According to data released this week, China’s animation feature “Ne Zha 2” was a fierce success, winning 15.2 billion yuan (approximately USD 21.1 billion) at the Chinese box office in just 12 weeks.
In contrast, this year’s top-performing American film, Warner Bros.’s “A Minecraft Movie,” has just surpassed 150 million yuan, failing to infiltrate China’s top 10 films in 2025.
The sharp contrast highlights the deeper impact of Hollywood in the world’s second largest film market. Analysts say US tariffs and trade restrictions are accelerating the slide.
Creative decline
Industry data tells the story. According to figures from box office collector Maoyan obtained by Xinhua, American Movies’ annual box office share in China’s China plunged from 36% in 2018 and 30% in 2019 to just 14% in 2024.
The impact of that decline has exceeded box office revenue. “American blockbusters are no longer attracting much of the crowd,” wrote one Weibo user called “Surfaceme,” who denounced the inactive quality and decline in favor amidst tensions in tariffs and trade.
“The appeal, emotional resonance and cultural influence of Hollywood films are declining amongst Chinese audiences,” said Lao Shuguan, president of the Chinese Film Critics Association. “Creatively, Hollywood has grown conservatively and is bringing too much to the fares of Marvel and other franchises. The visual sight remains, but viewers are experiencing aesthetic fatigue.
Citizens pass a movie poster at a cinema in Beijing, China’s capital, August 22, 2024 (Xinhua/Chu Jiayin)
According to a Chinese film news report, the original Hollywood production accounted for just 18.6% of US studio releases in 2024, a dramatic decline from 40.9% in 2000. This cost-effective but creative, careful model says it undermined Chinese viewers’ expectations for high-quality film content.
Reduce favor
But Hollywood’s creative slump is just part of the picture. Industry insiders point to another power that speeds up the collapse in China. The long shadow of Washington’s aggressive tariff policy and its downstream influence on public sentiment.
The film is part of the broader US services sector where the US has traditionally maintained a significant trade surplus with China. According to the US Department of Commerce, between 2001 and 2023, US service exports rose more than eight times, with annual surplus peaking at nearly $40 billion. Films and other IP-driven content have long been an important part of its advantages.
“U.S. politicians who are stuck in the manufacturing trade deficit have overlooked the billions of politicians that America has acquired through its services,” said Min Jin Wei, a Beijing-based commentator and widely tracked blogger. He warned that arms tariffs could backfire by damaging America’s victory division.
“An unreasonable US tariffs can trigger a chain reaction because the IP-driven cultural industry is “cross-media, integrated, long-term,” says Chen Shuguan, director of the Institute of Film, Television and Theatre at Peking University. Washington’s tariff policy risks causing ripple effects, with audiences drifting away from Hollywood movies, potentially other US cultural exports tied to major IPs, he said.
Impact
Washington’s trade restrictions and tariff escalation on China is already felt in the acceptance of American cultural exports here. Franchises such as Transformers, Fast & Furious and even Marvel, once guaranteed box office juggernauts, but have performed inconsistently or completely inadequately in China.
On August 22, 2024, a poster of the Thai film “Millions of Ways Before Grandma Die” can be seen at Nanning bus stop in the Cantonese Zhuang Autonomous Region of South China.
“American films have rarely surpassed the 100 million yuan mark in China in recent years — unless it’s really special,” said Don Wenkin, a film critic and manager in Zinan, Shandong Province. “They are beaten not only by Japanese anime, but also by European art houses and Asian surprises in the region.”
My preferences are changing. Japanese animation continues to attract a stable crowd, while European and Southeast Asian films have achieved status. This year’s surprise hits, Italy’s Still Tomorrow and England’s National Theatre Live: Prima Feely, exceeded expectations. Last year, Thailand’s “How to Make Millions of Ways Before Grandma Dies” became a breakout sleeper.
Dong said the Chinese film market is likely to be even more closely linked across the US to meet the needs of an increasingly diverse audience. And Beijing is already moving in that direction.
The recent film agreement with Spain calls for deeper collaborations on co-production, film festivals and mutual screening, indicating China is expanding its cultural partnership.
The irony is harsh. Washington’s trade restrictions and tariff movements designed to protect American industry could cripple one of the country’s most influential exports.
“U.S. tariffs tax not just taxes, but tax appeals,” Ming said. “And in today’s global entertainment economy, if its appeal fades, even the strongest cultural influences may have to struggle to endure.”
Reissue: Xinhua