Beijing bites back at US tariffs by curbing Hollywood imports

BEIJING - China said on April 10 it would immediately restrict imports of Hollywood films in retaliation for US President Donald Trump’s escalation of US tariffs on imported Chinese goods.

Its National Film Administration said Mr Trump’s increase of tariffs on Chinese imports would further sour domestic demand for US cinema in China after years of decline. In the last three decades, China imported 10 Hollywood movies annually.

Mr 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 per cent of the overall box-office receipts in China’s market. And worse for Hollywood, China taxes that small amount 50 per cent before any revenues go back to the USA,” Mr Fenton told Reuters.

Hollywood studios receive only 25 per cent 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,” Mr 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 per cent of annual box-office revenue, up from around 60 per cent previously.

On China’s all-time box office list, only one