Beijing-based XFMedia Group has announced a strategic alliance with China Film Group to collaborate on the production, distribution and international sales of Chinese films, including Sino-US co-productions.

XFMedia has partnered with David Lee, former vice president of The Weinstein Company's Asian Operations, to establish a new subsidiary Xinhua Media Entertainment as a full-service film production and investment company based in Beijing, with a satellite office in Los Angeles.

XFMedia CEO Fredy Bush said the strategic alliance would collaborate across various sectors including development, production, post-production, domestic and international sales and distribution of filmed entertainment content.

Additionally, Bush said China Film Group chairman Han Sanping has authorised Xinhua Media Entertainment to act as its US representative in facilitating the negotiation of potential co-productions.

State-owned China Film Group Corporation is seen as the most influential film enterprise in China. According to Chinese regulations, all Sino-foreign co-productions are managed by China Film Co-production Corporation, a CFGC subsidiary.

Lee, who is accompanying Han Sanping on a tour of Los Angeles this week, has 11 years experience in the entertainment industry. He oversaw the $285m Asian Film Fund during his post at TWC. He is also the co-executive producer of Jet Li and Jackie Chan vehicle The Forbidden Kingdom, which will be released worldwide this weekend.

Xinhua Media Entertainment is expected to serve as a bridge between China Film Group and US studios on major co-production projects. Bush said in a statement that the company aims to 'provide a full range of production and deal structuring services for high-profile motion picture co-productions between China Film Group and producers from around the world.'

In November 2007, during a speech at a Beijing university, Han Sanping revealed the company's plan to cooperate with Hollywood stars such as Will Smith, Keanu Reeves and Jet Li on at least three English-speaking co-production projects.