Each country can select one film, which will compete for five finalist spots. There was speculation that both China and Taiwan would try to enter Ang Lee's Venice Film Festival winner 'Lust, Caution'. Peter Chan's 'Warlords' has been taken off the table by its US funders (who are planning a US release in 2008), Jiang Wen's 'The Sun Also Rises' has not shown traction in its theatrical release.
But with the Mainland China theatrical release of 'Lust, Caution' delayed until November due to the Communist Party Congress, China couldn't even nominate 'Lust, Caution' even if the government did want to create an Oscar incident with Taiwan.
That leaves 'The Knot' as the most likely Chinese nominee - a revolution era blockbuster melodrama that did well at the Mainland box office but didn't necessarily do well with critics.
