China has announced plans to scale back the number of American films allowed to screen in the country - a swift retaliatory move following President Trump’s decision to impose record 125% tariffs on Chinese goods entering the US.

• The China Film Administration called out US “abuse” of tariffs and cited declining audience favourability toward American films as reason for the cut.

• Hollywood shares took an immediate hit, with Bloomberg reporting losses across Disney, Warner Bros, and Paramount.

• Blockbusters like Mission: Impossible – The Final Reckoning, Superman, Jurassic World Rebirth, and Avatar: Fire and Ash were all likely greenlit with a Chinese release in mind.

Why It Matters:

As Roger Mitchell pointed out a few weeks ago, retaliation in cultural exports was always going to be part of the playbook. Now, it’s happening.

While this specific move targets film, the implications could spill into other entertainment exports from the U.S. including sports.

The National Basketball Association (NBA), for instance, has over 44 million followers on Weibo and counts China as a major market, both for fan engagement and revenue.

Even for rightsholders with limited presence in China, the knock-on risk is real. US studios are deeply tied to major sports broadcasters who bankroll domestic leagues through media rights and commercial deals (think: ESPN - Disney and TNT - Warner Bros). If financial pressure builds on these entertainment giants, it could ripple across the entire sports ecosystem they help to sustain.