China Media Capital and Warner Bros Entertainment are teaming up on a joint venture, Flagship Entertainment Group Ltd, to develop Chinese and English-language movies for the international market, the two firms announced on Sunday.

As a concrete move in cultural exchanges between China and the United States, the announcement came days ahead of the scheduled state visit of President Xi Jinping to the US. Targeting the rapidly growing market for premium content and the increasing demand for high-quality Chinese-language movies around the world, the new entity will combine the expertise of Hollywood's largest studio with China's preeminent investment and operational platform, according to the announcement.

Headquartered in Hong Kong, and with offices in Beijing and Los Angeles, Flagship Entertainment will have full access to the well-established legal and financial systems in Hong Kong and Hollywood, as well as a wealth of filmmaking talent stemming from the long-standing film, television and creative industries of these regions.