"The entertainment factor is hardly seen in Chinese animated products, as the producers pay more attention to the function of education," Lu Chuan, a young Chinese director, wrote in his blog after watching the movie.

A recent investigation by China Youth Daily, a Beijing-based newspaper, shows an awkward phenomenon that few Chinese are willing to watch domestic animated products.

About 62.4 percent of survey respondents said that they prefer U.S. animated works, 45.9 percent prefer Japanese animation and only 14.2 percent favor Chinese animated movies.

These statistics clearly show the true situation of the Chinese animation industry. To improve the quality and competitiveness of domestic animated products, SARFT issued a regulation in February, stipulating that from May 1 this year, the time slot for animated products made in China on all TV stations will expand from 5-8 p.m. to 5-9 p.m.

But the protection measure is limited and will not resolve the problem, said CUC's Lu.

What is an effective way to save the weak animated industry in China? Most Chinese artists agree that China needs a mechanism to industrialize traditional culture and make cultural products oriented to the world market.

"In other words, we may have great, creative ideas, but we lack the environment or a platform to make these ideas become reality," said Wu Jiang, Director of the China National Peking Opera Co.

It is sure that in the near future, Chinese animation artists will continue to meet more and more challenges from their foreign counterparts. The reality is that apart from Dream Works' Kungfu Panda, Disney has also finished a panda-themed movie, titled Touch of the Panda, which will be screened next year. This is the second time that Disney has used a topic related with China after last year's Secret of the Magic Gourd.

Chinese animators are sure to continue feeling the pressure.