Analysts say Wanda's aim is to acquire the core competency of Hollywood. Their LA office will handle all investments in entertainment, including investment in local film production companies and global theatrical releases.

"It certainly seems like a very smart approach," said Lundberg. "If there is acquisition, you can certainly control what is happening under that acquisition."

"On the other hand, in general, audiences in North America just don't know how many talents are there in China," Lundberg said. "People don't know how many good stories can be filmed internationally and brought to North American audiences."

Another thing analysts predict Wanda can take advantage of is the opening up of international co-production channels for many US filmmakers, allowing them to enter China without worrying about the quota system.

Many studios today are seeking out official co-productions - in which a Chinese company works with an American studio in financing and creating a film - since it allows the film to bypass the Chinese foreign-film quota system and bring their distributors a 43 percent share of ticket sales, rather than the 25 percent allotted to foreign-made films.

"Everything will be under a co-production facility," said Jonathan Taplin, a professor at University of Southern California. "At least they don't have the problem of quota like many other local US films."

Wanda Chairman Wang Jianlin said earlier in his statement that the company's Qingdao complex in eastern China would host 30 foreign co-productions, in addition to 100 domestic productions.

"I think in today's global economy, Chinese companies' increasing interest in media and entertainment is a positive," said Hollywood film veteran Stephan Manpearl, owner of Manpearl Entertainment Marketing. "The entertainment industry is constantly in need of capital, therefore I think there will considerable opportunities for other Chinese companies to look at viable situations."

By Cindy Liu in Los Angeles (China Daily USA)

cindyliu@chinadailyusa.com