The "Pokemon" franchise has remained one of the highest-selling franchises for Nintendo, and according to the Hollywood Reporter, there is an interest to adapt the series into a live-action film. However, three separate studios are currently in a bidding war to keep the film rights, and this contest may cause tension between Japan and China.

According to the report, both Warner Bros. Pictures and Sony Pictures are attempting to attain the movie rights for the "Pokemon" franchise. Warner Bros. recently altered their approach and are dropping smaller films to focus on franchise properties such as the DCEU films and it appears that they are attempting to make a new cinematic universe with "Pokemon."

However, Legendary Pictures has now entered the bidding war. The studio is owned by China's Dalian Wanda Group. According to the report, Japan and China have been going through some tension with their international relations between each other and this could worsen if China acquires the film rights to "Pokemon," a Japanese franchise.

It is important to note that China banned all Japanese films for three years. This ban was only recently lifted. Legendary has already broken into the Japanese film industry given that it was Legendary, partnering with Warner Bros., that produced and distributed the 2014 "Godzilla" film starring Aaron Taylor-Johnson and Elizabeth Olsen.

The report points out that at this point there is no clear indication of which studio will win the bid. Whichever studio does get to own the film rights will potentially have a large opportunity given that the "Pokemon" franchise is one of the most successful video game and merchandising series in the world.

"Pokemon" has released animated films since "Pokemon: The First Movie" came out in 1998, with one new straight-to-DVD film releasing every July. This new film in development will be the first time the franchise will be adapted for live-action.