A new Chinese joint venture said Monday that the third installment of DreamWorks Animation’s “Kung Fu Panda” will be made in China as a co-production, the first for any major Hollywood animated feature film.

“Kung Fu Panda 3,” set for worldwide release in 2017, will be the debut feature-length animated film to be created by Oriental DreamWorks, a Shanghai-based entertainment company launched in February that will develop and produce Chinese animated and live-action content for distribution within China and around the globe.

The company is a joint venture between the Glendale-based DreamWorks Animation and China’slargest media companies -- China Media Capital, Shanghai Media Group and Shanghai Alliance Investment Ltd.

The “Kung Fu Panda” movies have been very popular in China, and co-producing the third film in the country could be a financial windfall for DreamWorks Animation, allowing the studio to collect 50% of box-office ticket sales in China compared with 25% for a typical foreign film that is released into China under its quota system. Last year’s “Kung Fu Panda 2" grossed $92.1 million in China.


“Kung Fu Panda 3" is the latest high-profile Hollywood film to be co-produced with China. Other co-productions include “The Expendables 2" and the upcoming movie “Iron Man 3" from Disney/Marvel Studios.

Oriental DreamWorks announced the co-production during a ceremony Monday to mark the opening of its headquarters in Shanghai.

The China joint venture also said it would invest $3.14 billion to open a shopping, dining and entertainment hub called “Dream Center” in Shanghai set to open by 2016.

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