China's animation industry is slightly more than 80 years old and most of its history has happened in Shanghai, now home of a number of first-rate domestic and international animation companies.

California-based Dreamworks Animation SKG Inc, creator of the well-loved Kung Fu Panda and Shrek series, signed agreements on Feb 17 in 2012 with China Media Capital, Shanghai Media Group (SMG) and Shanghai Alliance Investment Ltd to form a joint venture called Oriental Dreamworks.

With an initial investment of $330 million in the joint venture, the Chinese companies will hold a 55 percent stake in the new company while Dreamworks Animation controls the rest.

Notwithstanding this latest shot in the arm, the value of output of Shanghai's animation industry had reached 6.3 billion yuan ($1.01 billion) in 2011, up 23.7 percent year-on-year, taking up about 10 percent of the country's entire animation industry output.

By the end of 2011, there were more than 300 Shanghai-based companies specializing in animation production or animation related businesses such as distribution, 111 of which have new works coming out, up 52 percent year-on-year.

According to statistics released at the Shanghai Cultural and Creative Industries Promotion Conference held in mid-April in 2012, the cultural and creative industries are aiming to reach a value-added of 200 billion yuan by the end of 2012, taking up about 10.6 percent of the city's GDP all in line with the city government's aim to promote the industries as the mainstay industries outlined in its 12th Five-Year Plan (2011-15).

The central government in Beijing has also given much support in recent years.

In 2011, Chinese audiences saw 15 Chinese animation movies put onto the big screen, four of which were co-produced with overseas houses and the rest original works by domestic companies.

By the end of the same year, original animation works in China amounted to 260,000 minutes, a world record the country holds up to now.