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. The high effective system of moviemaking in American Hollywood is another cause for the fact that American movies’ quality can be so high and they can impact Chinese movie industry. D. Disparity of Investments Between Two Countries’ Movies Another important reason for the big disparity between Chinese movies and American movies is investments. Investments are the essential factor of making an excellent movie although some one denies this point. Without enough investments, every effort would be in vain; on the opposite way, with the support of big investments, the first-class movies can be made. The special effects used in Terminator2 cost 17 million dollars which was fifth of the production cost. However, at present, most Chinese movies lack money when they are shotted. Jin Ji Po Jiang, a Chinese movie called the first breakthrough on computer special effects just cost more than 2 million dollars totally, which is one eighth of the investments put into special effects in Terminator2. Today, Many Chinese movies still belong to low cost movies. Compared to Chinese movies, each Hollywood movie investments are more than 10 million dollars at present, not to mention those blockbusters’ investments. For example, each section movie of the Lord of the Ring’s investments is 90 million dollars averagely, and Terminator 3’s investments are 180 million dollars. The big disparity of investments between American movies and Chinese movies make American movies bring more impact on Chinese movies. E. Differences in Market Operation Mechanism Between the Two Countries In today’s world, 85 percent released movies are made by Hollywood. Hollywood’s movies are so popular both in western countries and eastern counties because of the high quality of these movies as noted above. Beside this, Hollywood have their own whole of operation mechanism for their movies. This system successfully operates movies in moviemaking, distribution, and exhibition fields. Thanks to the advanced operating mechanism, American movies have the complete success and are released everywhere in the whole world. Firstly, the operation mechanism of American movie companies is a good example for Chinese movie circles. American movie industry is dominated by the “Big Eight”. They are Paramount, Disney, Warner Brothers, MGM, Sony, Universal, Twentieth Century Fox and Columbia. Each one of them is much more competitive, compared to any one of Chinese movie companies. Tracing back to 1930, just five companies among those mentioned previously dominated United States’ movie screen: Warner Brothers; Loew’s Inc.; the theater chain that owned to MGM; Paramount; RKO; and Twentieth Century Fox. Each company was vertically integrated; each produced motion pictures and operated worldwide distribution outlets; each had a theater chain. This kind of vertical integration is a competitive system. The companies can make use of their own advantages in the fields of production, distribution and exhibition but not subject to other company’s strategies in the three important phases of movie industry. Facts prove that powerful competitive ability is the key that makes Hollywood’s movies gain the worldwide audience and now they give a big punch to Chinese movie industry although this kind of vertical integration was once doubted involved in anti-monopoly lawsuit. Although three other companies——Universal, Columbia, and United Artists have no chain of theaters, they enjoy significant holdings. Univers