China Considers Hollywood Film Ban as Retaliation Against Trump Tariffs, Sources Reveal
The American film sector has, up to this point, managed to evade direct repercussions from nations affected by President Donald Trump‘s extensive tariffs. This is largely due to theatrical film releases and streaming services being classified as services rather than tangible products. However, Hollywood’s favorable situation in China, the globe’s second-largest film market, might soon be jeopardized, as indicated by remarks made Tuesday by two prominent figures in the nation.
As trade relations between Washington and Beijing deteriorate, two prominent Chinese influencers shared an identical list of actions that local officials are reportedly considering in response to Trump’s 54 percent tariffs on all Chinese imports. The president has threatened to escalate these tariffs to 104 percent if Beijing does not retract its commitment to match the current U.S. tariff rate. Among the proposed actions are “reducing or prohibiting the import of American films,” along with raising tariffs on U.S. agricultural products and services, among other counteractions.
The potential measures were disseminated simultaneously on local social media platforms by Liu Hong, a senior editor at the state-run Xinhua News Agency, and Ren Yi, a notable and widely recognized figure who is the grandson of Ren Zhongyi, the former Communist Party chief of Guangdong Province. Both individuals credited the proposed measures to unnamed sources familiar with the authorities’ considerations. Bloomberg News was the first Western media outlet to report on their remarks.
Earnings for U.S. studios in China have plummeted significantly in recent years as local preferences have shifted from Hollywood franchise spectacles toward domestic Chinese-language blockbusters. However, a complete loss of access to the Chinese market could still negatively impact the studios’ financial results. Warner Bros. and Legendary’s A Minecraft Movie debuted in China last weekend in first place, generating ticket sales of $14.5 million, which is just over 10 percent of its total international earnings of $144 million. The largest U.S. release in the country for 2024 was Warner Bros. and Legendary’s Godzilla x Kong: The New Empire, which achieved a substantial $132 million at the Chinese box office.
Chinese authorities maintain stringent control over all aspects of film distribution within the country and have diligently worked over the years to promote local productions at the expense of foreign films. Previous trade agreements stipulated that China would release 34 foreign films annually under revenue-sharing terms, allowing overseas studios to retain a 25 percent share of ticket sales. Other films, generally lower-budget productions, are imported through a buy-out system, in which a local distributor pays a fixed fee to show the movie in Chinese cinemas. Additionally, China’s film regulators enforce strict censorship regulations concerning film content and determine the release dates for all films, reserving the most lucrative holiday periods for domestic productions.
The film industry, however, is one area where the U.S. maintains a significant trade surplus with China, as Chinese films, despite their impressive earnings in the local market, have struggled to gain traction with mainstream North American audiences.
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