In response to the tariffs, China is cutting imports of Hollywood movies. But Trump is not afraid of it
11 April 09:01
China has announced an immediate restriction on imports of Hollywood films in response to another increase in customs tariffs by US President Donald Trump. This is reported by Komersant ukrainskyi with reference to Reuters.
This move is aimed at one of the most prominent American export products, but it is unlikely to hurt the United States. Industry analysts note that the financial impact of this decision is likely to be minimal, as Hollywood’s box office receipts in China have declined significantly in recent years.
After three decades of China importing 10 Hollywood films annually, Beijing’s National Film Administration said Trump’s tariff actions would further deteriorate domestic demand for American films in China.
“We will follow the rules of the market, respect the audience’s choice, and moderately reduce the number of imported American films,”
– the National Film Administration said in a statement on its website.
Hollywood studios once viewed China, the world’s second-largest film market, as an opportunity to increase the box office for their films. However, Chinese films have recently been increasingly outperforming American films at the box office. This year, for example, the animated film Neoja 2 surpassed Pixar’s Inside Out 2 to become the highest-grossing animated film of all time.
According to Chris Fenton, author of Feeding the Dragon: Inside the Trillion-Dollar Dilemma Facing Hollywood, the NBA, and American Business, the restriction of American films is
“a highly visible way to make a statement about retaliation with almost zero negative consequences for China.”
Hollywood films account for only 5% of total box office receipts in the Chinese market. At the same time, Hollywood studios receive only 25% of ticket sales in China, compared to 50% in other markets, Fenton noted.
“Such a visible punishment of Hollywood is a demonstration of strength on the part of Beijing, which will undoubtedly be noticed in Washington,”
– the expert added.
Washington noticed that Trump did not defend Hollywood’s interests:
“I think I’ve heard of worse things.”
It is worth recalling that many Hollywood celebrities supported Trump’s democratic opponent in last year’s election.
One source in the entertainment industry predicts that the big Hollywood blockbusters that continue to attract viewers in China may still make it to the big screen. Disney’s Marvel superhero film Thunderbirds, which kicks off the summer blockbuster season, recently received permission to premiere in China on April 30.
However, it remains to be seen whether China will approve the release of other major premieres this summer, such as Paramount’s Mission Impossible – The Final Reckoning, which could be Tom Cruise’s last appearance in the long-running franchise, Warner Bros.’ new Superman movie directed by Guardians of the Galaxy’s James Gunn, and Marvel’s new interpretation of the Fantastic Four.
Hollywood’s losses will be small
IMAX expects its large-screen program, which includes Hollywood, Chinese and international films, to be unaffected by the restrictions.
“We continue to expect a strong year for IMAX in China, especially after our most profitable first quarter in the country,”
– said an IMAX spokesperson.
Seth Schafer, principal analyst at S&P Global Market Intelligence Kagan, predicts that the restrictions will have little impact.
“Only about 25% of U.S. theatrical films are currently released in China, and that percentage has been steadily declining due to increasing competition from the Chinese local film industry. For the American films that do get released in China, typically less than 10% of the global box office comes from there,”
– said Schafer.
Marvel’s Captain America: Brave New World, released in February, grossed $14.4 million in China out of a total global gross of $413 million.
Previously, imported films such as Titanic and Avatar became box office hits in the Chinese market, making actors such as Leonardo DiCaprio and directors such as James Cameron popular names among Chinese moviegoers of different generations.
Since 2020, Chinese films have consistently accounted for about 80% of annual box office receipts, up from about 60% in previous years.
In the list of the highest-grossing films of all time in China, only one imported film ranks in the top 20 – “Avengers: Endgame” with a revenue of 4.25 billion yuan ($579.83 million). The rest of the films in the top 20 are exclusively Chinese productions.
