China to limit number of American films imported from US amid tariff battle

China is cracking down on U.S. films amid the escalating tariff standoff between the two nations.

China's National Film Administration announced on Thursday that it will begin reducing the number of American films allowed to be shown within China.

President Donald Trump has raised tariffs on Chinese imports to 145%, which includes the earlier fentanyl-related levies of 20%. Chinese Foreign Ministry spokesperson Lin Jian told reporters at a Thursday briefing that America was using "tariffs as a weapon to exert maximum pressure and seek selfish gains."

Officials in China said the United States' "abuse [of] tariffs on China will inevitably further reduce the domestic audience's favorability towards American films."

China Film said it will "follow market rules, respect the audience's choice, and moderately reduce the number of American films imported."

China, the world's second largest film market, has served as a crucial audience for Hollywood blockbusters, and the number of films imported to China has increased over the years.

In 2012, then-Vice President Joe Biden and then-Vice President Xi Jinping of China agreed to a deal allowing Chinese audiences access to an increased number of U.S. films. According to Variety, the agreement was not codified until 2015 when both nations agreed to raise the number of revenue-sharing films imported from 20 to 34 films per year.

During the pandemic, domestic tastes began to change in China as audiences flocked to locally made movies.

Earlier this year, the Chinese animated film "Ne Zha 2" earned more than $1.9 billion at the global box office, making it the seventh-highest grossing movie of all time, according to according to The Numbers, a film industry data website that tracks box office revenue.