China Mulling Ban on Hollywood Film Releases in Response to Trump Tariffs (Report)

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So far, the U.S. film industry has avoided direct retribution from countries affected by President Donald Trump’s worldwide tariffs, due to the fact that theatrical releases and streaming platforms are considered services instead of physical goods. However, Hollywood‘s favorable position in China, the world’s second-largest film market, may not last much longer, as indicated by remarks made on Tuesday by two prominent figures within the Chinese public sphere.

In light of the deteriorating trade relationship between Washington and Beijing, two popular Chinese bloggers have published a similar list of potential responses from local authorities to President Trump’s proposed 54% tariffs on all Chinese goods, with a threat to raise this to 104% if China doesn’t withdraw its promise to match the current U.S. tariff level. The suggested actions include limiting or prohibiting the import of American films, as well as increasing tariffs on American agricultural products and services, along with other counteractions.

Liu Hong, a senior editor at the state-supported Xinhua News Agency, and Ren Yi, a prominent figure on social media who is the grandson of a former communist party chief of Guangdong Province, both published potential plans on local social media simultaneously. Neither named their sources, but claimed they were familiar with the authorities’ planning. Bloomberg News was among the first Western news outlets to report on these statements.

In recent years, the earnings of American film studios in China have significantly dropped due to a change in local preferences from Hollywood blockbusters towards Chinese-made films. However, completely cutting off access to the Chinese market could still affect their profits. For instance, Warner Bros.’ and Legendary’s “A Minecraft Movie” debuted in China at number one last weekend, earning $14.5 million, which represented only about 10% of its total international earnings of $144 million. In contrast, the highest-grossing U.S. release in China back in 2024 was Warner Bros.’ and Legendary’s “Godzilla x Kong: The New Empire,” raking in a massive $132 million at the Chinese box office.

In China, the government has a strong control over all aspects of movie distribution within the country, focusing on increasing domestic productions while limiting foreign ones. Previously, under trade agreements, China pledged to release 34 foreign movies annually using revenue-sharing arrangements, allowing overseas studios to earn up to 25% from ticket sales. Smaller budget films are typically imported through a buyout system, where a local distributor purchases the rights to show the movie in Chinese cinemas for a flat fee. The Chinese film regulators closely monitor content for censorship and decide the release dates for all movies, prioritizing prime holiday seasons for domestic Chinese productions.

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2025-04-08 15:24