Checking the July film schedules in Shanghai reveals there are very few imported movies currently being screened in the city's cinemas. Brave and Madagascar 3: Europe's Most Wanted are still playing, but they were released in early June. In contrast, there are more than 20 domestic films either currently being shown or about to hit our cinema screens.

Although there is no official "protectionist" policy during the summer, most film industry insiders have noted that during July, the number of overseas films is usually restricted in order to give homegrown offerings a chance at capturing part of China's lucrative box office.

Go figure

Figures released by the State Administration for Radio, Film and Television (SARFT), show that during April and May, Titanic (3-D) took in a total of 1 billion yuan ($156.91 million) at the Chinese box office. Close on its heels was Mission Impossible - Ghost Protocol which made more than 650 million yuan, and The Avengers which raked in 570 million yuan. Meanwhile, the total income of 17 domestic films released during the same period amounted to only 400 million yuan.

The figures also show that the roughly 100 domestic films released in the first half of 2012 accounted for only 30 percent of the total box office during that period. Of those films it was further reported that only 10 turned an eventual profit, eight broke even, and more than 80 lost money.

And this situation may get even worse because of the WTO agreement of February 2012, whereby 14 more American films will be required to be screened in China every year, on top of the current annual quota of 20.

Among the big-name domestic films hoping to entice audiences this summer is Painted Skin: The Resurrection (or Painted Skin II) (3-D) released on June 28. The signs are looking good: it became the first domestic film to take in 20 million yuan at the box office in its first three days.

An action fantasy film, Painted Skin II is the sequel to the 2008 movie of the same name (which earned 20 million yuan at the box office). With a budget of 12 million yuan, the sequel boasts the original cast of leads, including Chen Kun, Zhao Wei and Zhou Xun, three of China's leading stars. The film also opened this year's Shanghai International Film Festival.

"The outstanding performance of Painted Skin: The Resurrection at the box office is a great encouragement for domestic films, which have been living in the shadow of overseas films for a long time," Raymond Zhou, the film critic from Movie View Biweekly told the Global Times. "To some extent, Painted Skin II can be regarded as a successful blockbuster and a good example of how domestic films can compete with the big Hollywood blockbusters."

Quality counts?

However, box office success doesn't always mean critical success. Painted Skin II received an average 6 points out of 10 on film review websites, with many viewers criticizing its illogical plot and implausible characters.

"Although the film has been heavily criticized, its stellar cast, big budget, and magnificent cinematography constitute a big attraction for cinema goers," added Zhou. "In my review I also gave the film 60 out of 100, but it is still one of the domestic films I would recommend checking out at the cinema." He also pointed out that a lack of interesting foreign films at the moment may also account for the success of Painted Skin II.

Some movie lovers have complained that only the 3-D version of Painted Skin II is being screened on the Chinese mainland, unlike in Hong Kong where the 2-D and 3-D formats are both available. "Domestic cinemas are more likely to screen 3-D versions, not just for higher profits, but also as a way to protect against piracy," said Zhou. "The pressure piracy puts on domestic films is even worse than the pressure imported films put on domestic films."

A glimpse at other domestic films, reveals that another current box office winner is Caught in the Web released on July 6. It is directed by Chen Kaige who rose to international fame with Farewell My Concubine (1993).

A number of Chinese thrillers and computer game-based animations are also fighting for market share, although, by comment consent, most are struggling. "Audiences would also like to watch horror films, but the strict censorship around their plots - for example, no 'ghosts' can be shown in films - has stopped filmmakers from being creative in this genre," said Zhou. "There is also the problem that the plots of Chinese animations are so simple and naive that they only appeal to children. Works by Pixar and Dreamworks, for example, also contain adult humor and references which means they attract a more widespread demographic.

"I find the protectionism this summer wholly ridiculous. It's just a fig leaf for domestic films, but it doesn't help to raise their quality in any way. A fair film market requires open and fair competition," said Sun Qingwei, a 27-year-old Shanghai film lover.

A cursory glance at upcoming releases in the second half of the year reveals a number of ambitious, high-profile imported blockbusters in the making including Ice Age: Continental Drift, The Amazing Spider-Man, The Dark Knight Rises, and The Hobbit: An Unexpected Journey. The uphill struggle for domestic films isn't going to get easier anytime soon.