The director of China's largest and most influential state-run film company called for more favorable regulations and less restrictive government interference in China's film industry at a press conference Thursday.

Yin Li, director of China Film Group and a CPPCC member, talks about Chinese films.?

Yin Li, head of China Film Group and a member of the Chinese People's Political Consultative Conference, said that despite a robust and growing domestic film industry, "very serious problems" exist.

Yin said a regulated film classification system should be created to help diversify films while attracting more audiences. "People misunderstand classification. A lot of people think classification means that the government allows 'unhealthy' films," Yin said. "But actually, classification will protect the youth from improper scenes."

He also said strict laws would also regulate product placements in films, an increasing concern.

While Yin wants more government regulations on those two issues, he wants less government involvement when it comes to censorship. He says government advice on sensitive issues make movies seem unrealistic, especially when compared to films made in the 1980s and 1990s.

"Now, filmmakers seem to lose their voices regarding society today," Yin said. "I think one of the reasons is film censorship."

"The Ministry of Public Security will give opinions when we shoot a police-themed film. The Ministry of Foreign Affairs will advise a film concerning foreign countries," Yin said.

Chinese filmmakers released 526 films last year, bringing in 10 billion yuan at the box office.

"Last year, the State Council issued a guideline to promote the film industry," Yin said. It's aspiring for us filmmakers."

"If the government and people give us more support, I believe we can produce more qualified films to compete with Hollywood," Li said.