Amid the escalating trade war between the United States and China, triggered by President Trump’s tariffs, China is expanding its response beyond just tangible goods.
On Thursday, China announced that it is targeting the U.S. film industry by restricting American films’ access to its movie market, the second-largest in the world.
According to the National Film Administration (NFA), China will “follow market rules, respect the audience’s choices, and moderately reduce the number of American films imported.” Earlier in the week, two prominent Chinese bloggers, connected to the communist government’s official media, suggested that a full ban on American films was being considered. However, experts indicated that the NFA’s more measured approach would likely have limited financial impact on Hollywood. Nonetheless, the move signals China’s readiness to use its cultural sector as leverage against Trump. As tensions rise, this could be a precursor to a total ban on U.S. films in China.
China’s box office has grown rapidly, with American films playing a significant role.
In 2023, the U.S. market brought in $9.1 billion, 27% of the global box office, while China earned $7.7 billion, or 23%. For years, China’s film industry was relatively small, but it saw explosive growth, reaching over $9 billion in 2019. Hollywood films, including Avengers: Endgame, which grossed $632 million in China, contributed heavily to this growth. Last year, five U.S. films earned at least $50 million in China, with Godzilla x Kong: The New Empire making $132 million.
While a potential ban on American films wouldn’t be disastrous for U.S. studios, it would certainly harm an industry still recovering from the pandemic’s financial impact. Chris Fenton, author of a book on Hollywood’s relationship with China, described the move as a “punishment” that Washington would notice. Given that Chinese films earn almost nothing in the U.S., the U.S. is in no position to retaliate.
