China's annual returns at its movie theatres continue to reach dizzying highs.
Most of that comes from Hollywood blockbusters, but local productions have also been making huge gains.
So, filmmakers are increasingly looking overseas, including to Australia, to develop new ways of keeping up with demand.
Aileen Phillips reports.
Big screens in China have become very big business.
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Total box office returns are expected to climb almost 50 per cent this year to nearly $9 billion.
And if the trends continue, China is due to overtake the United States as the world's largest film market.
William Feng is with the Motion Picture Association of China.
"China's audiences are very sophisticated. They don't just like one kind of genre of movies, they like all kinds of good movies. So, in that regard, filmmakers and Chinese audiences have a great appetite to work with foreign countries."
By looking overseas for ways to keep up with demand, this year's International Chinese Film Festival in Sydney is being touted as the most commercially focused ever.
It gives Chinese producers a chance to pitch future projects that need high quality production facilities and crews.
Fox Studios Australia managing director Wayne Borg says that is where Australia comes into the picture.
"The ability to access our post-production facilities here and the post-production expertise we have, for us to generate the production quality that Chinese audiences are now looking for. We've seen that being accessed by filmmakers from all around the world, because they recognise the quality of what we have to offer here."
A co-production agreement has been in place since 2008, making certain projects eligible for rebates of up to 40 per cent.
Ausfilm chief executive Debra Richards explains.
"You can get 30 per cent back on visual effects, music and sound post-production. But also 16.5 per cent if you simply want to locate here using some of the iconic destinations as well. It's all about sustaining a continuity of work, and, if these co-productions can add to that, then it's great for the Australian industry."
Pre-production has begun on two major Chinese features in Australia.
And by taking advantage of Australian sites and facilities, there could be a further effect in other areas, like tourism.
But one name behind two previous co-productions, filmmaker Pauline Chan, says there are still very few producers willing to come to Australia.
"In Australia, people take a longer time to work a scene, and, also, there's a penalty to overtime, whereas, in China, one's working day is 24 hours, so they can do a film much faster with the same script."
