Hollywood Braces for Collateral Damage From Trade War With China

This was supposed to be a big year for Hollywood in China. The five-year World Trade Organization film pact the U.S. and Beijing signed in 2012 was set to be renegotiated, holding out the promise that American studio productions would gain greater access to the world’s second-largest movie market. The industry had expected to see an increase in the number of U.S. films allowed, more access to key viewing windows such as summer, when China’s film authorities rarely allow foreign movies, and a higher share of box-office receipts.

Now it’s looking like Hollywood’s long-awaited payday in China could become collateral damage in the trade war brought on by President Trump’s tariffs. Not only have negotiations about widening access to the market stalled, but some in Hollywood also quietly worry that their films could be targeted in retaliation for tariffs the U.S. has identified for about $250 billion in imports from China. “The timing for this is inopportune,” says Chris Fenton, a trustee of the U.S.-Asia Institute and former president for U.S.-China film company DMG Entertainment. “In fact, the macro environment may be getting worse. It also could lead to the worst-case possibility of China backtracking on past agreements.”