The governments built the studios mostly to follow the central government's order to revitalize China's weak cultural industry and boost investment. Hundreds of studios sprang up overnight in old factory workshops, villages and sightseeing spots in second- and third-tier cities.

Many were deserted soon after one TV series or a film was shot. The artistic innovation and postproduction are mostly done in bigger cities like Beijing and Shanghai because of the rich pools of professional talent there.

Huallywood embraced the lessons from such experiences. "We are confident with the prospects of China's film market, and we made a priority of the talent issue from the very beginning," Yan said.

Huallywood offers preferential policies not only for investors and companies, but also for artistic talent.

"As long as you think you have an artistic dream and the talent to pursue it, we provide you a living space and a working environment for free to help you use your talent to realize your dreams," said Shi Juan, Huallywood's general manager.

Yan said: "Talent is what we need most. If we have enough talent, we can naturally attract more investors. The postproduction and creation stages of the studio can also take root in Wuxi."

Wuxi government provides monthly subsidies of about 500 yuan to college graduates working there. It is the only city government in China to do so.

A large number of college students and independent artists flock to Huallywood. Hundreds of postproduction and artistic creation firms from home and abroad set up branches in the Wuxi studio. Some even moved to Huallywood outright because of sufficient human resources, low housing rent and low tax rates.

In the studios of a postproduction company that had moved from Hong Kong, which declined to be named for this report, about 100 young people are busy with the last phase of digital processing of the special visual effects for a Hollywood blockbuster that will be released soon.