BEIJING: While the Obama administration is expecting success in its announced plans to block products from China's telecom and solar industries, Beijing is gearing up to make inroads in a more influential arena: Hollywood . And leading the change is vice president Xi Jinping , slated to be the next president. The formula is similar to China's ventures in many other industries: offer the lucrative domestic market to foreign investors even it means temporary losses to the local industry. The other aspect of the game plan is to encourage domestic players to invest overseas with support from state-run backs and investment agencies. "The past dominance of domestic films in the Chinese market has been shaken," vice minister of the state administration of radio, film and television Tian Jin said at a press conference on Sunday. China's movie industry began to change dramatically since last February when Vice President Xi visited the United States and signed a deal allowing the import of an additional 14 films into China besides the official quota of 20 foreign film imports a year. What happened is a surprising change and local film makers begun complaining loudly. Audiences started queuing up for Hollywood hits and neglecting local productions. The local media was persistent with questions on why Chinese films are sub-standard compared to the Hollywood ones. Tian reported the domestic industry's share in the total revenue has fallen drastically to 41% with foreign films taking away a bigger part of the total box office collections. China's film market is seen as one of the largest potential markets for Hollywood once the government agrees to liberalize it. China's box office revenue has come to $2.1 billion in the first 10 months of 2012. The industry is expected to grow at a high rate once it opens up further. Observers said China will open up only the financial and technical aspects of the movie industry. But the propaganda department of the communist party is keen to use local markets to influence Hollywood's perception of China than any desire to soften censorship within the country. DreamWorks Animation, producer of Hollywood blockbusters such as "Kung Fu Panda", announced the establishment of a joint venture with Chinese partners in Shanghai last February. The new company, Oriental DreamWorks, will utilize elements of Chinese history, culture and literature in its various productions, Jeffrey Katzenberg , CEO of DreamWorks Animation, said. In April, the officials met with filmmakers like James Cameron during the 2nd Beijing International Film Festival and invited them to invest in China. "With a 5,000-year history, China has abundant source of stories, which I believe can be well received by the global audience after proper development," the organization head, Tong Gong said.