges in response to the offer.