This is the kind of news item that burns through my guts: according to Variety, producer Fang Li and co-production company Beijing Laurel Films have been banned from any involvement in the film business for two years by the State Administration of Radio, Film and Television (SARFT, AKA Film Bureau) in China. The Film Bureau is responsible for censoring materials that might be objectionable to the Mainland Chinese government or cultural standards.

The reasons for the ban are related to director Li Yu's Lost in Beijing. (That's her in the photo with Fang Li.) Monika Bartyzel first wrote about the story nearly a year ago when the Film Bureau banned the film from screening at the Berlin film festival. As Monika noted, Lost in Beijing "involves a relationship between the boss of a Beijing massage parlor (Tony Leung) and his female worker (Fan Bingbing)." The filmmakers refused to edit the film and screened it anyway; in his review, Erik Davis said the picture includes scenes "that shed a negative light on China," but overall the material was "far from risky," at least from the perspective of an American audience member. He thought Lost in Beijing was "good but not great."

The controversy appeared to have died down by the time the film hit Chinese theaters on November 30, but the ban has just now been handed down. Variety says that the crux of the ban is the charge that the filmmakers illegally distributed "unapproved and pornographic clips online," according to the Film Bureau. Producer Fang told Variety that one of their "unprocessed, unedited images was stolen and distributed on the Internet." He said that he was shocked by the ban and will meet with the Film Bureau next week to discuss the whole mess. Fang also produced Lou Ye's Summer Palace; that film screened at Cannes without permission, resulting in Ye being banned from the industry for five years.

Controversy swirled around Yu Li's Lost in Beijing prior to it arriving in Berlin, as Chinese censors threatened to block the film from screening unless Li made certain cuts that were crucial to the plot. Of course, said cuts involved removing scenes that shed a negative light on China; like a doctor taking a bribe, prostitution shops and something to do with the heavy sex scenes. Needless to say, the film did make it in and, from what we were told, the version that screened for the press was uncut. Though the finished product was far from risky material (to this American audience member, at least), pic's carefully layered script and outstanding ensemble cast helped rise it above a slew of mediocre fare ... but, it remained hovering beneath fest's best pics.

Sprawling shots of Beijing skyscrapers greet us to open the film; most of them under construction as if to foreshadow the birth of something new. Like a lot of girls her age, Liu Ping Guo (Fan Bingbing) struggles to get by; between her income as a foot masseuse and her husband's (Tong Da Wei) as a high-rise window cleaner, the two can just barely afford a dingy apartment and life's most sacred essentials. For now, their marriage is kept secret -- for Liu could be fired if her boss (Tony Leung, as a multi-millionaire who's married to an elegant woman, yet spends most of his time paying for high-priced prostitutes to visit him in hotel rooms) were to find out she was attached. While no sex takes place at his masseuse parlor, he likes his pack of girls to be young, single and flirty. The more they flirt, the more money comes in.

The main awards for the 57th Berlin International Film Festival will be given out tonight during a ceremony at the Berlinale Palast. I will attempt to watch the ceremony on television here (sorting through the language barrier) and let you know who won as soon as possible. In the meantime, here are my picks to win the major awards, as well as who I think should win:

Golden Bear: Audience favs were Irina Palm and Hallam Foe, so I would not be surprised if one of those two films took home the prize. Press I've spoken with fell in love with Yella, and The Counterfeiters slid its way into many conversations toward the latter part of the week. Lost in Beijing would be the surprise underdog win, but don't count out I Served the King of England which also picked up steam in these last few days. Pick to win: Irina Palm. Who should win: Yella

Best Director: Though, overall, it wasn't a dazzling year for films in competition, the one thing they all shared was some fabulous directing. However, we're in Germany, and since I do not think Yella will win the Golden Bear, director Christian Petzold will most likely be given a best director award instead. Pick to win: Christian Petzold. Who should win: Christian Petzold.

Best Actress: By far, this is the toughest category to sort through, as there are plenty of top-notch performances to choose from. The way I see it, this category comes down to four women: Marion Cotillard (La Vie en rose), Marianne Faithfull (Irina Palm), Ramola Garai (Angel) and Fan Bingbing (Lost in Beijing). Cotillard was the early favorite, but Faithfull's performance in Irina Palm as the widowed grandmother working in a sex shop took center stage once that film premiered. Still, there's no denying Cotillard is the true winner here ... even if it does feel like La Vie en rose first screened for press decades ago. Pick to win: Marion Cotillard. Who should win: Marion Cotillard.

Best Actor: A harder category to pick; no real stand-out performances could be found (by me, at least) this year. Lots were raving over young Jamie Bell's extremely Sundance-ish role in Hallam Foe, though I personally was blown away by the performances from both male leads (Tony Dawei, Tony Leung) in Lost in Beijing. Pick to win: Jamie Bell. Who should win: Tony Dawei.

If there's one thing the films here in Berlin have in common (at least with most of the flicks I've watched) it is sex ... and lots of it. Just today, both films (Hallum Foe and Lost in Beijing) I saw had some pretty intense -- and well justified -- sex scenes. Yesterday, Bordertown included a steamy sex romp (you go J-Lo!), and the day before both 300 and Yella tossed in some between-the-sheets action. But I must say, out of all this sex, none of it is gratuitous.

The award for the strangest sex has to go to Hallum Foe, which features Jamie Bell (Billy Elliot) as a teenager obsessed with the recent suicide of his mother. He's collected his mother's old make-up, her old dresses, her old passport and, when he leaves home (after having sex with his stepmother!), he begins following a woman who looks just like his mother. And yes, they have sex. And yes, she digs the whole warped thing. On the flip side, Lost in Beijing (whose tagline should read: Who's Screwing Who?) featured a number of sexual trysts, all of which had a different purpose and meaning. And yes, the film (which Chinese censors threatened to chop up) was screened uncut. Lots of films. Lots of sex. Lots of stories to be told.

With that said, above you will find my final (and favorite) video diary from here at the 57th Berlin International Film Festival. In this installment, I sit down with David Hudson (GreenCine Daily), Andrew Grant (Filmbrain) and Aaron Hillis (Cinephiliac) to discuss the second half of the Berlinale, which films truly shined (Yella) and which failed to hit the mark (300). Stay tuned to Cinematical, as I have a lot of reviews to catch up on and will be posting them throughout the weekend and into next week.

(Note: Video may take a little while to load. But hang tough, it's a fun one!)

Last week I brought you the news that Chinese director Li Yu's new feature, Lost in Beijing, was banned by Chinese censors from being screened at Berlin. Their options were few -- give up on the German fest, go anyway and face a moviemaking ban like Lou Ye or edit their film into something the censors would find acceptable -- which would be hard considering the fact that the movie is about a love story set in a Beijing massage parlour. However, in a shocking twist, it seems that the Chinese censors are lightening up a little.

They've offered a compromise with Li Yu -- if she cuts 15 minutes from her film that deals with class conflict and rape, then they will allow it to head to Berlinale. According to Fang, this means cutting two specific pieces of the film -- a love affair between a window-washer and a rich man's wife, and a country girl's descent into prostitution after getting fired from a big-city job. Fang is now heading to Bangkok to rush the film through its final postproduction, and to dicuss options with the film's mainland distributor. According to Films Distribution, even if the Berlin audiences see an edited version, a director's cut will be screened for potential buyers -- but the final say remains with Li Yu, who could face serious professional consequences if she does.

As for the censors, Fang thinks that the Film Bureau is trying to save face by offering a compromise. He, therefore, gives "a little credit to the FIlm Bureau officials, but none to the review committee." Why? Fang says that other cuts demanded by the committee included a close-up of China's national flag and a Mercedes driving over a puddle in a dark alley. Sounds strange, doesn't it? According to Fang, these decisions reflect China's plan to present a clean/stable country for next year's Beijing Olympics. Luckily these censors weren't in LA in '84, because they probably would've shut down half of Hollywood.

For all the plights of North American filmmakers, there's always someone, somewhere who has it worse, and it's usually directors in China. Chinese laws are quite strict, which often leads filmmakers to be incredibly creative in showing certain themes -- especially sex, as I briefly discussed in November. Director Li Yu is the latest casualty of strict Chinese censors. Her film, Lost in Beijing, was to compete at the Berlin International Film Festival this month, but her country has banned her from bringing the film to the fest. The film involves a relationship between the boss of a Beijing massage parlor (Tony Leung) and his female worker (Fan Bingbing).

According to Producer Fang Li, the ban states: "According to current regulations, your film needs further modifications and therefore is not allowed to go for the 57th Berlinale." This is, obviously, a huge blow to the film, as the festival begins in a week. He's also quoted as saying that Li Yu "is not in a mood to do anything." I'm not surprised! While the censors are open to further editing by the filmmaker, Fang has asserted that to do so would destroy the film. They plan to lobby the Film Bureau as long as they can, before deciding whether they want to ignore the ruling and attend the festival anyway. Fang also produced Lou Ye's Summer Palace last year, which was brought to Cannes without China's approval -- and ultimately led to the director being banned from filmmaking in China for the next 5 years. Hopefully Li Yu won't have the same fate.