China and USA Trade war is escalating fast. According to a report by Bloomberg, Donald Trump is about to introduce new tariffs which will impact $34 billion of Chinese goods. China has also threatened a tit-for-tat response. The U.S. film industry is indeed vulnerable to disturbances in U.S-China relations due to this trade war. Hollywood experts are predicting financial losses and job cuts amidst this war. Donald Trump‘s trade war can be catastrophic and destructive for Hollywood.
Beijing and U.S.A film industry are under a five-year agreement which is currently under renegotiation. Under this agreement, Beijing allowed 34 Hollywood films in China per year which is really a small number compared to the American movie industry’s output.
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Trump’s Trade war can be catastrophic for Hollywood
Movies like Jurassic World: Fallen Kingdom, have earned nearly 25 percent of its $1.069 billion in global ticket sales there. Even films that have flopped in the U.S has earned billions in China box office. For example, the movie Warcraft was a flop in the U.S which earned only $47 million but in the Chinese box office, it had earned $ 433 million.
Robert Cain is the president of co-production company Pacific Bridge Pictures which works in Chinese and U.S. entertainment producers. He told media that,
“Trump has exhibited no knowledge of or interest in what Hollywood needs, and an astonishing level of incompetence at dealmaking that has undermined what little leverage the U.S. negotiators had”.
“China is the largest foreign market available to Hollywood, and due to its size and growth, it is vitally important for sustaining U.S. film and television industry profitability and jobs”.
Furthermore, he added that it is not hard to believe that Trump has destroyed jobs in Hollywood just as he has in so many other sectors.
The trade conflict between the USA and China could be beneficial for the Bollywood industry. According to a report, in the last 3 year, the Bollywood industry has earned Rs 28.5 billion in China. Many Bollywood movies have gained huge success in China in the past. Following the US-China trade war, it is a great opportunity for the Bollywood industry to hold its firm grasp in the Chinese market.