Trump Threatens Hollywood’s Growth in China

“There is a disconnect between what Trump ... might want to do and what Hollywood wants.”

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By Anousha Sakoui

February 8, 2017 at 6:51 PM UTC

Updated on

February 8, 2017 at 7:07 PM UTC

This article is for subscribers only.

This article is part of the February 13, 2017 issue of businessweek.

During a visit to Los Angeles five years ago this month, China’s Xi Jinping gave Hollywood a much-needed shot in the arm. The incoming Chinese leader agreed to ease an almost 20-year-old quota on American films, nearly doubling both the number of U.S. movies imported to China and Hollywood studios’ share of the box office receipts—a deal that temporarily settled a World Trade Organization case the U.S. brought against China.

There was an understanding that in 2017 the two nations would return to the table to increase the compensation to U.S. moviemakers and for China to open its market further. But now President Trump’s rhetoric on China’s trade practices has some executives worried that the film industry won’t get its happy ending after all.