It is believed that with the announcement, China aims to create a good mood with the United States ahead of President Barack Obama's planned visit to Shanghai and Beijing in mid-November.

"China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for the Walt Disney Company in mainland China," Robert Iger, president and chief executive officer of Walt Disney Co., said in a statement.

Similarly, Shanghai hopes the Shanghai Disneyland, to be built in the city's Pudong New District, will help attract a greater number of tourists to the city even after the 2010 Shanghai Expo from May to October next year.

Officials at the foreign investment department in the Pudong New District government were quoted by Xinhua News Agency as saying that several major state-owned enterprises in Shanghai would form a joint venture with Walt Disney to invest in the project.

Earlier this year, the Shanghai municipal government and Walt Disney reached a basic agreement on construction of the first Disneyland in mainland China. It will be the fourth Disneyland outside the United States following theme parks in Tokyo, Paris and Hong Kong.