chinese bad guys in "men in black 3." >> you arrest me, that's a hate crime. >> williams: but dede nickerson, the china-based american producer, thinks u.s. studios are learning how to avoid that kind of meddling by the government. >> nickerson: you'll see less that i would say that those decisions are going to get made when a film is being green lit to be careful about what may be offensive to chinese people or to the chinese authorities. because... >> williams: so they won't need to cut... cut scenes. >> nickerson: they won't need to cut because... >> williams: they just won't make them in... >> nickerson: because... >> williams: ...the first place. >> nickerson: ...they won't make them in the first place. >> williams: self-censorship is the cost of doing business in china, and a price u.s. studios are willing to pay. but hollywood's biggest challenge isn't chinese government intfe it's competition from a young and dynamic industry. >> nickerson: they are smart. they understand storytelling. they are super well-versed in what works in their own country. they are super well-versed in what w

dede nickerson: today, if you sit in a green light meeting in a hollywood studio at any of the studios, at any of the major six studios there, china is part of >> nickerson: well, they have to. >> williams: "...like this film?" >> nickerson: they... they have to because oftentimes the chinese box office is larger than the u.s. box office. especially for the big blockbuster films. >> williams: blockbusters like "transformers 4," which made $300 million in china, was partly filmed there and co-stars li bing bing. but the chinese government has a quota system, which only allows 34 foreign films into the couner to get around the rule, hollywood has been co-producing movies in china with local studios. >> williams: "kung fu panda 3" was animated in california and shanghai at the same time, and >> i lost my father. >> i am so sorry. >> co-produced by dreamworks and its spin-off, oriental dreamworks. then-c.e.o. james fong showed us how they were tailoring the movie for both audiences. is actually we are re-animating everything around the mouth and the throat. so when you look at a chinese ve

dede nickerson is an american film producer who's spent the last 20 years making movies in china. >> dede nickerson: today, if you sit in a green light meeting in a hollywood studio at any of the studios, at any of the major six studios there, china is part of every green light discussion. >> williams: they're wondering, "will chinese audiences..." >> nickerson: well, they have to. >> williams: "...like this film?" >> nickerson: they... they have to because oftentimes the chinese box office is larger than the u.s. box office. especially for the big