Hollywood faces defining moment in China as Disney prepares new releases

Reports of Hollywood’s demise in China have been greatly exaggerated.

Two weeks after Beijing announced plans to reduce imports of US films amid the trade war, a string of major American productions are set for nationwide releases.

Marvel’s Thunderbolts* is expected to hit Chinese cinemas in time for next week’s Labour Day holiday, with Disney’s highly anticipated live-action remake of Lilo & Stitch slated to premiere in the country soon after, on May 23.

The releases suggest that China is holding off on a potential Hollywood curb for now, as Beijing and Washington avoid any further escalation of an unprecedented trade war that has seen both sides raise tariffs on each other’s goods by more than 120 percentage points, industry insiders said.

But the US film industry still faces plenty of problems in a market where its magic has been fading for years.

Hollywood has seen its revenues in China plummet since its pre-pandemic heyday, as Chinese audiences turn away from American content in favour of domestically made films that have rapidly closed the gap in terms of production quality.