CRI听力:Animation Industry in Shenzhen

Shenzhen's animation industry began to flourish in the 1990s when China opened its market to the outside world. Since then, Shenzhen has attracted many outsourcing businesses and talents in the animation sector.

Li Mengdi from Silkroad Digital Technology Company Ltd., one of the leading animation manufacturers in Shenzhen, says the innovation industry has been nurtured in Shenzhen.

"Back in 1999 and 2000, there were plenty of opportunities for entrepreneurs in Shenzhen. The city enjoys proximity to Hong Kong and an open market which allows a free flow of resources. These make it a better place than any other city in China to start a business."

But outsourcing didn't last for long. The 2008 financial crisis hit the outsourcing businesses hard with fewer orders from foreign countries.

The market then experienced a tough transitional phase as many enterprises changed their business models.

"The leading animation companies in Shenzhen went through a difficult time when labor costs increased and the economic crisis deteriorated. Some of them changed their focus to original production, and some pulled out of the sector to do other business."

Luckily, the municipal government has been lending a helping hand to these enterprises with preferential policies, like subsidies and tax cuts.

But for small and medium-sized enterprises, the support is not enough.

Yang Dazhi is the founder of Shenzhen Zebra Culture and Communication Company, and now has a staff of 50. He hopes to gain more government support:

"Being a small enterprise, we still create job opportunities and wealth for society. But financial support has gone to the leading enterprises. We want the government to give us more support."

Wang Hui, chairman of Shenzhen Film and Animation Association says the difficulty may not be a bad thing, and she is optimistic about the future:

"After the market tide subsides, those who survived will develop even better. They will explore new ways to expand their animation businesses for multimedia and new technology. Some may even extend their businesses into products like toys."

She says that although the transition is hard, these enterprises still have to go ahead. And original production should be the mainstream and future of the animation industry.

For CRI, I'm Zengliang.