Movie industry moving forward

But he also points to a "silver lining" for Chinese films attempting to break through abroad, as he believes the supply of new films globally will face a shortage due to Hollywood's sluggish recovery.

Yu suggests that Chinese companies should expand their distribution networks overseas, and he hopes domestic filmmakers can produce more influential movies, transforming the crisis into an opportunity and helping more Chinese stories reach viewers in Europe and the United States.

Recalling that he once saw Chinese hits－such as the animated blockbuster Ne Zha－being streamed on a piracy site in London, Yu calls for local decisionmakers to ally against piracy and attach more importance to copyright protection.

But for most industry insiders, the top obstacle for international cooperation remains a decadeslong struggle over what kind of stories can engage audiences from different cultural backgrounds.

Alongside Kung Fu Panda 3 as the two most commercially successful international coproductions in the last five years, The Meg－a sci-fi horror flick starring Jason Statham and Li Bingbing－grossed $530 million globally, with 1.05 billion yuan generated on the Chinese mainland.

Director Lu Chuan, who worked for Disneynature to direct the 2016 coproduction Born in China, says Hollywood's global success is built on its use of talent and resources all over the world.

"If China wants to realize the globalization of its domestically produced films, we need to cooperate more with international talent. Festivals can be a good way to increase such exchanges and create opportunities," he adds.