China's box office revenues surged 36% to $2.7bn (ï¿¡1.8bn) in 2012, the Motion Picture Association of America said.
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The surge came after China eased some restrictions on the number of foreign films allowed to be screened.
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Last year, it agreed to allow an additional 14 Imax or 3D films over and above the quota of 20 foreign films.
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Beijing also increased the amount of revenue foreign movies are allowed to collect from distribution in China to 25% of overall ticket sales from the earlier limit of 13%.
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Industry players said box office sales in China had the potential to grow even more if Beijing eased the restrictions further.
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"China is building about ten screens a day" said Chris Dodd, chairman and chief executive of the association.
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"There is a voracious appetite for product. Our films have done consistently well there."
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The US movie industry has long complained that the limit fuelled demand for pirated copies of films, which are widely available in China.