China & Hollywood: a budding romance?

China is the second-largest movie market in the world, and on pace to become the biggest by the end of the decade. With box office revenues rising 30% last year to 2.7 billion dollars, China is becoming extremely alluring for Hollywood. And that interest isn't just one sided. Chinese investors also have their eyes on Hollywood.

In the past, the Chinese film industry always looked the Hollywood as the golden standard in terms of know-how and experience. But now things are rapidly changing. Chinese investors are fast becoming a player in its own right, making an increasing amount of investment in Hollywood.

China's currency, the yuan, is now making its way through the Hollywood system.

In 2012, Chinese conglomerate Dalian Wanda Group purchased U.S. cinema chain AMC Entertainment for 2.6 billion US dollars. That not only gave Wanda Group a foothold in the U.S. market -- it gave the company more clout in negotiations with major Hollywood studios, many of which are now eager to expand into China.

It looks like the beginning of a new wave of deal making between the two countries.

Just last September, Beijing Galloping Horse Film and TV Production bought Digital Domain Media Group, a leading American visual effects company.

Raymond Zhou, film critic, said, "Right now we are seeing the very beginning of the first phase of Chinese capital flowing into Hollywood. As the Chinese saying goes that those people who first taste the crab will probably meet some unexpected challenges. They have a high rate of failure. But without them, the successors."

The interest of Chinese filmmakers in Hollywood is by no means one sided. As more and more Chinese money flows in and China's film market explodes, Hollywood studios have also been trying to reach out to Chinese audiences. They've even gone so far as to add Chinese elements into films, particularly in "co-productions".

"Iron Man 3" is one of them, a cooperation between Marvel Studios, Paramount Pictures and China's DMG Entertainment. Some of the film's scenes were shot in Beijing last December. If that's not enough, movie veteran Wang Xueqi makes an appearance, and there's also a cameo by Fan Bingbing. Although the movie has been a big hit at the box office, not everyone has been pleased by the kowtowing.

Raymon Zhou said, "Instead of being encouraged by that, most Chinese audience feel insulted by that. Because people don't know that those movies are partly invested by Chinese businesses and they thought it's just Hollywood'd attempt to win over"

Such Chinese elements have been called "decorations", aimed only at boosting Hollywood appeal in a lucrative market. The effect may a bit too obvious for some, but these are early days after all, for this cross-cultural relationship.

Raymond Zhou said, "Eventually, I think Chinese investors in Hollywood movies will find a better way of integrating with the Hollywood system and trying to bring Chinese culture into those projects."

Hollywood is obviously keen to co-produce films with Chinese film companies. But how to successfully find common ground between Chinese and global audiences is a riddle that remains to solved.