China bites back at US tariffs by curbing Hollywood imports

China said on Thursday it would immediately restrict imports of Hollywood films in retaliation for President Donald Trump’s escalation of U.S. tariffs on imported Chinese goods.

After three decades during which China annually imported 10 Hollywood movies, its National Film Administration said Trump’s increase of tariffs on Chinese imports would further sour domestic demand for U.S. cinema in China after years of decline.

“We will follow market rules, respect the audience’s choices, and moderately reduce the number of American films imported,” the NFA said on its website.

Chris Fenton, author of “Feeding the Dragon: Inside the Trillion Dollar Dilemma Facing Hollywood, the NBA, and American Business”, said the move was a “super high-profile way to make a statement of retaliation with almost zero downside for China”.

Hollywood films account for only 5% of the overall box office receipts in China’s market. And worse for Hollywood, China taxes that small amount 50% before any revenues go back to the USA,” Fenton told Reuters.

Hollywood studios receive only 25% of China’s box office whereas other markets give studios double that, he said.

“Such a high-profile punishment of Hollywood is an all-win motion of strength by Beijing that will surely be noticed by Washington,” Fenton added.

In 1994, China began importing 10 American films each year through the internationally recognised revenue-sharing distribution model. Imports including “Titanic” and “Avatar” became box office smashes in the Chinese market, making actors such as Leonardo DiCaprio and directors such as James Cameron household names among Chinese film lovers across generations.

China is the world’s second largest film market. However, in recent years, as local entertainment culture has bloomed, the enthusiasm of Chinese audiences for Hollywood movies has waned.

Since 2020, domestic films have consistently accounted for around 80% of annual box office revenue, up from around 60% previously.

On China’s all-time box office list, only one imported film ranks in the top 20 – “Avengers: Endgame”, with revenue of 4.25 billion yuan ($579.83 million). The remaining films in the top 20 are all domestic productions.