Robert Downey Jr. Becomes Part of Controversial Taiwan-China Court Case

Variety Home Film News Bizarre Robert Downey Jr. Deal Offer, Beijing Plot to Buy Taiwan‘s Only Broadcast Network: A Hollywood vs. China Case Heads to Court

By Tatiana Siegel

Back in 2019, “Iron Man 3” production executive Chris Fenton filed a lawsuit against his former employer DMG Entertainment, a Hollywood-Chinese distribution company, alleging breach of contract and promissory fraud. The lawsuit is finally going to trial next week, shedding light on the opaque ways China did business in Hollywood and raising questions about the future of China‘s influence in the global film industry.

The Case

Fenton’s lawsuit claims that the founders of DMG Entertainment, a company once valued at $5 billion, cut him out of money generated by a 2014 initial public offering and subsequently mismanaged the company. According to Fenton, he raised concerns about the company’s practices in 2018 and was subsequently fired from his position as motion picture head. The company’s stock price dropped, and it was eventually delisted from the Shenzhen stock exchange.

In recent months, details of the case have become public, including DMG’s alleged scheme to boost the stock price of an affiliate company through bizarre deals offered to A-list actors like Robert Downey Jr. and producer Neal Moritz. Downey Jr. was proposed a deal in which he would pay $20 million annually for three years in exchange for a later payment of $90 million, with $36 million paid upon execution. Similar deals were proposed to Moritz. The suit also alleges that DMG founders Dan Mintz, Bing Wu, and Peter Wenge Xiao borrowed hundreds of millions of dollars secured by DMG stock and used the funds for personal purchases such as a mansion, a private jet, and luxury vehicles.

The Chinese Influence in Hollywood

The lawsuit also reveals disturbing aspects of Chinese influence in Hollywood. It is alleged that Chinese officials, including former China Film Group head Han Sanping, took bribes from DMG and that DMG founders used offshore entities and surrogates to control their shares in the company. Furthermore, to release “Iron Man 3” in Chinese theaters, DMG had to comply with China Film Group’s mandates, including casting Chinese actors, using Chinese production crew, and incorporating Chinese script elements. This raises questions about how Chinese influence may have shaped Hollywood films and the extent of self-censorship within the industry to appease the Chinese market.

The Future of U.S.-China Relations

The trial comes at a time of heightened tensions between the United States and China. With President Biden’s administration expressing support for Taiwan and vowing to defend it against a Chinese invasion, the sentiment towards anything China-related could potentially play in Fenton’s favor. The outcome of this case could have broader implications for how Hollywood studios and talent navigate their relationships with China moving forward.

Conclusion

As the Fenton v. DMG case heads to trial, it brings to light the murky practices of Chinese companies operating in Hollywood and raises questions about their influence in the global film industry. With allegations of bribery, mismanagement, and the erosion of creative autonomy, this case exposes the challenges faced by Hollywood stakeholders and the need to reassess the relationship between the two superpowers. The trial’s outcome will undoubtedly have repercussions on the future of U.S.-China relations and could shape Hollywood’s approach to the Chinese market.

This article was based on a news report by Tatiana Siegel for Variety. The opinions expressed in this article are solely those of the author.