Hollywood blockblusters are pulling in mega-bucks at box offices in China, a clear reflection of the inroads imported movies are making into the once tightly-controlled film industry.

"Matrix Revolutions" pulled in US$1.8 million during its opening week, while "Pirates of the Caribbean" sold US$1.2 million worth of tickets in just seven days.

Located in the bustling Wangfujing shopping area, Sun Dong An cinema city is one of the trendiest cinemas in the Chinese capital.

Set up three years ago, the cinema houses four theatres and has a 500-seat capacity.

To usher in the new year, Chinese movie-goers can catch Hollywood blockbusters such as "Pirates of the Caribbean" and Hong Kong's movie "Infernal Affairs III".

But local productions are also determined not to be sidelined.

In keeping up with its annual tradition, renowned Chinese filmmaker Feng Xiaogang has once again come up with a feature to usher in the new year.

This time, it is known as "Shou Ji", or Cell Phone. And in a bid to attract publicity, the storyline has been kept strictly under wraps prior to official screening.

Every year, China imports 20 foreign films and eight out of 10 are Hollywood productions.

Figures show an annual box office potential of US$1 billion to US$1.5 billion, and the figure is expected to grow five percent every year.

This excludes the effects of a vibrant and rampant, piracy market.

Cao Bin, a movie-goer, said: "I watch five to six movies a year in cinemas but I buy countless pirated VCDs. They are cheap and besides, I don't always have the time to go to a cinema."

One way to tackle piracy, industry watchers say, is for China to release popular movies in tandem with other global markets such as the recent debut of "The Matrix Revolutions".

Yuan Xin, Manager of Sun Dong An Cinema City, said: "We reaped better profits than usual during the simultaneous screenings of "The Matrix Revolutions". While piracy is a problem, we try and do our part by offering membership for regular cinema-goers and organising other promotional activities."

With more imported films promised as part of China's entry into the World Trade Organisation, the local film industry has also come under extreme pressure to produce even better movies.

Wu Jing, a movie-goer, said: "I'm not drawn to local movies as they are not as good as those made in Hollywood or Hong Kong, in terms of their storyline, visual impact and the way they are filmed."

And making it worse for local filmmakers, they are unlikely to get any help from authorities, who have made it clear that it will no longer prop up what it calls losers in the industry.

Such a move has been described as a sort of mixed blessings to the local film industry, as it has forced filmmakers to be more innovative and creative.

It has also taught local filmmakers to exploit marketing opportunities, such as cashing in on movie by-products such as toys, CDs, and other gadgets.

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