Hong Kong film director John Woo waves to photographers after receiving an honorary degree of Doctor of Social Sciences at a ceremony at the Baptist University campus in Hong Kong. [AFP]

"Chinese film has made great strides in technical skill, creativity and many areas. I want to prove that we can make a Hollywood-style big production in China, to allow our technical talent to show their skills in all areas," Woo said at a cooperation signing ceremony with China's state-run China Film Group in Beijing.

Footage of Monday's ceremony was posted on the Chinese news Web site Sina.com Tuesday.

China has gradually deregulated its film industry in recent years as its moviegoing audience grows, allowing private companies, instead of state-run movie studios to shoot films. Production budgets have risen. Famed director Chen Kaige's mythology "The Promise" cost US$35 million (euro27.3 million).

Woo's business partner Terence Chang said in April he hopes to keep the budget of "Battle of Red Cliff" under US$50 million (euro39.1 million).

Woo also said Monday he wants to use the film to educate foreign audiences about Chinese culture.

"As a Chinese who has worked abroad for so many years ... I want to use a different angle to deepen foreigners' understanding of the Chinese people," he said.

Woo made his name in Hong Kong with films like "A Better Tomorrow" before moving on to Hollywood, where his credits include "Broken Arrow," "Face/Off" and "Mission: Impossible II."

The Battle of Red Cliff is a key war in 208 that determined the geography of the "Three Kingdoms" period, when China had three separate rulers.

"I think this battle can best reflect how wise and united Chinese people are," Woo said.

Producer Chang said earlier the Chinese government views "Battle of Red Cliff" as a showcase for Chinese history and wants it to be released in the leadup to the 2008 Beijing Olympics.

Woo said confirmed cast members of "Battle of Red Cliff" include Chow Yun-fat, Cannes winner Tony Leung Chiu-wai and Taiwanese model Lin Chi-ling. Chang said in April shooting is due to start in March in China's northern Hebei province.

Woo said Tim Yip, an Oscar winner for his work on "Crouching Tiger, Hidden Dragon" will design the production and famed Chinese cinematographer Gu Changwei, a frequent collaborator with Chinese directors Chen and Zhang Yimou, will helm the camera.

He said he plans to choose U.S. companies to handle special effects.