China and the US reached an agreement Friday that would allow an additional 14 foreign movies to be shown in China each year, as long as they are played in the 3D or jumbo-sized IMAX (IMAX.NYSE) format, The Wall Street Journal reported, quoting a spokesman for the Motion Picture Association of America. Studios whose movies play in China will also now collect roughly 25% of the box-office proceeds after costs, up from the current range of 13.5% to 17.5%, the spokesman said. In related news, DreamWorks Animation SKG (DWA.NASDAQ) announced that it struck a deal to set up a production studio in Shanghai as a joint venture with two Chinese media entities and the investment arm of the Shanghai government. The new venture, Oriental DreamWorks, will develop animated feature films, TV shows, consumer products and theme parks. It plans to release its first animated film by 2016 and two films per year by 2018.