(Yicai Global) April 23 -- Chinese authorities have warned that they will cancel television shows and films made by production agencies who pay actors above the recently implemented salary cap.

The China Alliance of Radio, Film and Television Production Committee will temporarily or permanently suspend projects and revoke production licenses at violating agencies, it said in a post on WeChat on April 19 while reiterating the salary restrictions introduced in November and encouraging executives to self-assess their firm's pay structure.

Chinese film and TV firms have always been criticized for overpaying their stars, and the State Administration of Radio, Film and Television brought in new rules last year to put a stop to the practice. The cap prevents producers spending more than 40 percent of a show's overall budget on talent and from a single actor collecting more than 70 percent of all wages paid to on-screen workers.

In the past, some had blown as much as 80 percent of their budget to lure in big-name stars and spending 50 percent was common, but this led to corner cutting elsewhere and resulted in low-quality entertainment.

Editor: James Boynton