China went crazy: Xi Jinping wants to ban the import of U.S. movies

The Chinese government has strict control over film distribution in its country, limiting the number of foreign films released each year and widely favoring local products.

Under previous trade agreements, China committed to allowing the screening of only 34 foreign films per year in Chinese theaters, and foreign films usually have a 25% share of box office profits.

However, China has also sought to increase local content production and limit foreign imports. This policy of protecting national cinema has been part of a broader strategy to strengthen China's cultural industries and limit the choice of other products in Chinese territory.

The consequences of a possible ban on American films in China would be significant for Hollywood studios, though not catastrophic. The American film industry has enjoyed a trade surplus with China in this sector, as Chinese films, despite their success in the local market, have not achieved significant penetration in North America.

However, the loss of access to the Chinese market would further reduce the profits of American studios, especially given that revenues in China represent an important part of the international income of many productions.

Meanwhile, China also faces the pressure of adapting to a changing global economic context. The growing competition in international markets, trade tensions with the United States, and the need to diversify its export markets are constant challenges for the Chinese economy.

 

While Hollywood films have had a prominent presence in the Chinese market, in recent years there has been a shift to local films in the country, which has gradually reduced the market share of foreign films, especially American ones.

In 2024, for example, Godzilla x Kong: The New Empire was one of the biggest box office successes of American films in China, grossing USD 132 million.

China has announced its intention to suspend the import of American films as part of a package of economic retaliations against the tariff measures of the United States under President Donald Trump's administration.

In particular, Trump had warned of a 50% tariff increase on Chinese products if Beijing did not withdraw the retaliatory tariffs it had imposed on American products, which triggered an immediate reaction from China.

Chinese authorities consider Trump's threats an act of "blackmail," and in their response, they have proposed increasing tariffs on American agricultural products, blocking the access of American poultry to the Chinese market and, as mentioned, banning the import of Hollywood films.

According to a journalist linked to the Communist Party of China, this last measure would affect the significant profits that the American film industry generates in the Chinese market, which in 2024 represented a total of USD 585 million, around 3.5% of the USD 17.71 billion of the Chinese box office.

Future releases of American films, such as Jurassic World: Rebirth, The Accountant 2, and a new installment of Mission Impossible, would lose large sums of money in the Chinese market if the ban is implemented.

China has been increasingly responding to Trump's trade policies, which seek to reduce the United States trade deficit and pressure China on issues like forced technology transfer.

The trade war initiated by China, which has already significantly increased, severely affects Chinese exporters, who have been forced to seek alternatives in other markets due to restricted access to the American market.

The increase in China's drastic measures has also had negative effects on technology companies, like Apple, which depend on production in China and primarily on the extraction of rare earth minerals.

Despite internal and external pressures, Trump has continued with his "tough negotiation" approach, carrying out a major strategy to address the large imbalances in the trade balance with third countries.

In addition to the film ban, Chinese authorities have also been considering increasing tariffs on American agricultural products, such as soybeans.