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In a swift retaliatory move, China on Thursday announced it would immediately restrict the importation of Hollywood films following U.S. President Donald Trump’s escalation of tariffs on Chinese goods. Meanwhile, the European Union is opting for a diplomatic pause, holding back on its planned countermeasures.
European Commission President Ursula von der Leyen stated: “We want to give negotiations a chance.”
For over thirty years, China has annually permitted the import of 10 Hollywood blockbusters. However, the country’s National Film Administration (NFA) revealed that the recent tariff hikes have only deepened waning interest in American cinema across Chinese audiences.
“We will follow market rules, respect the audience’s choices, and moderately reduce the number of American films imported,” the NFA stated via its official website.
Industry analyst and author of Feeding the Dragon: Inside the Trillion Dollar Dilemma Facing Hollywood, the NBA, and American Business, Chris Fenton, described the restriction as a highly strategic move: “A super high-profile way to make a statement of retaliation with almost zero downside for China.”
He noted the limited financial impact such a ban would have, explaining: “Hollywood films account for only 5 percent of the overall box office receipts in China’s market. And worse for Hollywood, China taxes that small amount 50 percent before any revenues go back to the USA.”
Fenton further pointed out the unfavourable economics for U.S. studios: “Hollywood studios receive only 25 percent of China’s box office whereas other markets give studios double that,” he told Reuters.
With Hollywood caught in the crossfire and Europe urging restraint, the global impact of the ongoing U.S.-China trade war continues to reverberate across sectors—cinema included.
