Chinese government approves Disney park in Shanghai

The Beijing government has approved plans to build a Disney park in Shanghai, representing a major milestone in the more than decade-long effort by the Walt Disney Co. to build a theme park in mainland China.

Disney submitted plans in January that had been developed jointly with the Shanghai municipal government to build a $3.59-billion park to open as early as 2014. It would be the entertainment giant's fourth theme park location outside the U.S., after Paris, Tokyo and Hong Kong.

This framework agreement received formal approval from the central government, Disney said today. The central government's action clears the way for Disney to work out detailed plans to build and operate the park, a final plan that would address infrastructure issues such as subway and road access to the park, as well as finances.

"China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for the Walt Disney Company in mainland China,” said Disney President and Chief Executive Robert A. Iger.

Disney has been in on-again, off-again discussions with the government in China since 1995, when the Shanghai government first contacted the company to propose building a theme park in the city. Talks have ebbed and flowed since then, with discussions resuming in earnest about two years ago, according to people familiar with the matter who asked not to be identified because of the sensitivity of negotiations.

The new park would give Disney access to 300 million people who live within a day's travel of Shanghai, a sprawling, affluent and modern city of about 16 million people. The new Magic Kingdom-styled theme park would have amenities similar to other Disney destinations around the world, while nodding to its Shanghai region.

-- Dawn C. Chmielewski