Of course, since China promised to “fight to the end” in this trade war, that all-caps warning went unheeded, and the country initiated its own 84% tariff on U.S. goods. And, also as promised, that’s going to have an effect on Hollywood. “The wrong action of the U.S. government to abuse tariffs on China will inevitably further reduce the domestic audience’s favorability towards American films,” the China Film Administration (CFA) said in a statement on Thursday (via The Hollywood Reporter). “We will follow market rules, respect the audience’s choice, and moderately reduce the number of American films imported. China is the world’s second-largest film market. We have always adhered to a high level of opening up to the outside world and will introduce more excellent films from the world to meet market demand.”
China represents a not-insignificant international market for Hollywood, though in recent years the country has been investing in its own film industry over foreign markets. Under previous trade agreements, the country committed to “releasing 34 foreign films per year under revenue-share terms, with overseas studios permitted to a 25 percent share of ticket sales,” per THR. The outlets report that exhibitors were caught by surprise about the reduction news, especially after Disney’s Thunderbolts was recently approved for release. These sources apparently remain optimistic about showing that and other upcoming American films like F1. Meanwhile, the Chinese film market got a shot in the arm thanks to the success of animated sequel Ne Zha 2, which is currently the highest-grossing film of 2025, the fifth-highest-grossing film of all time, the highest-grossing non-English language film of all time, and the highest-grossing animated film of all time. Who needs Hollywood?
