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I suppose another option for China would be to prohibit dubbing of foreign films, allowing only for sub-titling. This would mean that original Chinese-language films produced abroad could still compete side-by-side with those produced in China itself. After all, some people don't enjoy having to read subtitles while watching a film.|
I don't know how well this would help the cartoon industry though, seeing that there is no original version. Since all cartoons are dubbed (after all, a cartoon character can't speak on his own), such a law would effectively change all cartoons into silent movies. So I suppose cartoons would still need to be exempted from such a law. In this respect, while it may help the film industry as a whole in such a way as to not discriminate against foreign-made films (after all, they'd all technically have to meet the same language content requirements, and this would apply to both domestic and foreign equally), it still wouldn't help the cartoon industry per se.
Or another option might be to require the cartoon to register internationally in a particular language (although this would still require international agreements), with all other language versions being subscripted and not dubbed, as per the same law for films.
This would mean that foreign cartoons, unless registered as originally in Chinese, would have to be subscripted. This would certainly turn some children off. But at least it would put everyone on an equal palying field as far as the WTO is concerned in that it would technically not be discriminating against nationality sinse all films, domestic or foreign, would still have to meet the same standards. So if a British producer wanted to make a cartoon and register its original language as Chinese, it could then compete freely with all other Chinese-language movies.
At least it would put them all on an equal playing field.