Need stories to be well told

Cinema also offers an opportunity to promote Chinese culture but this is no easy task.

In 2012, "Lost in Thailand," a low-budget comedy, earned 1.25 billion yuan in China, yet it only generated a paltry $57,000 during its US theatrical release.

Zhang said that the subject, storytelling and marketing all affect a movie's performance. "For example, China's martial arts films are better received by foreign audiences."

In order to cater to Chinese consumers, Hollywood producers usually use locations in China, or Chinese crew. Obviously, "Chinese elements" alone are not enough.

Chinese film producers hope to learn from Hollywood and apply some of its film production, technology and marketing methods through co-production deals.

"Our final purpose is to create movies like 'Kung Fu Panda' by ourselves. The key will be finding a good Chinese story and telling it appropriately," Chen Derong said.