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overseas market is a big challenge. Very few have began the internationalisation practice. For example, by getting experiences from international outsourcing, Fantasia learnt the European animation art style and enriched its design capablility, which eventually let them create anmiation movies tailored for French market. Joint project with Japanese firms also proved to be successful in the case of CCTV anmiation. Another example can be seen from the growth of Case Five company.

Case Five: a way to be internationlised

Since its establishment in 1995, this company has been helping its clients to with applying 3D visualization technology to creative solutions. From establishment, it focus on using advanced 3D softwards and developing

network with clients from differenct industrial sectors. It has now entered into a new era and expanded into such sectors as digital entertainment, culture and education with over 2000 employees. The early stage of the company was to involve in computing effect projects of TV documentary such as 300 episodes ‘Olympic ABC’ (with China Central TV); ‘Imperial Palace’, ‘New Silk Road’, and ‘Rise of Nations’ .

The 3D computing graph technique together with a great passion of participating helped it win the Beijing Olympics project. The eight years of cooperation with the Olympics was a major contributor to the company’s rapid and great growth. In 2008 the digital show in Beijing Olympics openning ceremony made the company known to the world. Its creative design with high quality attracted many overseas clients. Bearing in mind a strong belief of constantly pursuing excellence, it continued to strive for its leading position in the CG industry, by improving both the technology and service, and following higher standards. In China, it set up subsidaries in Shanghai, Hong Kong, and Nanjing, collaborating with local clients from local government, real estate

developers and big conference organiser.

The collaborating with overseas companies including the application of multimedia technology and digital films to help manufacturing enterprises present products, and project companies to present properties With the growth of project, it began to establish subsidaries in Dubai, Tokyo and recently in London. Because of the

experience in Beijing Olymic project, the company demonstrated high quality and talent in 3D design, which let them join the London Olymic project. Now the office in London has 50 employees from both China and UK. Besides project level 3D effect, it is now joining with a UK animation TV producing, and expand business to more sectors of creative media industry.

5. Conclusion

This report presented a governal picture of animation industry in China by providing its key products, development trend, driving forces, and business models. From document and practice review, five emergying issues were discussed, which include clusters, outsourcing, licensing, networking, internationlisation. These f a c t o r s w e r e f o u n d p r e d o m i n e n t i n t h e c u r r e n t s t a g e o f C h i n e s e a n i m a t i o n i n d u s t r y . I n e a c h t o p i c , o n e c a s e w a s

provided for a better understanding from business practice perspective. In the near future, clusters will remain

as a management model and infrastructure support for Chinese animation companies, especially SMEs. More

and more outsourcing compaines are looking for ways to upgrade to OEMs which own brand and can develop character business. International collaboration also starts in some large companies in China.

For further research and study, some potential areas are proposed:

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