China may be considering a ban on Hollywood movie releases. The second-most populous country in the world, China is a mᴀssive overseas market for the United States’ film industry. At the same time, the country’s government also censors a lot of non-Chinese films. Historically, this has sometimes caused major Hollywood studios like Disney to cater their content for the Chinese market, neglecting to include themes and characters that may be considered socially taboo. Some American films have been able to make significant parts of their profit in China.
First reported by Bloomberg, with additional details available via The Hollywood Reporter, China may be placing a ban on Hollywood movie releases. According to the report, this would be a retaliatory response to the increased tariffs imposed by U.S. President Donald Trump. Said measures would put 54% tariffs on all Chinese goods, which could increase to as much as 104%. In response, China’s plans may involve “reducing or banning the import of U.S. films” as a countermeasure. These moves were initially announced by Chinese bloggers Liu Hong and Ren Yi.
What This Means For China &The Global Box Office
This Comes After China’s Ne Zha 2 Broke Records
While the United States’ mᴀssive tariffs seem to be the primary impetus for China’s proposed ban, it comes at a flourishing time in China’s own film industry. They had a homegrown hit this year with the animated sequel Ne Zha 2, which made over $2 billion worldwide. This exorbitant total positions the movie as the no. 1 highest-grossing movie of 2025 so far and the highest-grossing animated film of all time, among other records. This was an unprecedented success for China, but it may encourage the country to invest in their own films.
Imported films are qualified as a service, rather than a good, so Chinese movies would not be directly affected by the tariffs.
That said, losing the China market could still be catastrophic for Hollywood studios. The video game adaptation film The Minecraft Movie, for example, beat Ne Zha 2 to become the no. 1 highest-grossing movie in China last weekend. And while Ne Zha 2 is almost certainly slated to be the highest-grossing movie in China for this year, the previous three years saw Hollywood films rise to the top of the pack (Godzilla x Kong: The New Empire, Fast X, and Jurᴀssic World: Dominion). So, this move could help China’s own films, but it comes at a detriment to Hollywood movies.
Our Take On China’s Proposed Hollywood Ban
This Is Particularly Bad For One Of 2025’s Most Anticipated Releases
If China’s ban on Hollywood releases goes through, it is unclear how long it will last. If the ban lasts for the duration of this year, however, it could be particularly trying news for the highly anticipated Avatar: Fire and Ash. Slated for December 19, 2025, the Avatar threequel will have the opportunity to beat out Ne Zha 2 to become the highest-grossing movie of 2025, as did its two predecessors in their release years.
China banning Hollywood films poses a significant threat to the James Cameron film, complicating its chances at making major records. Given how much Hollywood relies on the Chinese market as a whole, having that revenue disappear would be detrimental to the industry as a whole.
Source: Bloomberg and THR
