China announced on Thursday it would immediately restrict Hollywood film imports in retaliation for President Donald Trump's tariff increases on Chinese goods, targeting a high-profile American export as trade tensions intensify.
What Happened: A spokesperson for the National Film Administration said, "The wrong move by the U.S. government to abuse tariffs on China will inevitably further reduce the domestic audience's favorability towards American films. We will follow market rules, respect the audience's choice, and moderately reduce the number of American films imported."
The move could significantly impact major U.S. studios and entertainment companies with Chinese market exposure.
IMAX Corp
"IMAX is benefiting from a blockbuster-heavy 2025-2026 slate and tighter cost control, especially in China," noted Rosenblatt Securities analyst Steve Frankel, who maintains a "Buy" rating on the stock.
Why It Matters: Walt Disney Co
The restrictions follow Beijing's broader retaliation against Washington's tariff hikes, which includes increasing its levies on U.S. goods from 34% to 84% and filing a World Trade Organization complaint.
Two influential Chinese bloggers with Communist Party connections recently suggested China would "reduce or ban the import of U.S.-made films" along with restricting American companies from government procurement processes.
For U.S. studios, the $600 million earned in China last year represents a small but strategic portion of their global revenue. However, China's growing preference for domestic content had already created challenges for Hollywood before these new restrictions.
