Poster of Wolf Totem. [Photo/Agencies]

Nominees for Best Foreign Language Film are selected based on submissions from individual countries, which can only put forward one entry each year.

Wolf Totem was replace with Go Away, Mr. Tumor, a domestic film about a cartoonist's optimistic and tear-jerking battle with lymphoid cancer.

The news shocked China's social media. "Are you sure this isn't a joke?" asked one user on Sina Weibo, China's equivalent to Twitter.

La Peikang, chairman of China Film Group and biggest backer of Wolf Totem, said he was "deeply shocked" by the decision.

To Annaud, the disqualification will be an "enormous problem" for future co-productions in a state that has opened its doors to foreign influences.

He accused Hollywood of a "nearly protectionist" double standard where "American cinema can feed off foreign talent without reservation. But foreign cinema must remain tribal."

"Perhaps there's an American worry with respect to the internationalization of Chinese cinema," he said. "Why shouldn't China be afforded the same possibilities?"

China's entry last year was The Nightingale, another Sino-French co-production with a French director. The only Chinese film to be shortlisted for an Oscar was Zhang Yimou's Hero in 2003.