When DreamWorks Animation SKG Inc. debuted its blockbuster movie “Kung Fu Panda” in 2008, China worried that a Hollywood studio hijacked the country’s cultural treasure.

The cartoon panda, dreamed up by a U.S. studio, ranked within China’s top 10 grossing films at the box office, while China’s own animations trailed far behind and went no further than the country’s borders.

So when DreamWorks’ chief Jeffrey Katzenberg approached Chinese partners about setting up a joint venture to create new versions of the “Kung Fu Panda” series and other blockbuster animations like it, China seized the chance to redeem its national gem and the opportunity to produce Chinese cartoons that could reach the world.

“Kung Fu Panda 3” is set to open in China and the U.S. this weekend and will be the first major project from the joint venture, Oriental DreamWorks, which will soon announce a slate of other Chinese-themed films for export to global audiences.

It’s also a litmus test for future Hollywood-China tie-ups, which have had a rocky road in recent years. Other co-productions, like 2010’s “Karate Kid” and 2014’s “Man of Taichi,” pulled in U.S. audiences but flopped in China.

As a co-production, “Kung Fu Panda 3” is guaranteed a bigger cut of China's box office than foreign films get. Most foreign films don't take home all of their China profits, as Chinese regulators, who tightly restrict the market, cap the share at 25%.

But Oriental DreamWorks and DreamWorks are trying a few other tricks to boost their take-home. They have stocked Chinese grocery store shelves with Kellogg’s “Kung Fu Panda” cereal boxes and teamed up with social media app WeChat, making “Panda” graphics available for download.

To draw more viewers in China, the studios are also releasing two different versions of “Kung Fu Panda” in the Chinese market. One will be the English-language version the rest of the world sees, featuring voice overs from Hollywood stars like Jack Black and Angelina Jolie. The other will be in Mandarin.

But this is no simple dubbed voice over, says Jeffrey Katzenberg, DreamWorks’ chief executive. Oriental DreamWorks hired stars like Taiwanese pop singer Jay Chou and veteran Chinese actor Huang Lei for voice overs. The studio even reanimated characters’ lips and facial expressions to match them with an entirely different script that makes quips about Chinese food and culture.

Mr. Katzenberg said in a recent interview with The Wall Street Journal that he wouldn’t be surprised if Chinese viewers saw the film twice so they can catch the differences.

“Originally, exhibitors in China felt that the English subtitled version would be 80% of the revenue, while Mandarin would be 20%,” Mr. Katzenberg said. “Then I showed them the different versions and they completely changed their view,” he said.

These kinds of moves to localize a production don’t always work in China, however. “Iron Man 3,” released in 2013 by Disney and Chinese company DMG, attempted to attract Chinese movie-goers by adding a cameo of Chinese actress Fan Bingbing into a special version for China. But Chinese fans weren’t impressed, criticizing the move as an afterthought and ploy for a bigger box office share.

Katzenberg says “Panda” will be different. “We have something that is a beloved franchise in China and a beloved character,” he said.

--Laurie Burkitt. Follow her on Twitter @lburkitt.