Cloud Atlas, adapted from David Mitchell's 2004 novel of the same name and directed by Tom Tykwer, who made Run Lola Run and Perfume, and the Wachowski family partnership of The Matrix fame, is technically a German film, although it has English dialogue. The movie, distributed in North America by Warner Bros and in other territories by Focus Features, is scheduled for release later this year.

The only Chinese element visible so far in the pre-publicity material is the actress Zhou Xun, who plays Yoona-939. Zhou worked as a paid employee, not an equity participant. It is still uncertain whether the film will be classified as a co-production in China or as an import. In the case of co-production, it will not only skirt the quota, but also provide a larger return to the investors.

The Expendables 2 is a slightly different case. It features Jet Li as one of half a dozen aging action stars, a lineup very similar to a Chinese variety show that pulls together all the glittering names of yesteryear. The first film, released in 2010, grossed $103 million in the US and $171 million in the rest of the world. Zhang Zhao, CEO of Le Vision Pictures, revealed that his company is investing in the sequel, budgeted at $100 million, but declined to divulge how much it will invest or any other details of the deal.

As has been previously reported, Beijing-based DMG Entertainment will fund Iron Man 3, together with Walt Disney Co. However, the film will be considered a co-production because shooting will partly take place in China. The producers are looking to cast a 40-year-old Chinese actor in a minor role, but nothing has been finalized yet.

DMG has also backed a Bruce Willis film called Looper, which will be released later this year, and is launching a $300 million fund for similar projects.

Crouching tiger

There are also Chinese companies embarking on China-themed projects, but with an international cast and English dialogue. Tom DeSanto, producer of The Transformers series, is attached to a Chinese project entitled Gods, set in a mystical China thousands of years ago. The participants are touting it as the next Lord of the Rings, even though the script is still under development.

Hollywood movies imported into China through the quota system represent the cream of the crop in terms of earning power. These are the kind of projects Chinese investors are chasing, but they carry huge risks, especially for those who have never before been involved in such high stakes. As a matter of fact, Zhang Zhao of Le Vision, the participant in The Expendables 3, sees its function as mostly learning how to hitch up with Hollywood's operational side.

In a couple of years, it will be clear who has cracked the global film market with leveraged investment in Hollywood tentpoles and who has lost his pants. Meanwhile, Chinese money is chasing big projects and big stars with star-struck excitement and nouveau riche bravado.

Contact the writer at raymondzhou@chinadaily.com.cn