China is putting restrictions on Hollywood - the trade war has reached the film industry

The economic confrontation between the U.S. and China has reached a new level. Now, the dispute is affecting not only trade but also the film industry. According to Reuters, China’s National Film Administration has announced plans to limit the import of Hollywood films in response to high tariffs imposed by Donald Trump's administration on Chinese goods.

“We follow market rules, respect audience preferences, and have decided to significantly reduce the import of American films,” the official statement reads.

Hollywood’s presence in China was already declining

Reports suggest this decision stems not only from politics but also from real market dynamics. Only 5% of the total box office revenue in Chinese cinemas comes from Hollywood films. Moreover, U.S. studios receive just 25% of the box office income in China.

In recent years, Chinese audiences have shown growing interest in domestic productions. Since 2020, local films have consistently accounted for around 80% of annual box office revenue — up from about 60% previously.

Import quotas existed, and now they’re tightening

China has enforced a quota system on foreign films since 1995. Initially, only 10 foreign films could be screened per year. This number was later increased to 34. Now, the quota may be reduced again.

Trade war hits cinema

On April 10, China raised tariffs on U.S. imports from 34% to 84% — a response to the U.S. raising tariffs on Chinese goods to 104%. Donald Trump later increased tariffs to 125%, accusing Beijing of “disrespecting global markets.”

The economic conflict between the two powers is now spilling into the cinema industry. The shrinking share of Hollywood in China is driven not only by geopolitics but also by shifting audience tastes and the rise of local culture. What impact this will have on the global film market remains to be seen. Read 'Zamin' on Telegram!