The argument in this article is lots of Western backed movies are doing well in China. Another reason I have heard is China is where the growth is in Movies, where other markets are no growing. Another reason is the Chinese government is giving support to build an indigineious Chinese movie industry. They see Hollywood as being a key part of American soft power, and would like to duplicate it.
What I see as a risk, is US studios being swayed by Chinese influence, such as happened with Red Dawn. The Chinese government has, and will hold grudges against any movie studio that is negative in any way towards China. In Red Dawn, the Chinese invaders miraculously became North Koreans. The next Iron Man is going to be partially filmed in China.
Why Hollywood Studios Need to Learn Chinese - The Wrap
And another view, but misses some key points.
China Can Be a Gold Mine for Hollywood, But... The Wrap
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