After three decades during which China annually imported 10 Hollywood films, its National Film Administration (NFA) said that the increase in Trump tariffs on Chinese imports will further reduce the domestic demand for American film in China after declining years.
“We will follow the market rules, we will respect the public’s elections and moderately reduce the number of imported American films,” the NFA said on its website.
Chris Fenton, author of “Feeding the Dragon: Inside The Trillion Dollar Dilemma Facing Hollywood, The NBA, and American Business,” said the measure is a “very noticeable way to make a declaration of retaliation with almost zero disadvantages for China.”
Hollywood films only represent 5% of the total chinese market box office. And what is worse for Hollywood, China gravels that small amount with 50% taxes before income returns to the United States, “Fenton told Reuters.
Hollywood studies receive only 25% of the Chinese box office, while other markets give the double studies, he said.
In 1994, China began to import 10 American films a year through the shared income distribution model, internationally recognized. Imports such as “Titanic” and “Avatar” became box office successes in the Chinese market, causing actors such as Leonardo DiCaprio and directors such as James Cameron to become known names among Chinese cinephiles of all generations.
China is the second film market in the world. However, in recent years, as the local entertainment culture has flourished, the enthusiasm of the Chinese public for Hollywood films has decreased. Since 2020, national films have systematically represented about 80% of the annual box office income, compared to the previous 60%.
