SM joint venture adds to Korean K-pop agencies' China comeback drive amid uncertainty over Hallyu ban Logo for STE Entertainment, a joint venture between SM Entertainment and Tencent Music Entertainment in China (SM Entertainment) SM Entertainment is stepping up its push into China through a new joint venture with Tencent Music Entertainment, as major South Korean entertainment companies seek to rebuild their presence in the Chinese market amid growing expectations of the easing of yearslong restrictions on Korean cultural content.The agency said Thursday that it established STE, a Beijing-based joint venture with TME, one of China’s largest music platform operators. The venture follows a memorandum of understanding signed by SM and TME in May.According to SM Entertainment, STE will oversee the development and management of artists targeting the market.The venture plans to launch a new Chinese idol group within two to three years. It will also manage activities in China for SM artists who have Chinese nationality, including NCT Dream’s Renjun and WayV’s Yangyang and Xiaojun.Zhou Mi, a Chinese member of Super Junior-M who has also served as a director at SM’s Chinese subsidiary, was appointed to be chief executive.SM is not alone in strengthening its operations in China.In February, JYP Entertainment’s Chinese subsidiary, JYP China, joined forces with TME and CJ ENM to establish Onecead, another joint venture targeting the Greater China market. Since then, Onecead has taken charge of managing Chinese boy band Modyssey — formed through a Mnet Plus K-pop competition — with plans to expand into music production, concerts and merchandise. Modyssey (Onecead) The recent moves come as hopes grow in Korea’s entertainment industry that China may gradually ease its unofficial restrictions on Korean cultural content, widely known as “han-han-ryeong,” or Hallyu ban.The restrictions emerged after Korea’s 2017 decision to deploy the American THAAD missile defense system. Though Beijing has never formally acknowledged the existence of such a ban, the restrictions have limited Korean artists’ ability to perform and promote in mainland China for years.Expectations of a thaw grew after South Korea's President Lee Jae Myung and Chinese President Xi Jinping attended the APEC summit in Gyeongju, North Gyeongsang Province, where the two sides discussed expanding cultural exchanges. Reports emerged at the time that Xi had reacted positively to a proposal for a large-scale K-pop concert in Beijing.Those hopes were renewed during Lee’s state visit to China in January, when the two leaders agreed to expand cultural and content exchanges in a “gradual and phased manner,” beginning with areas acceptable to both sides. Lee later said Xi had remarked that “ice 3 meters thick does not melt in a single day,” which Lee interpreted as a sign of Beijing’s willingness to gradually improve the situation.Though the changing diplomatic climate surrounding cultural issues appears to be creating room to prepare for deeper engagement, there has been no formal announcement that the restrictions have been fully lifted. South Korean Culture Minister Chae Hwi-young has also cautioned against excessive optimism in February, saying there has been little tangible progress so far despite expectations that the restrictions could gradually ease.