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.