Since its very first motion picture,'Conquering the Jun Mountain'(Ding Jun Shan) made in 1905,Chinese film industry enjoys a history of over 100 years. Over the past century, the Chinese film has evolved into a complete industry from production, theatrical distribution and exhibition to technological development, teaching and research, etc. Since Chinese government initiated industrialization drive in the field of film in 2003, a series of important policies and measure to encourage film development and prosperity have been made. The last 6 years have witnessed continuous and rapid growth in both film production and film market. The film production has risen from 140 in 2003 to 406 in 2008,screens in urban areas, from 2197 to 4097, and box office receipts in urban areas, from RMB 920m to 4.3 bn, up by 190%,86% and 367% respectively.

Due to its high importance to rural residents' need for cinema, Chinese government has launched "Rural Film Projection Program" that aims for at least one screening in one village each month. With the input of hundreds of millions of RMB yuan every year to allocate digital cinema equipments in rural areas, a Public Service System has now taken shape, offering diverse films to rural audience. In 2008, over 7 million screenings were made for the rural residents.

Along with the opening up and competitive landscape, Chinese film industry has a higher profile in the international arena. Mega-Hits like HERO, HOUSE OF FLYING DAGGERS, ASSEMBLY, RED CLIFF, and among others, have achieved extraordinary box office performance in the international film market. China film festivals are held overseas every year, and Chinese films participate in many international film festivals. This shows China is committed to promoting international cooperation and exchanges on the basis of mutual benefit.

In the background of reform and opening-up and modernization drive, with extensive implementation of the industrialization policy, the Chinese cinema is expecting an even more promising prospect.