In February 2017, the United States and China began renegotiating the five-year film pact that had limited the annual number of foreign film exports to China to 34 and the share of revenue payable to foreign-rights holders to 25 percent of gross box office. Hollywood wanted an increase in revenue-sharing films, a higher share of box-office receipts, and more access to key viewing windows in China’s ever-expanding film market. In January 2018, Beijing agreed to discuss “policies and practices that may impede the U.S. film industry’s access to China’s market,” and in April Chinese negotiators reportedly offered to raise annual quotas. But then the talks stalled amidst the contentious U.S.-China trade negotiations. And now, the same trade dynamics affecting products as diverse as soybeans and auto parts have hit Hollywood.
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