One would think that the ongoing trade war between the US and China would revolve strictly around tariffs, but surprisingly, it could also affect the US film industry.
With China firing back with a 125% tariff after the Trump administration said it would impose 145% tariffs on the country, it is clear that both countries won’t back down and no one knows how far it will go.
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China is not staying silent
Foreign Affairs spokesman Lin Jian made it clear that China would retaliate to the US tariffs, saying: “Pressure and threats are not the way to deal with China. China will firmly safeguard its legitimate rights and interests.”
China is considering banning movies
China is contemplating banning or restricting the number of American movies shown in their country. Two influential Chinese bloggers with connections to local authorities shared a list that may be introduced to Chinese authorities as ways to retaliate.
What this means for the US
International markets have a great impact on movies, and China banning American movies can be a massive blow for US movie studios.
This is due to the fact that film production costs have skyrocketed and they need to cover these expenses.
How China is impacting the US movie industry
Chim-na is one of the biggest markets of the world as its population exceeds one billion people. So, when they consume American movies, they help the production companies make their money back and profit.
This is especially true for Blockbusters and movie franchises
People do realize that if China goes on with banning US movies, it would be a massive blow to the US, with one X (formerly Twitter) user saying:
“The Chinese box office is the world’s second-largest. For studios like Disney, Universal, and Warner Bros, that market is gold.”
People are anxious about this move
“Hey so this would be financially catastrophic for the film industry,” another user said.
A third added: “Big move if true. This could seriously impact Hollywood’s box office revenue, especially with how much studios rely on the Chinese market.”
