China to Likely Increase Hollywood Film Quota After Trump Deal: Researcher
China will likely increase its quota for Hollywood films as part of its trade deal with the United States, a Chinese government researcher said.
Based on an agreement set in 2012, China limits the number of film release from the US to only 34. But researcher Mei Xinyu from the Ministry of Commerce's Chinese Academy of International Trade and Economic Cooperation said that the figure will likely increase after President Donald Trump's meeting with China's President Xi Jinping in Florida last week.
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Deadline reported that the five-year arrangements are being reviewed, including negotiations on the quota set for Hollywood films in China, the percentage of theatrical rentals, and tapping into other potential markets in the country.
Mei said that concessions in films and other sectors "are relatively easy for China to make... [They] would enable Trump to claim quick achievements and in exchange China can ask for bigger market access in the US."
In 2016, China spent $6.6 billion on movie tickets, making it the second theatrical market next to North America. The figure, however, is 3 percent lower from that of in 2015, which could be attributed with China's economic slowdown and the weakening of yuan versus the US dollar.
Aside from the entertainment industry, the deal will also see China raise its imports of American soy, pork and beef, as well as life a ban on US beef imports, which has been place since 2003, Mei said. Moreover, it will also be possible for China to increase its petroleum and natural gas import from the US, partly because the upgraded Panama Canal could now accommodate larger oil tankers and cut transport costs.