Academy of Motion Picture Arts & Sciences has rejected "Lust, Caution"

Ang Lee's spy film "Lust, Caution" has been pulled out from the Oscar's Best Foreign Film nomination by Academy of Motion Picture Arts & Sciences (AMPAS).

AMPAS executive Bruce Davis said "Lust, Caution," was reviewed which the committee decided there wasn't enough Taiwanese participation on the film. Only part of its investment was from Taiwan. Also, most of the film's collaborators are not from Taiwan.

This is a big blow to the national pride of Taiwan. "Lust,Caution" has a good chance of winning an Oscar.

''Lust, Caution,'' about the sexually charged relationship between an undercover activist and the Japanese-allied intelligence chief in World War II-era Shanghai.

Taiwan has replaced "Lust, Caution" with director Chen Huai-en's "Island Etude".

Ang Lee won best director Oscar for the gay romance "Brokeback Mountain" last year and "Crouching Tiger, Hidden Dragon" won best foreign film for Taiwan in 2001.