Hollywood must think bigger about China

Those sales lag North America's $10.8 billion last year but PricewaterhouseCoopers predicts the box office in the world's most populous nation will hit $5.5 billion by 2017. China has about 15,000 movie screens now and builds five to 10 each day.

Yang, who helped Disney adapt "High School Musical" for a Chinese audience, said US studios are taking mostly "defensive measures" to avoid alienating an increasingly important market but should start to think bigger.

"How about actually creating something that is appealing for the Chinese and also for the global market? I believe it's possible," said New York-born Yang.

Lack of exposure

Part of the shift in the Chinese attention to domestic films comes down to big improvements in story lines and production.

"I really am impressed with the quality of films that have been coming out in just the last couple of years," Yang said. "I understand why people are going."

She pointed to this year's romantic comedy "One Night Surprise" and last year's unexpected blockbuster "Lost in Thailand" as the new breed of Chinese films that take some risks and connect with the modern audience.

Still, a made-in-China global hit with Chinese characteristics - such as "Kung Fu Panda" - seems unlikely for the time being without Hollywood's help.

That 2008 Dreamworks creation sparked some soul searching in China, with many wondering why Chinese film makers have not done something like that.

"It still stands as one of the few examples of a global studio franchise that was replete with Chinese context and it was not compromised on any level," Yang said.

Chinese studios are torn between wanting to cash in on the cinema boom at home and trying to go global, she said. Growth in Chinese-American co-productions will help pave the way.

"The main problem is really not a lack of skills, it's lack of exposure," Yang said. "If you're trying to make a global film, you can't just do it through a Chinese lens."