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China’s Next Move Amid Tariff War With the U.S.: Cutting Hollywood Film Releases

  • The Asian country has decided to reduce the number of U.S. film releases in response to Trump’s new tariffs.

  • Local film productions in China have gained momentum over the past few years.

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javier-marquez

Javier Márquez

Writer
  • Adapted by:

  • Alba Mora

javier-marquez

Javier Márquez

Writer

I've been in media for over a decade, but I've been marveling at the possibilities that technology brings us much longer. I believe we live in a world where the digital revolution is changing everything and that Xataka is the best place to write about it.

165 publications by Javier Márquez
alba-mora

Alba Mora

Writer

An established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.

411 publications by Alba Mora

“China also wants to make a deal, badly, but they don’t know how to get it started,” President Donald Trump shared on social media shortly after announcing the temporary suspension of “reciprocal” tariffs. However, he also intensified his stance with Beijing by raising tariffs on Chinese imports to 145%. A 125% increase was initially reported, but the White House later clarified that this amount was in addition to the existing 20% tariff.

As trade tensions escalate, China is showing no signs of backing down, contrary to what Trump may hope. Beijing has adopted a firmer tone and clearly stated its position. “If the U.S. insists on its own way, China will fight to the end,” China’s commerce ministry said in a statement. Additionally, the Asian nation announced a retaliatory measure targeting the U.S. film industry.

Local films over Hollywood. According to the Global Times, China’s National Film Administration will reduce the number of U.S. film imports. The Chinese agency claims that the measure is a response to the “law of the market” and the “choice of the audience.” However, it suggests political undertones by adding that Trump’s tariffs will ultimately harm the Chinese public’s perception of American films. Moving forward, the number of U.S. releases in Chinese theaters will be limited.

Not a new trend. The recent decision takes place in a context where Hollywood’s influence has started to diminish. According to box office data from April, only two of the 10 U.S. films released so far in 2025 (Captain America: Brave New World and A Minecraft Movie) have surpassed $13.6 million in China. The other films have made little impact.

Chinese Cinema

This move is part of a broader transformation. For many years, Hollywood productions were widely accepted in China, but that situation has changed. Data from state-owned Xinhua News Agency shows that in 2012, seven of the 10 highest-grossing films in China were American. However, Hollywood movies currently struggle to appear among the most-watched films.

China has adopted a common strategy: learning from the global industry and creating similar content with its unique identity. Over the past decade, it’s developed a domestic film industry capable of producing popular blockbusters. Recent examples, such as Wolf Warrior, Hi, Mom, Ne Zha 2, and The Wandering Earth II, illustrate this shift. In fact, Ne Zha 2 and The Wandering Eart II are currently leading the domestic box office.

Trade war continues. Following Trump’s tariff hike to 145% on Chinese imports, it remains to be seen how Beijing will respond. So far, China’s reaction has been a moderate adjustment in the cultural sector, but it may choose to implement more drastic measures in the future. Chinese tariffs on U.S. products currently stand at 84%.

Images | Venti Views | Zhe ZHANG

Related | Luxury Brands Hoped to Expand in the U.S. Following a Decline in China. Tariffs Had Other Ideas

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