China eases Hollywood quota

Washington and Beijing have signed an agreement that would lead to a 70% increase in the number of Hollywood films that can be released in China.

Chinese vice president Xi Jinping recently signed the agreement in Washington under which China would allow release of an additional 14 premium format films such as 3-D and IMAX and similar enhanced format movies . This would be in addition to the screening of 20 "revenue sharing" films. The agreement has increased the share of US companies in the incomes from showing films in China from 13.5% to 17.5%.

"This agreement...will make it easier than ever before for US studios and independent filmmakers to reach the fast-growing Chinese audience , supporting thousands of American jobs...," US vice-president Joe Biden said in a statement.

Motion Picture Association of America President Chris Dodd called the pact "tremendous news for the millions of American workers and businesses whose jobs depend on the entertainment industry'' . The move is seen as part of Xi's attempts to increase his popularity as he is slated to become the country's next president after elections later this year.

But the decision may not go down well with Chinese filmmakers, who have relied heavily on restrictions for their business. Experts often cite lack of competition as the reason for poor quality Chinese films which mostly rely on historical themes.