- Trade tensions between the U.S. and China may hit Hollywood, as China considers banning American films in retaliation for U.S. tariffs. This could significantly impact the second-largest film market and U.S. studio revenues.
- A ban would hurt major releases like Marvel’s “Fantastic Four,” potentially leading to steep revenue losses for the Marvel Cinematic Universe which has historically performed well in China.
- While Chinese audiences favor local films, a Hollywood ban could cost studios hundreds of millions and limit global access to anticipated blockbusters.
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The trade tensions between the U.S. and China may be heading to the big screen. In response to a total 104% tariff hike from the Trump administration, China is now considering cutting American movies from its theaters.
Two state-connected bloggers in China suggested the possible Hollywood film ban as a form of retaliation. The posts, which were reported by Bloomberg, came shortly after the U.S. confirmed steep new tariffs on Chinese goods. Though films and streaming are categorized as services and not physical goods, the statements indicate China is looking for creative ways to strike back.
China’s influence on Hollywood’s bottom line
China is the second-largest film market in the world. In recent years, the country has played a key role in boosting the global box office for American studios.
A potential Hollywood film ban in China would impact major studios, especially as big releases are scheduled for the summer. Marvel’s “Fantastic Four,” for example, is expected to debut in theaters soon. Without access to Chinese audiences, the Marvel Cinematic Universe (MCU) could see a significant drop in revenue.
Marvel’s success in China
Marvel films have historically performed well in China, contributing billions to the global box office. According to IMDB:
- “Avengers: Endgame” (2019) — $629.1 million
- “Avengers: Infinity War” (2018) — $359.5 million
- “Avengers: Age of Ultron” (2015) — $240.1 million
- “Spider-Man: Far From Home” (2019) — $199 million
- “Captain America: Civil War” (2016) — $180.8 million
As of 2021, those five MCU films alone earned over $1.6 billion in China. A Hollywood film ban in China could mean a steep drop in future box office returns.
Changing audience preferences
Even before talk of a Hollywood film ban in China, the country had begun shifting away from American movies. Chinese audiences have shown a growing preference for local films that reflect their own culture and values. However, U.S. productions still dominate the global box office.
If China follows through with the ban, it could cost Hollywood hundreds of millions in revenue. It could also limit international access to some of the year’s most anticipated films.
