China is contemplating a significant shift in its film import policy, primarily targeting American movies, as a countermeasure to recent tariff impositions by the U.S. government. This possible decision is on the table against a backdrop of worsening relations between the US and China, especially over fentanyl-related cooperation.
To further complicate things, the Chinese government announced last month that it was contemplating suspending its cooperation with the U.S. on fentanyl-related issues. On top of this, they intend to clamp down on the number of American films allowed to enter their market. China is getting ready to roll out stronger rules. Most crucially, they’re pushing back against what they view as the U.S. misusing tariffs, which they argue have hurt their own economy.
This is a significant decision which will have long-term ramifications over how the domestic audiences view American films. China now has the second largest film market in the world. If American film imports are reduced, audience tastes may change drastically. Chinese audiences are increasingly losing their taste for Hollywood blockbusters.
Though the biggest U.S. blockbusters still make a lot of money, the trend clearly shows a cooling enthusiasm for these movies. For instance, “Avatar: The Way of Water” accrued $246 million at the Chinese box office in 2022, showcasing that while significant films can still perform well, the landscape is changing.
And over the past weekend, the #1 new release – the Minecraft Movie – opened to a very respectable $14.7 million – in China. This encouraging performance further confirms that films made both locally and abroad outside of standard Hollywood fare are striking a chord with Chinese audiences.
China is likely to heighten restrictions on the volume and types of films it imports. They might even start raising tariffs on American ag exports. Collectively, these actions are part of an all-out strategy to fight back President Donald Trump’s tariff threats.
And in November, a spokesperson from the newly-created China Film Administration (CFA) downplayed such policies, emphasizing their allegiance to “market dynamics.” They agreed to abide by market principles and listen to consumer preferences. Plus, they aim to slightly decrease the amount of American movies they bring in. The CFA’s initial mandate was to have an open mind toward foreign films. And they do it to attract more high-dollar productions, in order to meet the market demand.
It seems like China’s film importation isn’t entirely a walled-off garden for American productions to scale the walls. We’ve recently turned our attention to promoting moderation. This Amendment brings us to a better, more balanced place that prioritizes domestic preferences but recognizes the importance of international collaboration.