UPDATED: The China Film Administration has confirmed that it will cut back on the import of U.S. films to the Middle Kingdom.
The move comes in the wake of the latest round in the tariff wars initiated by U.S. President Donald Trump, where he announced a 90-day pause for several countries but increased tariffs on Chinese goods to 125%.
“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 said on Thursday. “We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported.”
PREVIOUSLY: This past weekend in China, Warner Bros. and Legendary’s “A Minecraft Movie” conquered the box office and broke the hegemony of local blockbuster “Ne Zha 2” which grossed $2.11 billion after a 10-week reign. But it might be a short-lived triumph thanks to U.S. President Donald Trump’s tariffs.
U.S. tariffs on China, currently at 54%, may go up to 104% as Trump’s response to the Middle Kingdom’s counter tariffs.
Now, China is reportedly considering a slate of retaliatory measures against the U.S. that could potentially devastate Hollywood‘s access to the world’s second-largest box office, according to posts by two influential Chinese social media figures, per Bloomberg.
The potential measures, which include a possible reduction or outright ban on American film imports, were shared Tuesday on Chinese social media by Liu Hong, a senior editor at state-run Xinhuanet, and separately by “Chairman Rabbit,” the online persona of Harvard-educated Ren Yi, grandson of former Guangdong party chief Ren Zhongyi.
Liu, who serves as deputy editor-in-chief of the official Xinhua News Agency’s website, posted the information just hours after China vowed to “fight to the end” in response to President Donald Trump’s latest tariff threats.
The identical posts from both influential accounts cited unnamed sources familiar with the situation and outlined several potential retaliatory actions being considered by Chinese authorities, including: “Reducing or completely banning the import of American films.”
Chinese authorities hold absolute control over film distribution in the territory. Foreign films can formally only be distributed in China through one of two centralized state-owned enterprises, and are imported as either one of a limited quota of 34 “revenue-share” films, for which the studio gets a cut of the box office, or on “flat fee” (aka “buy-out”) terms. The China rights are licensed for a lump sum by a local firm.
China’s box office had a dull 2024 collecting just $5.8 billion but this is projected to soar 30% to $7.6 billion in 2025. With a slate of anticipated Hollywood blockbusters this year, including Tom Cruise’s “Mission: Impossible – The Final Reckoning” and “Superman,” the absence of marquee titles could dent this number.
A move against Hollywood would mark a dramatic escalation in the ongoing trade tensions between the two economic superpowers. China has become an increasingly crucial market for major studio releases, with films like “Avengers: Endgame,” “Furious 7” and “Avatar: The Way of Water” generating hundreds of millions of dollars from Chinese theaters.
However, insiders suggest the threat may be more bark than bite. Variety has learned that Marvel’s “Thunderbolts*” just yesterday secured a coveted China release date of April 30, an unusual move if a ban were truly imminent. Sources close to the situation note that the China Film Bureau has received no change in guidance or directives, so far, regarding Hollywood imports.
With the Chinese government’s close ties to both exhibitors and property developers, implementing policies that could damage theater attendance seems counterproductive to Beijing’s economic interests.
The entertainment industry continues to monitor developments closely as tensions simmer between Washington and Beijing.
