Movie industry moving forward

He predicts Chinese filmmakers will create more realistic stories as a result of the nation's battle against COVID-19.

"With the collective memory of the nation's effort to rescue life and reduce death, Chinese audiences will probably want more positive stories," Lu says.

Rao Shuguang, president of the China Film Critics Association, says Chinese cinema has diversified genres, visual effects and storytelling that have raised it to a new bar, thanks to the growing sophistication of viewers.

A stellar cast and heavy special effects no longer secure films' commercial success. Instead, a heartfelt story that resonates with the audience is more likely to succeed in the local market, he adds.

Examples include Dying to Survive, a 2018 runaway hit examining patients' struggles with high medicine costs, and the 2019 coming-of-age blockbuster Better Days, a thought-provoking touch on campus bullying.

More successful examples include Wolf Warrior II, China's all-time highest-grossing film, which sparked patriotic fever, and Ne Zha, the second highest-grosser that retells a household myth from a modern parenting perspective.

While superheroes and visual effects-studded blockbusters from Hollywood continue to be the most appealing imported content, exemplified by the overwhelming popularity of Avengers 3 and 4, non-Western imports have also seen growth in local markets, with the Indian hit Dangal and Lebanese film Capernaum as two of the most successful examples.