China relaxes film import restrictions

China: Population of 1.26 billion potential filmgoers

China is to relax its film distribution regulations, giving more exposure to films from the United States and other countries next year.

China's embracing of the wider film market is seen as part of an attempt to enter the World Trade Organisation.

The China Film Group is currently the sole importer of films in China, but its distribution monopoly is to end.

The announcement was made at the Shanghai International Film Festival by Yang Buting, China Film's chairman.

Confusing

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US officials have received private assurances from China's State Administration for Radio, Film and Television (SARFT) that the film import sector will be more competitive next year, reports trade newspaper Variety.

Hollywood studios will be pleased at the latest developments.

China Film's import section is notoriously sluggish in its evaluation and censorship of films. Their choice of films is notoriously confusing and lacks commercial nous.

Moneyspinning blockbusters are often ditched in favour of showing smaller scale films such as Proof of Life, Stepmom and Meet the Parents. Each grossed less than $1m (£690,000) in China.

It is believed that up to six distribution licenses will be issued, with the Shanghai Film and Television Group one of the first.

A US film executive told Variety: "China Film has done a poor job.

"They've been very inefficient in distributing US and Chinese films. They had their chance and they did not deliver."

Yang's statements in Shanghai were seen by Chinese officials as primarily directed at foreign audiences, to encourage a greater influx of imports.

An anonymous Shanghai official said to Variety: "We know that things have to change, and they will be beneficial to [distributor]. But what will happen and when is unclear."

With a population of about 1.26 billion potential filmgoers, competition for new film distribution contracts should be extremely fierce.