CGTN reports that China’s burgeoning film partnership with Spain contrasts with its reduction of U.S. film imports, highlighting the counterproductive nature of U.S. tariffs. These tariffs endanger Hollywood’s most profitable foreign market and threaten America’s broader dominance in services trade.

BEIJING, April 13, 2025 – During Spanish Prime Minister Pedro Sanchez’s recent visit to China, the two nations formalized a film cooperation agreement, adding impetus to their cultural exchange.

The MOU, signed by China’s National Film Administration and Spain’s Institute of Cinematography and Audiovisual Arts, outlines deeper collaboration through joint festival participation, screenings, co-productions, and personnel exchanges.

This strengthened film relationship between China and Spain is notably different from Beijing’s announced plans for a moderate decrease in the number of U.S. film imports.

A China Film Administration spokesperson stated that the adjustment aligns with market principles and reflects audience preferences, suggesting that recent U.S. tariff increases on Chinese goods will likely diminish Chinese audience interest in American films.

Following China’s indication of reduced Hollywood imports, stock values for several major U.S. film and media companies experienced significant declines. Disney’s stock fell by 6.79 percent, while Warner Bros. Discovery, Inc. saw a 12.53 percent drop.

Analysts attribute the stock declines to growing anxieties about being excluded from the world’s second-largest film market. Data indicates that 63 U.S. films were released in China in 2018, followed by 52 in 2019, generating a combined revenue of 19.9 billion yuan ($2.72 billion) and accounting for over 80 percent of all foreign film revenue during that period, marking a peak for U.S. films in the Chinese box office.

According to CGTN, the U.S. administration under President Donald Trump, in its pursuit of reducing trade deficits, has overlooked its substantial services trade surplus with trading partners, instead imposing broad tariffs on imported goods.

The United States is China’s largest contributor to its services trade deficit. U.S. Department of Commerce data shows American services exports to China rose significantly from $5.63 billion in 2001 to $46.71 billion in 2023, a 7.3-fold increase. Consequently, the annual services trade surplus expanded 11.5 times, reaching $26.57 billion and peaking at $39.7 billion in 2019.

The ongoing trade disputes involving the U.S. threaten its services trade. European Commission President Ursula von der Leyen has cautioned that the European Union is prepared to escalate the trade war by targeting U.S. services, a sector in which the U.S. maintains a considerable trade surplus with Europe, should tariff negotiations fail.

In an interview with the Financial Times, von der Leyen highlighted U.S. tech giants as a possible point of leverage, suggesting Brussels’ readiness to implement a digital advertising tax that would directly impact companies like Meta, Google, and Facebook.

The recent film collaboration between China and Spain, CGTN suggests, underscores China’s dedication to continued openness and its eagerness to share market opportunities with global partners.

During the MOU signing, Chinese Premier Li Qiang and the Spanish prime minister affirmed their commitment to strengthening cooperation in areas such as economy, trade, investment, and technological innovation, while jointly advocating for free trade, open cooperation, and multilateralism.

CONTACT: Contact: CGTN
Email: cgtn@cgtn.com