China's new film industry law provides the regulation needed to help bring the fast-growing market into a golden era, according to industry insiders.

The law, which took effect on March 1, clarifies punishment for fabrication of box office revenues, increases government investment in the industry and reduces taxes, among other provisions.

Over the past few years, the film industry has developed into one of the most successful fields in China's cultural sector.

According to the State Administration of Press, Publication, Radio, Film and Television, China's media regulator, box office sales last year in the country reached 45.7 billion yuan ($6.64 billion), an increase of 3.73 percent compared with 2015.

China produced 944 films last year, with box office sales of domestic films topping 26.6 billion yuan, accounting for 58.3 percent of all box office sales, the administration said.

The new law will aid the stable development of China's film industry, which has grown rapidly in recent years, Yin Hong, a professor at Tsinghua University, was quoted as saying by People's Daily.

Yin compared the law to a measuring stick for government regulators and film industry professionals to set legal standards in communication, trade and competition.

The law protects intellectual property and delivers a blow to fabricated box office figures as well as pirated copies of films, said Zhang Hongsen, head of the administration's film bureau.

La Peikang, chairman of China Film Co, said that China should promote more movies overseas that tell Chinese stories.

He emphasized the need for cultural confidence, the telling of good Chinese stories and ensuring the sustainable development of the film industry through regulation.

Yin said that movies have an immeasurable value in terms of the country's national image, tourism, advertising, fashion and international trade.

He added that, dating back to World War I, films have been part of the United States' development strategy. China's new law protects intellectual property and encourages film-related merchandise and licensing, which Yin said "reflects the important role of movies in China's overall development strategy".

Yu Dong, CEO of Bona Film Group, a major film distributor in China, said quality movies can't be made in a rudimentary manner for quick profit, but are the result of cultural confidence and the spirit of craftsmanship.

In addition to making high-quality movies, La pointed out the need to address fabrication of box office earnings.

"The film industry law addresses such issues in a legal manner and will bring more order and prosperity to the industry," La said.