China is curbing on the number of American movies allowed into its theaters, a move seen as a response to rising trade friction with the United States. The National Film Administration announced the decision, citing the need to better reflect local audience preferences and maintain a balanced market.

This shift comes as the US ramps up tariffs on Chinese goods, and analysts see Beijing’s move as both economic retaliation and a cultural stance. Chinese authorities have been pushing to boost the domestic film industry and reduce reliance on foreign—particularly American—productions.

In recent years, local Chinese films have dominated the box office, accounting for nearly 80% of total ticket sales since 2020. While Hollywood blockbusters like Titanic and Avengers: Endgame once topped charts, foreign films now have a much smaller footprint in China’s cinema landscape.

Chinese Officials have also previously emphasized the importance of Chinese cultural respect, encouraging foreign studios to produce content that aligns with Chinese values and sensibilities. The reduced presence of U.S. films in China’s massive entertainment market could have significant ripple effects for Hollywood studios that count on international earnings.

As China continues to promote its own film industry, this policy change marks a notable shift in the global entertainment landscape.