China 'strikes' Hollywood in response to Trump's tariffs
Illustrative photo: Beijing restricted the import of Hollywood films (Getty Images)
China, as part of its response to US President Donald Trump's tariffs, will restrict the import of Hollywood films. However, this is not expected to have significant consequences for Hollywood, states China’s National Film Administration, according to Reuters.
"We will follow market rules, respect the audience's choices, and moderately reduce the number of American films imported," stated the National Film Administration.
As expert Chris Fenton explained in a comment, Hollywood films account for only 5% of the total box office revenue in the Chinese market. At the same time, China imposes a 50% tax on this small amount before all earnings are sent back to the US.
He noted that Hollywood studios receive only 25% of the box office revenue in China, while in other markets they receive twice as much.
"Such a high-profile punishment of Hollywood is an all-win motion of strength by Beijing that will surely be noticed by Washington," he believes.
Since 1994, China has imported 10 American films annually. Notably, films like Titanic and Avatar became popular on the Chinese market. However, the popularity of Hollywood films in China is gradually declining, while domestic films are becoming more popular.
Among the highest-grossing films in China, only one imported film, Avengers: Endgame, makes it to the top 20, with earnings of 4.25 billion yuan ($579.83 million).
Trump's tariffs
US President Donald Trump imposed an additional 34% tariff on China.
Since Beijing decided to respond symmetrically, the US has raised tariffs on Chinese goods several times. As of today, the tariff on China stands at 125%.
According to US Treasury Secretary Scott Behnson, the tariffs imposed by China do not have significant consequences for America.
