This book explores the global-local interplay through the case study of the People’s Republic of China’s encounter with global Hollywood from the mid-1990s to 2013. It analyzes the changing role of the Chinese state and its evolving cultural policy; investigates the intertwined relationships among the Chinese state, global capital, and local dynamics; and examines the impact of this encounter on the Chinese film sector’s radical transformation from a Soviet-style planned economy and state ownership model to a market-oriented cultural industry. The book asks how this global-local interplay has defined and will continue to shape China’s arduous path toward cultural modernity in a postsocialist era and how this interplay has shaped the international cultural landscape. The book argues that the Chinese state’s ability to adapt and negotiate can reverse the power relationship in global communications. It concludes that the Chinese state has consolidated its authoritarian power by incorporating both market forces and global capital into the state mechanism and by advancing the cultural industries. The state also exercises a strict monopoly and limits free-market competition in the film industry. Through the conscious construction of a national identity and a “spiritual home” by means of the cultural industries, the state aims to build a “Beijing consensus” that features a combined legacy of socialism, nationalism, collectivism, and Confucianism to challenge the neoliberal “Washington consensus.” A postsocialist “unbalanced modernity” has emerged that works to further the party-state’s use of soft power and nourishes new development models and possibilities for China.