Overview

• China may limit or ban Hollywood films in response to U.S. tariffs, which currently stand at 54% and could increase to 104%.
• The potential countermeasures were shared by influential Chinese figures Liu Hong and Ren Yi, citing unnamed sources familiar with the planning.
• Hollywood's reliance on China's regulated film market, which operates under strict quotas and censorship, leaves it vulnerable to such actions.
• U.S. studios have already faced declining earnings in China due to shifting local tastes favoring domestic blockbusters over Hollywood films.
• China's potential retaliation could also extend to other sectors, including increased tariffs on American agricultural goods and services.