China's animation industry had its first heyday in the 1960s, when the film Uproar in Heaven was screened at renowned international film festivals.

But the industry has struggled of late, burdened by a lack of original ideas and professionals, said experts.

Some local animation firms said they are looking forward to learning from DreamWorks, especially from its world-leading 3D technology.

During a visit to Shanghai in March, Jeffrey Katzenberg, chief executive officer of DreamWorks Animation SKG, said the Shanghai studio will concentrate on stories that "have a connection to the culture, history and literature of China".

He also promised to bring the 3D technology that DreamWorks has developed during the past five years to Shanghai.

China has become one of the biggest film consumers in the world, as film industry revenues surge at an annual rate of 30 percent, said Zhang Pimin, deputy director of the State Administration of Radio, Film and Television.

China is also expected to become the second country in the world to have more than 10,000 movie screens by the end of 2012, following the US.

Katzenberg and Li both said on Tuesday that the Dream Center project will not be a threat to the Shanghai Disneyland.

"The Dream Center is different from any other large cultural project in China, including Disneyland," Li said.

Disney said in April it had joined an initiative to develop Chinese animation productions.

It will also co-produce Iron Man 3 in China with DMG Entertainment, as Hollywood seeks to tap into the fast-growing movie market.

Chinese box office revenue increased an annual 35 percent to $2 billion in 2011, making it the second-largest international market behind Japan, according to the Motion Picture Association of America.

AP and Xinhua contributed to this story.

shijing@chinadaily.com.cn