- Associated Press - Thursday, April 26, 2012

HONG KONG (AP) - U.S. special effects company Digital Domain Media Group is teaming up with Chinese production company Beijing Galloping Horse Film Co. to tap China’s growing demand for 3-D movies.

The U.S. company said Thursday it will contribute its patented 3-D technology. The Chinese company will provide land for the studio and finance its construction, expected to cost $50 million.

The deal follows other recent Hollywood-China ventures. Foreign studios are drawn to China’s potential.

Growth in China’s box office revenue is on track to make it the world’s second largest movie market after the combined U.S. and Canadian region this year.

Earlier this year, China raised its quota of foreign films to 34, provided the 14 extra ones are in 3D or Imax format.

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