Chinese dramas and films

SM Entertainment has announced a joint venture with Chinese music giant Tencent Music Entertainment Group.

Tencent Music Entertainment Group is a dominant force in China's music industry, often described as the country's answer to Spotify. It operates platforms including QQ Music, Kugou Music, Kuwo Music and WeSing, and is headquartered in Shenzhen, Guangdong province.

SM Entertainment is one of South Korea's largest talent agencies and production companies, representing K-pop acts such as Super Junior, Girls' Generation, SHINee, EXO, Red Velvet, NCT, aespa and others. In 2016, Chinese e-commerce giant Alibaba acquired a 4% stake in SM Entertainment to strengthen cooperation in China's music market.

The two companies have now established a Beijing-based joint venture named STE. Zhou Mi, 40, a member of the Chinese subunit Super Junior-M, has been appointed its chief executive.

SM said: «We established the joint venture following the signing of a memorandum of understanding between SM and TME. This will accelerate the expansion of SM's influence in the Greater China entertainment market».

STE will focus on developing a new Chinese idol group project, with a debut planned in two to three years, and will also hold auditions to recruit artists in China following the group's launch.

The company will also support the activities of SM Entertainment's Chinese artists, including Renjun of NCT Dream, as well as YangYang and Xiao Jun of WayV.

CEO Zhou Mi said: «We will combine SM's strengths in intellectual property and production with the unique characteristics of the Chinese market to deliver distinctive content and achieve meaningful results, serving as a bridge between the two companies».

The so-called «Hallyu ban» — an unofficial restriction on Korean content that has been in place in China since 2016, stemming from disagreements over the deployment of the THAAD missile defence system — remains in effect. Although Beijing has never officially acknowledged its existence, it has severely limited the activities of Korean artists in practice.

With the Lee Jae-myung administration in office in South Korea, bilateral relations have begun to warm noticeably. During Lee's visit to China in early 2026, the two countries' leaders agreed to a gradual and orderly restoration of cultural exchanges, marking the first public signal of a softening in stance in years.

In March 2026, China and South Korea agreed to resume the work of the Intellectual Property Utilization Committee (知识产权运用委员会). The body is tasked with protecting intellectual property rights for Korean music and film content in China, efforts that had previously been frozen due to deteriorating relations.

Large-scale business events such as Korea Content Week (韩国内容周) have already been held in China, attracting numerous local companies and resulting in deals worth millions of dollars.

The launch of the STE joint venture in Beijing is a practical step under the new policy direction. The parent companies aim to develop and produce new content locally, with the involvement of Chinese artists. This strategy would help bypass most restrictions, adapt to local regulations and build a sustainable long-term business.

Zhou Mi's appointment as CEO is a highly symbolic move. With two decades of experience in both the Korean industry and the Chinese market, he is well positioned to serve as a bridge between the two cultures and companies.

In practice, however, challenges remain. Large-scale concerts by Korean performers are still frequently postponed or cancelled due to «circumstances beyond control». For the most part, only smaller local events such as fan meetings are permitted, while major performances are not. Despite the restrictions, Chinese audiences remain highly interested in Korean content.

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