Michael Bay's hugely successful 'Transformers 4' has smashed box office records in China beating 'Avatar' and setting a new precedent for Hollywood movies abroad grossing over $220 million.

'Transformers: Age of Extinction' was slated to become one of the biggest movies of all time when it came out in North America, but pundits weren't sure whether Chinese audiences would 'dig' an Americanized blockbuster, with more China image references.

In fact, the movie has outdone The U.S Box Office, and worldwide, it has grossed over $570 million.

Ahead of the movie's release, Paramount and a Chinese luxury hotel got into a legal spin when a product placement deal went bad. It turned out according to several reports that agreements made between the two firms had been 'lost in translation'.

The outcome of this latest triumph in China shows how important the foreign market is to US produced films. With the smashing of all box office records in China this week, we can only expect to see bigger, bolder films hitting Chinese cinemas. Let's just hope, they can get past that 'censorship issue'.