Tax breaks / incentives
Co-production films can be commercially released in China upon approval by the State Film Censorship Committee, whereas a foreign film has to go through the import channel if it wants to get released in the Chinese market.
A co-produced film can also enter the competition for the Chinese Movie Award. This the only government award in China which makes it highly prestigious as well as having a cash prize.
Chinese tax law rules that foreign producers need to pay 20% income tax on any revenue yielded in the Chinese market. However, Chinese tax authorities will cover 10% of this for films shot partly in China, which therefore equates to a 10% discount.
Tax incentives introduced in 2014 include a 15% tax rate for film companies based in Shanghai and also an incentive-laden programme to support shooting and post-production.