American animated filmmaker Walt Disney Studios, one of the five major business segments of the Walt Disney Company, will soon develop Disney movies with China's Shanghai Media Group Pictures (SMG).

The two movie production companies have recently signed a multi-year agreement that calls for joint movie development under the Disney brand. The movies will be released in China and other markets around the world.

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Shanghai Media Group Pictures, a subsidiary of Shanghai Media Group, will utilize its rich media resources and understanding of the Chinese market to make its partnership with Walt Disney Studios a success.

Under the agreement, Walt Disney will pair American writers with writers and filmmakers in China. Each film will feature Chinese elements with the international markets as target.

Disney Studios President Alan Bergman said the collaboration means global Disney fans can expect an exciting chapter of new Disney stories.

The partnership will operate under the supervision of Tony To, Disney Studios' executive vice-president of production.

Disney's partnership with SMG Pictures is seen by experts as another attempt by the American film studio to crack into China's rapidly growing movie industry.

In 2013, Disney made efforts to break into the Chinese film market with the superhero film, Iron Man 3. The movie included special footage featuring local actress Fan Bingbing. The effort paid off well for Disney as the movie grossed more than US$120 million in China.

China's box office continues to be the second-biggest in the world, behind only the United States, after it topped US$3.6 billion in 2013. The figure is 27% higher over 2012, said Artisan Gateway, Asia's film and cinema industry consulting firm.

However, China is still far away from overtaking the US, which registered an estimated US$10.9 billion in 2013.

Seven of the 10 highest-grossing films in China last year were Chinese, led by Stephen Chow's "Journey to the West: Conquering the Demons", which took in about US$207 million. Hollywood films "Iron Man 3", "Pacific Rim" and "Gravity" made it to the top 10 movies in China.

TagsWalt Disney, SMG, shanghai media group pictures