Dreamworks to create movie studio in Shanghai

"KUNG Fu Panda" creator Dreamworks Animation will soon set up a production studio in Shanghai through a deal that could be announced during Chinese Vice President Xi Jinping's visit to Los Angeles.

The joint venture will be between Dreamworks and a Chinese company created specifically for the project, sources with China Media Capital told the Xinhua news agency yesterday, adding that the Chinese company has not yet been given a name.

Joint ventures might get Hollywood closer to China's huge audiences. By producing in China, Dreamworks can bypass the restrictions on foreign content. Only 20 foreign films a year can be screened nationally at cinemas in China.