China's film industry is to establish a movie rating system, to promote fair competition between Chinese and foreign films.

A senior official with the State Administration of Radio, Film and Television says the rating system being drafted will reform the current censorship and help better integrate Chinese films into the international market.

The new system is intended to promote a better understanding of a film's contents while also allowing the public to accept films with new, possibly controversial subject matter.

Discussions regarding the establishment of a new rating system are taking place at the week-long Golden Rooster and Baihua film festival, which are known as China's Oscars.