Summer Palace tells a love story set against a backdrop of historical changes taking place in China and Germany beginning in the 1980s. Earlier rumors said that the censors requested changes because of "sensitive subject matter" related to some of the historical changes of the 1980s, and Lou Ye was said to have refused to alter his movie.

Other rumors said that the movie was being held up because it had received international financing. A producers' representative told The Beijing News that this was not the case - investors were all domestic, although the film had received donations from overseas and had used income from overseas presales during production. Finally, there was controversy over who had submitted the film to Cannes in the first place; though the script had passed inspection, the movie was unfinished and ought not to have been put up for awards prior to receiving final approval.

But this latest rejection comes for technical reasons, say the producers - "the picture was too fuzzy, and the sound was too low." According to TBN

"Lou Ye tried out some new artistic methods in this film, but the committee of censors judged it as not being up to technical standards. This struck a blow to the director, and he cannot accept this result at present." Ms. Nai An says she believes that Lou Ye may have been pursuing visual effects and so used fuzzy lenses, but that the censors were unable to accept this kind of artistic experimentation. "Lou Ye needs to consider calmly what it is he is pursuing.

If the producers' side of the story proves true, it may be that China has narrowly dodged a bullet here - sending anything but a slick, polished exhibition piece to Cannes could betray the spirit of the festival and tarnish China's image in the process.

Update: Summer Palace did end up screening at Cannes - a "first-rate drama," the Guardian reports.

Update II: Lou Ye got punished. See the end of this post. Also, an interview with Lou in the Guardian.