In reaction to recent tough tariff measures imposed by former President Donald Trump, China is contemplating a possible ban on U.S. film imports. As trade tensions between the United States and China intensify, two well-known Chinese public personalities posted identical social media proposals outlining potential remedies, such as limiting the release of American films.
Liu Hong, senior editor at the state-backed Xinhua News Agency, and Ren Yi, an influential commentator and grandson of former Guangdong Communist Party Chief Ren Zhongyi, simultaneously published identical lists online. These proposed measures reportedly originate from unnamed authorities planning China's response to U.S. tariffs, which currently impose a 54 percent levy on Chinese goods and threaten to rise to 104 percent unless Beijing agrees to concessions.
The list of potential countermeasures includes significantly limiting or entirely banning U.S. film imports and increasing tariffs on American agricultural products and services. While American films have thus far avoided being direct casualties in the global tariff war due to their classification as services, the latest developments indicate that the film industry's good fortune might soon end.
Despite their already declining profits in China, American studios would suffer a severe financial blow if U.S. films were restricted or outright banned. This change is a reflection of China's shifting consumer tastes, which have been steadily shifting toward domestically made Chinese blockbusters. For example, recent American film releases such as "A Minecraft Movie" brought in $14.5 million in China, which represents a small percentage of its global earnings. On the other hand, the 2024 release of "Godzilla x Kong: The New Empire" had remarkable success, earning $132 million in China, underscoring the potential consequences of a complete market withdrawal.
Only 34 revenue-sharing foreign films are permitted each year, which give the foreign studios about 25% of ticket sales. Local distributors can purchase other films for a flat fee, but all releases are subject to strict content censorship and government scheduling that prioritizes domestic productions during periods of high viewership for foreign films.
This suggested action is in line with China's long-standing objective of supporting domestic cinema to preserve cultural influence and safeguard local enterprises. Despite a sizable trade surplus for the U.S. in the film industry, Chinese productions have consistently failed to gain significant popularity among mainstream North American audiences.
The intensification of trade hostilities between the U.S. and China places the entertainment industry directly in the crosshairs, potentially transforming a cultural exchange platform into another contentious economic battlefield.