As trade tensions rise, China’s film regulator signals a strategic pivot away from Hollywood Films, vowing to boost imports from other countries to meet domestic demand.
Beijing, April 11: In a direct response to escalating trade tensions, China has officially announced a reduction in the number of Hollywood films allowed into its theaters, a move that marks a sharp shift in its entertainment trade policy with the United States.
The China Film Administration (CFA) released a statement Thursday, criticizing the U.S. government’s recent tariff hikes as an “abuse of economic tools,” which it claimed had undermined goodwill among Chinese moviegoers toward American films. In response, CFA stated it would “moderately reduce” the number of imported U.S. films and instead focus on expanding the country’s cultural ties with non-U.S. film-producing nations.
“We will follow market rules, respect the audience’s choice, and reduce the import of American films accordingly,” the CFA said. “As the world’s second-largest film market, China remains open to high-quality cinema from around the globe.”
The move comes just a day after President Donald Trump announced a steep 125% tariff on Chinese goods, prompting an immediate retaliation from Beijing in the form of 84% tariffs on U.S. imports, including speculation around cultural exchange restrictions. This follows growing concerns that Hollywood’s influence in China may be curtailed as part of broader countermeasures.
Industry insiders in China were reportedly caught off guard. Just days earlier, Disney’s Marvel film Thunderbolts had received approval for an April 30 release. Now, its fate is uncertain. Other anticipated U.S. titles like Apple’s F1, starring Brad Pitt, also hang in the balance as local exhibitors await official confirmation from the Film Bureau.
Hollywood films have already seen waning popularity in China over recent years. However, major releases like Avatar: The Way of Water still managed to pull in over $246 million in 2022. The recent launch of The Minecraft Movie opened at $14.7 million — modest but vital for theater chains hoping to bounce back from 2024’s 23% revenue drop.
So far in 2025, China’s box office has recovered dramatically, with revenue up 42% year-over-year — although the spike is largely attributed to the unprecedented success of Ne Zha 2, which has grossed $2.1 billion since January. That domestic dominance may give authorities confidence to shift away from relying on foreign blockbusters.
While the U.S. film industry still holds a significant trade surplus in the sector, this latest development threatens one of the few areas of American cultural and commercial influence in China. Under the most recent bilateral film agreement, China had committed to importing 34 foreign films annually under revenue-sharing terms — a deal now facing disruption amid souring diplomatic ties.
If the import cut becomes permanent or extends into a broader cultural freeze, it could drastically alter Hollywood’s global revenue strategy, especially for tentpoles banking on the Chinese market. For now, all eyes are on whether upcoming U.S. titles will still make it to Chinese screens — or if a new cinematic cold war is underway.