China’s quota of twenty foreign films a year has been nearly doubled after an agreement to allow fourteen “premium format” films (such as IMAX or 3D) and their 2D equivalents, while the Chinese box office share for U.S. studios also will increase to 25 percent from around 15 percent. The deal was struck as Xi Jingping, seen as the likely next president of China, ended his US tour in Los Angeles.

Chinese box office revenue grew to USD 2.1 billion last year, much of that from the rapidly growing 3D sector. The agreement arose from a case challenging China’s restrictions on importation and distribution of copyright-protected materials won by the US at the World Trade Organization in 2009. China has subsequently improved market access for books, newspapers, journals, DVDs and music, but the two sides continued to haggle over films – while TV is another sensitive area altogether.

While the case will increase the number of Hollywood films showing in China, it remains to be seen how much this will benefit the studios. Cinema ticket collection and disbursement aren’t exactly what they are in the US.