CANNES — Kate Hudson and Ken Watanabe are set to star in Bruce Beresford’s “A Dream of Red Mansions,” with Capitol Films handling international sales.Inspired by a true story, it’s an epic romance set against the backdrop of the Chinese Revolution in 1949. Hudson plays an American photojournalist who falls for an idealistic revolutionary (Watanabe). Production is scheduled to start in October in Taiwan and the U.K. Script is by Donald Martin. Producers are Michele Berk of Lotus Pictures, Julia Palau of Tusk Prods. and Anna Chi, with Alan Ladd Jr. and Matthew Payne exec producing. Toshiba Entertainment has already picked up Japanese rights to the project.