The tariffs battle raging between the US and China is now hitting Hollywood – right before the crucial summer blockbuster season. Last week the Chinese government announced that it would cut the number of American films allowed to be screened in the country – the world's second-largest movie market – according to Statista.
A statement by China's National Film Administration said the as yet unspecified decrease in the quota – which was raised to 34 foreign films a year in 2012, according to Variety – reflected audience preferences, suggesting that the Trump administration's decision to "abuse tariffs on China" had reduced its moviegoers' appetite for Hollywood releases.
China has been building up its domestic film industry, which now accounts for 80% of its box office revenue, said Reuters, and home-grown works have outshone foreign films in recent years. Most notably, "Ne Zha 2", released in January, has made $2 billion (£1.5 billion) in China alone, becoming the highest-grossing animated film in history.
Like the film industry as a whole, Chinese studios are facing competition from streaming services, as well as micro-dramas – shows made up of bite-sized episodes designed for vertical viewing on mobile phones. But while only 35% of American and European consumers say they want to watch movies at the cinema, 78% of Chinese viewers still prefer the big screen experience. So when a film like "Ne Zha 2" does well "it hits really big", said The Telegraph's film critic Tim Robey. With Hollywood executives desperate to get a piece of the action, it remains to be seen if they will be left on the outside, looking in. | 
