A shot from Mission: Impossible - Ghost Protocol

A shot from The Flowers of War

A shot from Bodyguards and Assassins

A shot from Avatar

A shot from A Simple Noodle Story

 More US films to be released in China's cinemas

The coming year marks a new period for China's box office bustle. Fourteen more 3D or IMAX movies from the US will be permitted to air in China, on top of the 20 US films allowed per year, and Hollywood's share in box office revenue in China will rise from 13.5 percent to 17.5 percent.

The news excited film industry insiders in the US as they have been hoping for a more open Chinese market. But on the other side of the Pacific Ocean, reactions are varied.

According to a recent poll launched by Sina Weibo, a major microblogging site in China, as of February 21, 46 percent of participants were happy about the news, saying that they looked forward to seeing more US blockbusters, while five percent were worried about the effect this will have on domestic films. Many movie insiders believe the presence of more Hollywood blockbusters will motivate the domestic movie industry to become more competitive. 

Fringe benefits

While some worry about domestic movies being able to survive among a flux of Hollywood films, a majority of Chinese, including some well-known directors, believe that a stronger, more competitive domestic film industry will emerge as a result.

Gao Qunshu, director of The Tokyo Trial, said, "As the Chinese movie market opens to the US, films that are of a lower quality will be weeded out, and productions with higher standards will gain the recognition they deserve. It is a blessing for Chinese movies as a whole."

Gao's words are echoed by movie critic Tan Fei, who believes this opening of the market will bring a short-term pain but a long-term gain.

"The movie industry [in China] needs such a shuffle," he told the Global Times. 

Feng Xiaogang, a well-known director, sees this as a great opportunity for the Chinese film industry.

"The more Hollywood movies come in, the more space Chinese movie makers will have," he wrote on Sina Weibo. "A stronger Hollywood presence will cause the government to fight piracy even more, which will also benefit the domestic industry."

It's all about timing

While many industry observers and film lovers are discussing the pros and cons of the new rules, a report from Tencent, an Internet service portal, zeroed in on the issue of competitive release dates.

Zeng Jian, a reporter from Tencent, wrote, "At the moment, domestic movies are still protected from being drowned out by Hollywood films. But if US companies ever become allowed to release a film whenever they want, then domestic movies will lose their biggest umbrella."

Tencent went on to explain that during peak seasons, like the Spring Festival, China Film Group Corporation and Huaxia Film Distribution Company, the only two companies, both State-run, that can dictate release dates, will purposely make space for domestic movies.

For example, in order to make room for A Simple Noodle Story and Bodyguards and Assassins in 2009, Avatar's release date was pushed back to January 4, leaving the first three days after the New Year holiday to domestic movies.

However, it's easy to guess what would have happened if The Flowers of War and Flying Swords of Dragon Gate were released alongside Hollywood's Mission: Impossible - Ghost Protocol, Sherlock Holmes: A Game of Shadows, and The Girl with the Dragon Tattoo.

"As long as the box office schedule is in China's hands, even if 100 Hollywood movies come in, the domestic film industry will still thrive. But if China allows overseas companies to dictate release dates, five Hollywood movies could kill the future of domestic movies," the report concluded.

Gains for Tinseltown

Profits and job opportunities are the two major benefits for the US through the deal.

Many movie insiders regard the deal as a "significant opportunity" to begin "a new era in the history of our relationship," according to Disney CEO Robert A. Iger and Warner Bros. Chairman and CEO Barry Meyer.

US Vice President Joe Biden called the deal a "breakthrough" and believes this agreement will support "thousands of American jobs in and around the film industry."

Peking University School of Arts professor Qiu Zhanghong, who researches movie technology, says Hollywood stands to benefit from the move. In order to protect their own domestic film industry, almost every country sets a quota for Hollywood movies. This causes US filmmakers to find creative ways to increase profits abroad, and 3D films, with their spectacular effects, are one effective way to do this.

Qiu said that according to estimates, the budget of a 3D movie is more than three times that of a standard film, and ticket prices for a 3D movie can be 1.5 times a normal one. When the US market looks shaky, Hollywood turns to its overseas markets, and the large Chinese audience is one of the most reliable targets.

Though many believe that the US film industry is powerful enough to sack the domestic industry, some critics point out that it's not invincible.

"It's not worth worrying over a dozen Hollywood movies," said Zhao Ningyu, a movie critic and professor at Communication University of China. "It's unlikely that Hollywood will produce 20 outstanding blockbusters in one year. As for exceptional mid-budget films, most Chinese aren't very interested."