The expected influx of 20 more major US films a year could be a big suspense-thriller in China where Hollywood is expected to light a fire under unimaginative, noncompetitive filmmakers. Xu Wei reports.

A big increase in the quota of US films allowed into China has aroused widespread concern about competition voiced by film directors, cinema operators and film critics.

Some regard the "invasion" by Hollywood films as a big threat to a less creative domestic film industry. Others say that it can be a big, long-term boost for Chinese filmmakers, helping them learn and forcing them to become more competitive.

According to the new agreement, China now permits a total of 34 big US films a year to be released in China - 20 more than previous - and the 14 additional movies each year must be 3D or IMAX version.

Also, foreign filmmakers now are able to keep a bigger share of box-office takings, which is increased from 13 percent to 25 percent.

Wu Hehu, deputy director of Shanghai United Cinema Lines, the city's largest cinema chain, is cautious.

"About three Hollywood blockbusters will be shown monthly," Wu says. "It is definitely bad news for domestic cinema, as it must work very hard in production and distribution to stand out from the fierce competition. Chinese movies may also lose a large number of viewers who seek superb visual effects in Western films."

They have reason to worry.

Although China's box office last year roared to more than 13 billion yuan (US$2.1 billion), the 20 permitted Hollywood films accounted for about 40 percent of the total takings.

After the spy thriller "Mission: Impossible - Ghost Protocol" made more than 500 million yuan on the Chinese mainland, a few more Hollywood mega-productions will be screened this year, including "Titanic 3D" (April 10 on the Chinese mainland), "Madagascar 3: Europe's Most Wanted," "The Amazing Spider-Man," "The Bourne Legacy" and "The Dark Knight Rises."

Industry observers are concerned that the increased number of Hollywood films will push domestic film producers to release films at the same time, while few US films are screened.

"To avoid direct competition from blockbusters, a lot more Chinese movies may be released simultaneously at a low period for Hollywood films," says Professor Shi Chuan, a film and media expert at Shanghai University.

"Therefore, they will fight each other. It will specially be a nightmare for moderate- and small-budgeted films," he notes. They will find it more difficult to get good and long-term slots or even fail to get any access, because many cinemas reserve time slots and quotas for very profitable films, Shi says.

Compared with Hollywood, Chinese cinema faces a major problem in lack of good stories and good storytelling.

The increased number of blockbusters will especially be a "nightmare" for domestic art house-type films since there are no cinemas dedicated to interesting, small-budget, "artsy" films. They get virtually no financial aid.

"Although many Chinese art film directors are used to expressing their own feelings and opinions, they now must consider the market and their audience," Professor Shi says. "Their concept of creativity must change. Their works must speak to audiences."

However, not all the filmmakers and critics are pessimistic and some consider increased competition a good opportunity for Chinese movies to find their own footing and direction during this process of "dances with wolves." Sometimes learning the hard way is best.

Good opportunity

The 1930s and early 1940s was a peak period for US films in China, when at least 350 Hollywood productions were screened each year, including "Gone With the Wind" (1939) and "Bathing Beauty" (1944). Big studios such as MGM, Columbia, Paramount and Universal launched their own distribution agencies in China to promote movies and get first-hand feedback.

"But to the surprise of many, that was also a golden period for Chinese cinema," says local film and TV critic Li Tian. "The film industry and market were thriving. So many outstanding Chinese film directors and high-quality productions emerged. Directors such as Cai Chusheng, Zheng Junli and Tang Xiaodan were not afraid of competition. They learned cinematography from Hollywood but stuck with their own creation style. Their films were realistic and inspiring, attracting a huge audience."

China can learn from India, which is totally open to Hollywood movies, but its light-hearted, song-and-dance Bollywood films are also enormously popular.

Li hopes more excellent, moderate-budget US films tackling real world, human issues will be shown in China, not just sci-fi, action and adventure.

He cites films by the independent Weinstein Bros Co, such as "The English Patient" (1996), "The Reader" (2008) and "Chicago"(2002), all of which were both commercially successful and critically acclaimed.

"Mainly targeting thoughtful movie-goers, the Weinstein brothers usually choose a story or a philosophical topic that many formulaic and superficial blockbusters can't address," Li says.

The survival and success of these kind of films in Hollywood shows that Chinese filmmakers can definitely find their own way in the competition, he says, adding that domestic films needn't be visually extravagant but they should fill a void and be unique and thought-provoking.

Director Feng Xiaogang, known for his high-grossing films such as "The Banquet" (2006), "Aftershock" (2010) and "If You Are the One" (2008, 2010), hopes the Hollywood influx can spur the government to adopt a film rating system, instead of applying a single standard. This would give more creative freedom to filmmakers and it would be good news for audiences.

Chinese-American film director and producer Sherwood Hu says that as early as the 1920s, Hollywood film studios conducted market surveys in China, adding that most Hollywood films have universal appeal and vision. But Chinese film makers don't understand the global market and global tastes, he tells Shanghai Daily.

Western audiences are getting bored with Chinese king fu films, and Chinese directors should offer more powerful and thoughtful films about the reality and future of mankind.

"Attack is the best defense," Hu says. "It is also a good chance for domestic film directors to bring more Chinese pictures to the West. They can learn a lot more from Hollywood beyond cinematography and distribution to embrace an international vision for future creativity."

Investors gear up

Meanwhile, local investment institutions and film/TV enterprises are quickly gearing up to meet new opportunities and challenges in the American film influx.

A family entertainment company, Oriental DreamWorks, will be formed as a joint venture collaboration of DreamWorks Animation SKG Inc, China Media Capital, Shanghai Media Group and Shanghai Alliance Investment - the latter an investment arm of the Shanghai Municipal Government.

The new company will be capitalized with cash and intellectual property valued at US$330 million, with Chinese companies holding a majority stake of around 55 percent and DreamWorks holding approximately 45 percent.

In contrast with the earlier approach of simply exporting films to China, the new venture "will actually go to China, with stories that are made for China, by the Chinese, in China, at a quality that actually can be exported to the rest of the world," according to DreamWorks Animation's Chief Executive Officer Jeffrey Katzenberg, who spoke to Chinese media.

Li Ruigang, chairman of China Media Capital, says Chinese partners share the same vision with DreamWorks Animation to build a world-class family entertainment company creating high-quality, interactive entertainment for Chinese and international markets.

The new joint venture will combine the expertise of DreamWorks Animation in creative processes, innovative technology and global network capabilities with the R&D, media and entertainment management experience of local companies and organizations.

Some Chinese animators will train with the company.

The company expects to screen its first animated film by 2016 and two films a year by 2018, as well as live-action features. The plots and images will have strong Chinese elements.

Oriental DreamWorks will also seek business opportunities in live entertainment, theme parks based on Dreamworks franchises, mobile, online, interactive games and consumer products. An interactive entertainment center will be built in Shanghai.