Hollywood blockbusters are major players at the Chinese box office, but lately the local industry has been giving the Americans a run for their money, with mid-budget local films enjoying huge success. Liu Wei reports.

China has been the most rewarding box office territory for many American blockbusters in recent years, but the rapidly growing local industry reminds Hollywood that it faces tough challenges ahead in its bid to woo Chinese moviegoers.

When local romance Love is not Blind, made with only 10 million yuan ($1.6 million), dwarfed Steven Spielberg's The Adventures of Tintin by grossing 330 million yuan in November 2011, some considered it a special case. In December 2012, however, another mid-budget comedy, Lost in Thailand, grossed 1.26 billion yuan, not far off the 1.3 billion yuan ticket sales of James Cameron's Avatar, in China. Jackie Chan's action comedy Chinese Zodiac, released shortly after, took 880 million yuan.