Movies

China to reduce the number of Hollywood films allowed amid trade war

BBG News

China intends to decrease the screenings of American Hollywood movies within their densely populated nation, potentially limiting access to a significant market previously crucial for the distribution of U.S. box office hits, as trade disputes heat up.

On Thursday, President Trump increased tariffs on Chinese imports to 145%, following a decision made the previous day to temporarily halt plans for raising tariffs on most other nations’ goods. In response, China’s administration led by Xi Jinping has remained resolute, pledging to continue fighting to preserve their economy up until the very end.

On Thursday, the China Film Administration hinted at limiting the number of U.S. movies allowed entry into China, without explicitly imposing a complete ban. The agency did not provide a specific quota for releases, but instead stated they would abide by market principles, honor audience preferences, and gradually decrease the number of American films imported.

Earlier reports hinted at potential Chinese restrictions on Hollywood films, a move that could critically impact entertainment firms already grappling with reviving their film industries following significant obstacles such as the pandemic, labor disputes, and dwindling movie pipelines.

For companies like Walt Disney, Warner Bros. Discovery, and Sony Pictures, international distribution plays a crucial role since over half of their box office earnings originate from moviegoers outside the U.S.

Over the past decade, Chinese business for Hollywood hasn’t been as strong compared to before. This is due to China’s significant investment in growing its own domestic film industry. Since 2020 and the emergence of COVID-19, there has been a noticeable decrease in China’s interest towards U.S. films, which has led to somewhat strained relations between the two powerful nations on the global stage.

Last year, it became apparent that there was a thaw occurring, as evidenced by the fact that 42 American movies were screened in China, as stated by Omdia analyst David Hancock.

In the realm of cinema, I found some impressive achievements last year that deserve recognition. Specifically, two American films broke the $100 million mark in ticket sales in China – Disney’s “Alien: Romulus,” raking in an impressive $110 million, and Warner Bros.’ “Godzilla x Kong: The New Empire” with a staggering $132 million. This kind of revenue is usually a significant factor in a movie’s profitability.

Despite this, the earnings from Hollywood’s box office in China during the previous year were approximately 75% lower than the 2017 high, as stated by TD Cowen media analyst Doug Creutz.

Hollywood Inc.

It’s being reported that some Chinese bloggers suggest the Xi Jinping administration might impose a prohibition on Hollywood films. If this were to happen, it could potentially thrust entertainment firms into the center of the ongoing trade dispute.

In simple terms, China ranks second worldwide in movie market size and its domestic films often feature government-endorsed patriotic and culturally significant themes. This year, locally produced films have been particularly successful in China. The blockbuster “Ne Zha 2” has grossed over $2 billion, making it one of the highest-earning movies ever.

According to various experts, there are several explanations as to why China hasn’t completely shut out Hollywood, including the likes of Hancock and others.

To attract cinema-goers and shoppers to newly constructed entertainment and retail centers, the country finds it beneficial to screen popular American movies. As China aims to increase consumer spending, incorporating a bit of Hollywood content can help fill the gap in their domestic film supply, according to analysts.

World & Nation

In simpler terms, it can be said that due to its dominant position in global cinema, China wields significant influence over Hollywood, often reflecting the perspective of the Chinese Communist Party.

American entertainment firms are preparing for potential further consequences from the ongoing global trade dispute, such as potential repercussions on their goods and a potentially less vibrant advertising industry.

In his research note this week, Hancock stated that because the Asia Pacific area made up almost half of worldwide box office income in 2024, it raises significant worries for studios that depend on global success. Additionally, he suggested that growing animosity towards the U.S. due to Trump’s tariffs could further diminish Hollywood’s influence in these regions.

During the live broadcast of a cabinet meeting, it’s said that Trump appeared unimpressed by China’s action and remarked casually: “I’ve heard about even more serious issues.

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2025-04-11 00:01

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