The decision marks a sharp change from two years ago, when China threatened to rein in Disney;s business dealings out of anger over "Kundun" a film about the Chinese occupation of Tibet.

The Chinese screening process for movies is secretive and intertwined with politics. Makers of films critical of Beijing;s policies risk having fils shut out of the market.

The decision to screen "Mulan" only after the official Lunar New Year holiday ends reflects cultural authorities' determination to protect the struggling local film industry.

An official in China Film's publicity department said, "We never planned to show the film any earlier because we have a policy of showing superior homegrown movies during the 'golden time'. . . . Still, we beleive that anytime within winter vacation will be good for cartoon movies, even after the festivalm because most animated filmgoers are students."