The China National Film Administration just released a pretty ambitious plan. Their goal is to drastically reduce the amount of American films brought into the country. This announcement follows President Donald Trump’s recent decision to increase tariffs on Chinese goods by a staggering 125%. China’s film import strategy has shifted to one that’s more in line with respecting market rules and what audiences want. Simultaneously, it works to heavily promote Chinese-made films.
China only permits 34 foreign revenue-sharing films a year. This unconscionable quota is determined by the Motion Picture Association (MPA). In addition, the China Film Administration tightly polices the film industry. It restricts competition to a single foreign importer and a pair of domestic, state-owned distributors – China Film Group and HuaXia Film Distribution Company. The agency’s recent statement emphasizes that it will moderately cut the number of U.S. films allowed into the Chinese market.
Impact of Tariff Policies
The timing of the announcement couldn’t be more fortuitous, given the heightening US-China trade war now underway. These tensions have led to worries about their effect on cultural exchanges, especially in the realm of cinema. In its statement, the China Film Administration expressed that “the wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favorability towards American films.”
This drastic cut to U.S. film imports is part of a larger plan by China to strengthen its domestic film industry. Chinese films have been enjoying great success on their own turf among audiences. This unprecedented shift in consumer preference has the potential to radically reshape the film landscape in the region.
A Controlled Market Approach
The China Film Administration has recently restated its commitment to abiding by market rules, while at the same time protecting local content. By restricting American films, China hopes to give more room for its own filmmakers to operate. This approach further gives a leg up for domestic productions to stand out. While the agency values quantity, quality is a key factor in its film selection process. It smartly measures how well these movies have done with Chinese audiences.
The MPA has certainly noticed this change, claiming that even a slight drop in U.S. film exports could pose significant revenue losses for American studios. Whatever happens with this new wave of Chinese films, increasing demand could help make it a more even cultural playing field in the years to come.
Future Implications for Film Industry
As the China Film Administration continues to apply these changes, it is difficult to access for foreign filmmakers what this future picture will look like. A harsh quota and reduced import figures signal a time for American studios to re-evaluate their plans. They need to sell in different ways. They need to tell more compelling stories. At the same time, our local filmmakers can take advantage of this opportunity to make greater inroads into economic development potential.