The Chinese central government's approval of Walt Disney Co.'s planned theme park in Shanghai could pave the way for one of the largest foreign investments ever in China, and marks an important milestone for the U.S. entertainment company's effort to extend its brand in the world's most populous nation, especially the timing for U.S. President Barack Obama’s first state visit to China, from November 15 to 18 and his first overnight stop: Shanghai. In his next week’s visit, trade is expected to be a key source of discussion.
It is estimated that Shanghai Disneyland would offer the company a significant presence in a market that, despite its size, has numerous hurdles to the distribution of film, television, music and books for Disney and other foreign entertainment producers.
The Shanghai park, to be located near the city's international airport in the Pudong area, will be much larger and specifically designed with cultural touches meant to appeal to a domestic audience. The land price in Pudong Area and Chuansha District is estimated to bloom splendidly.
But there are still some concerns:

1. Disneyland is generally-recognized as the most expensive project of theme park in the world. What’s more, Shanghai’s project is expected to hit the record high in its project area, with the draft budget of RMB 10 billion. Its low budget and large number of local tourists have earned itself a great advantage, which however doesn’t guarantee its profits in the future. According to the Walt Disney Co.’s report in Q3, due to the global recession, the net profit in its global business is declined by 19%, and the revenue by 9%. A Disney park would bring tens of thousands of jobs to Shanghai, and help broaden its economy; but some commented on the billions of yuan "for a 'happy land,' which is completely useless to the national economy and people's livelihood. Disney Park in Hongkong and Paris, which are in green so far, will have much to say.
2. Shanghai Disney will not only import a world-class theme park, but also its cartoon and entertainment producers, which will give much challenge to the China’s industry of animation and tourism at doorsteps. Although animation industry has made a huge development in China, represented by McDull, XiYangyang and HuiDailang, it still has a long way to go, facing the Titan in the animation industry, Disney. China should more focus on content innovation, branding management and service adjustment.
3. Some people in Hong Kong worried that Shanghai Disney would further crimp its business. Once Shanghai Disney opens, Hong Kong Disneyland might lose more of its mainland visitors to its Shanghai counterpart. But the authorities said Hong Kong park had earned the popularity in different ways: ocean park, peak view, shopping malls, etc. Shanghai’s project will complement with Hong Kong’s to enhance the Disney industry in China.

Despite these difficulties mentioned above, Shanghai authorities said Shanghai would take all these challenges as a great opportunity to boost the related industry and to build itself for World Expo in 2010. Hopefully its