Earlier this week we reported on how the fallout from the mounting tariff and trade war was likely to have an impact on US movies and their ability to gain release in China. Well, the Chinese have gone and done it, making good on their threats.
The China Film Administration will reduce the number of slots available to Hollywood films while replacing them with movies from other countries. Their statement, released yesterday and published in The Hollywood Reporter reads:
“The US government’s erroneous practice of imposing excessive tariffs on China is likely to further diminish the Chinese audience’s favourable perception of American films. We will adhere to market principles, respect audience choices and moderately reduce the import volume of American films.”
China is the second-largest cinema market in the world and looks good for ticket sales. It is less favorable for profitability as distributors take a much bigger slice of the pie in China.
The tariffs on Chinese imports could go as high as 140% this week in the wake of a series of announcements in the US. Meanwhile, tariffs on many other nations have been paused as they come to the negotiating table and before the Bond markets, who remain undefeated, started slapping people around and would have inevitably forced a climbdown anyway.
Chinese regulators just approved Marvel’s Thunderbolts for a theatrical release on April 30th, so it is currently unknown if that will make it through, or be pulled.
China remains on the White House’s naughty step at this time.