Youku.com Inc.'s and Sohu.com Inc.'s online video platforms have already cut deals with The Walt Disney Co. and CBS Corp. to stream U.S. dramas such as Desperate Housewives, Grey's Anatomy and Gossip Girl, with more such deals expected.

For years, it has suffered from poor films, poor movie theaters and a thereby natural lack of consumer interest. But film companies now expect good things ahead, thanks in part to China’s rapidly growing middle class.

Twenty years after the Empire of the Sun, the Chinese film world has changed beyond recognition. Today Chinese producers have started to play more important roles, co-producing movies with foreign teams.

Legendary East, the Hong Kong-based venture launched by Legendary Entertainment this summer, will get $220 million in funding from a new investor, the company announced months ago. The investor,

Kung Fu Panda 2 smashed records after its release in China in June, earning 125 million yuan at box offices on its opening weekend, a record in China. Given this kind of success, and the growth of the Chinese cinema industry as a whole, with takings forecast to grow 30 per cent this year to 13 billion yuan, it is no surprise that foreign studios are taking a growing interest.