The China Film Administration said it would "moderately reduce" the number of American films the country imports in response to Donald Trump's tariffs.

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On Tuesday, reports from China suggested that the country was mulling a ban or a reduction on the number of Hollywood films. Speculation had increased after two widely followed Chinese public figures — one an editor for a state media outlet, the other the son of a former party chief — released identical outlines on Tuesday of countermeasures Chinese authorities were said to be considering in response to Trump’s tariffs, and their outlines included a ban or reduction of imported American films.

Under the most recent trade agreements, China committed to releasing 34 foreign films per year under revenue-share terms, with overseas studios permitted to a 25 percent share of ticket sales.

The news of the reduction appeared to catch many in the Chinese film industry, particularly local exhibitors, by surprise. According to sources, China’s Film Bureau had just approved on Monday Disney and Marvel’s Thunderbolts for a theatrical release on April 30 (it’s now unclear whether that release will go forward). Exhibitors in contact with the bureau told The Hollywood Reporter that they were optimistically awaiting positive news about other upcoming U.S. releases, including Apple’s Brad Pitt starring racing movie F1.

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The popularity of Hollywood films has eroded drastically in the past several years, but top U.S. tentpoles can still occasionally bring in substantial revenue. In 2022, Avatar: The Way of Water made $246 million at the China box office. Warner Brothers and Legendary Entertainment’s A Minecraft Movie opened to $14.7 million last weekend, and local theater chains were banking on a summer slate of tentpoles like James Gunn’s Superman and Mission: Impossible – The Final Reckoning to help fill seats and keep the market recovery going.
Even with Hollywood’s diminished state in China, the film business is one sector where the U.S. maintains a sizable trade surplus with its geopolitical rival, as Chinese films, despite their enormous earnings in the home market, have made little headway with mainstream North American moviegoers.