INSUBCONTINENT EXCLUSIVE:
Editors note: Min Rui is a reporter from the Culture Programming Department of CGTN
The following commentary reflects her own views
If you are interested in communicating with her, please send out an e-mail to min.rui@cgtn.com.Chinas moderate cut in United States film
imports sent American movie stocks into a tailspin, exposing deep-seated traffic jams in Hollywoods cultural export capabilities.Chinas
National Film Administration announced it would reasonably trim US movie imports, a move sparking worldwide attention and debate
Far from a restrictive measure, this decision shows market characteristics and reasonable adjustment.US films as soon as held sway over
In 1994, China for the very first time permitted the import of revenue-sharing movies, under which profits were divided in between Chinese
suppliers and foreign studios
In 1998, Titanic smashed box-office records, generating 360 million yuan ($49 million), accounting for a 3rd of Chinas overall film
It developed into a cultural feeling, declaring the growing influence of US movies in China.After China joined the WTO in 2001, United
States films experienced a period of exponential development, stimulated by prolonged market gain access to
The quota for revenue-sharing movie imports increased to 34 films annually, and the profit-sharing ratio surged to 25 percent, permitting
Hollywood to generate substantial revenues in the Chinese market.However, as the Chinese movie industry advanced, domestic hit series such
as The Wandering Earth, Wolf Warrior, and Ne Zha gradually broadened their market share by virtue of localized themes and Chinese film
industrial advancements.In the previous decade, Chinese audiences have actually ended up being more critical, with their tastes constantly
In 2019, Chinas domestic movies claimed 64 percent of the nations box-office revenue, going beyond US films and putting an end to the
latters enduring dominance.For Chinese spectators, its not a disinterest in United States films; rather, lots of Hollywood offerings have
merely end up being creatively stagnant
In 2024, a slew of Hollywood hits flopped in the Chinese market
On Douban, a leading Chinese film-rating platform, the average score of US films dropped listed below 6, revealing a 1.2-point year-on-year
decline.This year, films like Snow White and Captain America: Brave New World, which depend on pre-existing franchises and used
absolutely nothing new in terms of imagination, stopped working to strike a chord with Chinese audiences
In spite of delighting in import policies, these films not only failed to generate profits but also stopped working to win the favor of
It would be much better, indeed, if they were kept out of the market.Despite these battles, China stays an important abroad market for
As the National Film Administration stated, China is the worlds second-largest movie market
We remain committed to top-level opening-up, importing outstanding movies from more nations to fulfill market needs
Chinese audiences have actually not lost their love for cinema -- they have simply become more selective about movies
One effective example is the 2024 thriller Alien: Romulus, which made 786 million yuan in the Chinese mainland, surpassing its North
American income and becoming the movies biggest market
Lets do the mathematics here: a tax raise is likely to slash the profit-sharing ratio for revenue-sharing movies from 25 percent to around 8
percent, considerably impacting Hollywood studios profits
This means that only top quality, well-produced United States movies can profit in China
The moderate reduction is not arbitrary, however can be seen as a quality screening process.On April 10, following the import decrease
statement, shares of major United States film companies dropped: Disney and Warner Bros
Discovery saw same-day declines of 6.79 percent and 12.53 percent, respectively
This shows investor anxiousness about Hollywoods future and exposes underlying cultural and economic obstacles -- including its
over-reliance on the Chinese market, which represents 18 percent of income, far surpassing other abroad markets
From now on, Hollywood will be dealing with traffic jams in its culture export model.Meanwhile, eyes are on the European front where new
opportunities are emerging and stand to acquire from this shift
With growing viewership and more co-production projects in China, European films might have the ability to heighten their circulation
efforts in China to fill deep space left by the decrease of United States imports.Taking the lead is Spain, as the countrys Prime Minister
Pedro Sanchez signed a memorandum of understanding on April 11 to upgrade exchanges and partnership with China in the film sector.Observers
believe Chinas new policy is far more than a simple countermeasure in Sino-US trade dynamics; it has the potential to improve the global
This does not signify Chinas withdrawal from global cultural exchange
On the contrary, China wholeheartedly invites high-quality foreign films, actively motivates worldwide cultural interaction, and is
committed to promoting a truly pluralistic cinematic landscape for the world to appreciate.Related: Why Chinese viewers are disliking the
