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 Chinese box office sales rose 64% last year, when compared to 2009, reaching a total figure of $1.5 billion. The highest-grossing film of the year was US blockbuster Avatar, which took a total of $204m, far ahead of the biggest Chinese hit, Aftershock, at 100m.

In 2010, more than 300 new cinemas were opened in China, bringing the country's total number of cinema screens to 6,200. There news for China's film industry was not all positive, however, and a report from the Chinese Film Bureau stated that too few Chinese productions were "truly critically acclaimed" and capable of meeting "market cultural demands of the audience". Despite such criticism, Chinese films were met with increased popularity last year. From a total of 526 releases in 2010, 59 of them grossed more than 10 million yuan (£960,000).

IMAX Corp, the Canadian motion-picture film format company, is expaning in China with more giant-screen theaters and a greater range of movies, including Aftershock, the first non-English IMAX film.

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Digital movie equipment makers are predicting a surge in sales as Chinese and European cinemas upgrade to cash in on the popularity of 3-D movies such as “Avatar”.

Christie Digital Systems USA, the world's largest maker of digital projectors, could double their sales to $US400 million this year if it can meet demand, said Jack Kline, president of the California-based company.

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A Beijing court has dismissed a case filed against "Avatar" director James Cameron by a Chinese national who claimed the idea for the sci-fi blockbuster had come from a novel he published on the internet.

Zhou Shaomou was demanding eight percent of the total worldwide revenue earned by "Avatar", but the court threw out the case, citing insufficient evidence reported the Global Times on Monday.