Shanghai now has the right to censor film scripts born in the city instead of sending them to the central authority in Beijing.
The state Administration of Radio, Film and Television declared in October that from December 1 Chinese film scripts would no longer need to be censored by the Beijing-based bureau.
Shanghai, Nanjing and Changchun are pilot cities for the "autonomous supervision right," which means the radio, film and television bureaus in those cities can vet the scripts.
However, the right doesn't include scripts about revolution history or special topics, government-sponsored scripts and movies with overseas investment.
Industry insiders consider the new policy a big reform of China's film industry, which loosens some restrictions and boosts development of the industry.
For a long time, films in the country were considered simply a means of moral education and had to undergo strict censorship.
But analysts said that, with the rapid economic and cultural development in recent years, more and more people have realized movies are an art and an industry.
Most film producers and directors agree the policy is good news and are glad to see the change.
"The rule is going to break the monopoly of the administration," said Jia Zhangke, a Beijing director who has won dozens of awards at international film festivals.
"I think because of the freedom brought by the new policy, local capabilities in film producing will grow rapidly and lively energy will be activated around the country. That's good to see."
Jia is also optimistic about the future of the city's film industry.
"Shanghai was once really strong in the movie business. The new policy brings great hope to the city. I believe the prosperity of the city's movies will be visible again in the near future," he said.
Some producers were less enthusiastic.
Li min, director of the production management department of the Shanghai Film Group, said: "I don't think it makes a big difference.
"Anyway, the supervision was just transferred to a local government agency, not our own studio. The criteria now are almost the same all over China, which may not bring big freedom to local movies."
(Xinhua News Agency December 2, 2003)