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Thread: Disney plans China park — Shanghai proposal gains momentum

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[quote=MARRIE,356445]SHANGHAI, Jan 12 — In a bullish bet amid a weakening global economy, Walt Disney Co. is moving forward on a proposal to build a US$3.59 billion (RM13 billion) theme park in mainland China.

Shanghai Disneyland, which would be one of the largest-ever foreign investments in China, is gaining momentum amid broad economic worries and Disney’s struggles with three-year-old Hong Kong Disneyland.

The media giant and the Shanghai municipal government last week agreed to submit a proposal to the Chinese central government that outlines a jointly owned park, hotel and shopping development on the outskirts of the coastal city.

The move, which faces lengthy approvals and likely revisions, marks a significant step forward after nearly a decade of on-again, off-again discussions. And it comes at a time of new challenges at Disney’s US flagship parks in Orlando, Florida. and Anaheim, California.

Disney has long sought a mainland park for the access to the vast Chinese market that it would offer. The US$37.8 billion media giant will be able to pitch the park as creating 50,000 new jobs amid a cooling Chinese economy.

The downturn has given the park new urgency, according to a person familiar with the situation. “I think it will really fly now given the current economic climate,” that person said.

Still, Leslie Goodman, an executive vice president at Disney’s Parks and Resorts unit, stressed the proposal is preliminary and faces a long road ahead of it.

“As part of this lengthy process, we worked on a joint application report with the Shanghai government which will be submitted to the central government for review.” She cautioned: “No deal has been signed, no project has been approved.”

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