Jack Black's third instalment of Kung Fu Panda is due to start production in August, with a hefty amount of work taking place in China.
A third of the film's production is set to be done by Oriental DreamWorks in China, with the rest being done in the US, according to The Hollywood Reporter.
Oriental DreamWorks board member Peter Li made the announcement at the Shanghai Film Festival at a panel event called Chinese Capital's Long March To Hollywood.
But former Academy of Motion Picture Arts and Scientists Sid Ganis who now works in China said: "Of course there will be Chinese investment in American studios, but a much more important issue to address is the cultural issue... It should be about integration and not conquering Hollywood."
Kung Fu Panda 3 will also feature the voices of Angelina Jolie, Seth Rogen, Rebel Wilson, Dustin Hoffman and Lucy Liu.
The film recently had its release date brought forward from 2016 to December 2015.