The director has explained that it is important not to ignore the booming film market in China.
"For Avatar we can certainly use Chinese actors as performance capture actors - any accent issue is hidden within the Na'vi accent - or Chinese actors who speak English in the film as Chinese Na'vi," he told 3D Focus.
"We are projecting a future [in Avatar] and if you project that out there is a certain logic to the idea that there would be a number of Chinese among the Earth contingent on Pandora."
Cameron said that while filming was planned for Los Angeles and New Zealand, as in the first film, "there are very specific economic incentives for having both Chinese content and Chinese co-production".
"[The industry] has got to get over the chauvinism of thinking through from a US perspective," he added. "If you want to make movies for the US, fine. If you want to make movies for the global market, think global."
The director recently revealed that he is considering a prequel for a fourth instalment of Avatar.
He previously discussed giving "very serious" thought to shooting the Avatar series in China.