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rnment’s week awareness of protecting domestic movie causes a more impact on Chinese movies. The importance of the Chinese market to American movie industry was clearly demonstrated during the congressional debate over granting China Permanent Normal Trade Relations. As that debate was reaching a climax in the first half of 2000, the movie industry brought out its biggest guns. A new lobbying group called the China Trade Relations Committee was established and included the top executives from seven major American movie studios. Everyone can see the ambition for Chinese market of American movies. In the urgent situation, the Chinese government did not take any protection tactic to save the weak Chinese movie industry. Unlike the Chinese government, the Korean government set the ration policy to protect their domestic movie industry when American movies’ attacks came. They gave a certain ration to domestic movies to make sure that theaters exhibit domestic movies 14 days in one year. China did not imitate its neighbor and did not take any effective tactic to reduce the impact of American movies’ attack; either On the other hand, the Chinese government still restricts the production right of many private movie-making companies to a certain degree. Although the Chinese government has innovated for several times, the results proved that those innovations are not complete. To perfect the Chinese movie industry, the Chinese government still has a long way to go. Ⅲ. Methods of Reducing Impact All the points listed above suggest the causes of the impact on Chinese movie industry made by American movies. How to defend domestic movie industry when American movies’ attack comes is a big problem faced by the Chinese government and Chinese people. For how to solve that problems, there are several suggestions below. A. Lessening the Disparity Between American and Chinese Movie Quality Since the disparity between American movies and Chinese movies is a major fact that brings heavy attack to Chinese movie industry, the first step should lessen this huge disparity. It should be based on the situation of developing level of Chinese movie technology and increasing the application of high technology in making movies. On the other hand, the education system should pay attention to training the talents acknowledged in making movie technology, as well as the directors, screen-writers, actors and so on. As the workers who contribute to Chinese national cultures, Chinese movie directors should pay attention to the essence of Chinese splendid cultures instead of swimming on the surface in this vast culture sea to adapt western audience and Oscar’s umpires’ tastes sequaciously. On the other hand, their work should meet Chinese audience tastes to try to shot the movies that have valuableness in both entertainment and education. B. Developing the Market Operation Mechanism Next, the Chinese movie industry cannot make progress without a healthy operation mechanism system. The movie mega-industry of Hollywood has already raised a banner to Chinese movies. An innovation of Chinese movie operation mechanism is instantly needed. To enhance the strengths of Chinese movie companies and to prompt the cooperation between production, distribution and exhibition companies is an effective way to lead Chinese move industry to stepping out of the awkward situation. On the other hand, the cooperation between the movie industry and its sidelines is also needed. The