Plus four. oh yay.

China's limit on imported films relaxed amid box office downturn
New releases increase number of Hollywood films shown in China to 38 – four more than the usual quota


Disaster movie Deepwater Horizon has secured a Chinese release on 15 November. Photograph: David Lee

Alan Evans
@itsalanevans
Tuesday 1 November 2016 05.59 EDT

China appears to have relaxed its rule limiting the number of Hollywood films that can be shown each year in a bid to boost slowing box office returns.

In the last few days, a number of Hollywood films have secured release dates, pushing the total released in China this year to at least 38, compared to the usual quota of 34. Deepwater Horizon, Keeping Up With the Joneses and Miss Peregrine’s Home for Peculiar Children have been given release dates, and films including Doctor Strange, Trolls, Allied, Moana and Sully had been confirmed.

The quota of 34 applies to films imported on a revenue-sharing basis, allowing US distributors to collect 25% of box office revenue. Other films can be imported on a flat-fee basis – in which Chinese distributors pay one fee and keep all of the profits – and account for about 30 films a year.

According to China Film Insider, a spokesperson for the Chinese film bureau denied that the quota had been exceeded, saying some of the films did not count towards the number as they were “cultural exchange projects”.

US studios are keen to capitalise on China’s enormous box office potential. A deal in 2012 increased the number of foreign imports from 20 and also improved the share of profits US studios received.

After years of growth in China, box office takings in 2016 have fallen far short of what was expected – just $5.6bn (£4.57bn) of the hoped-for $8.9bn has been made so far. This downturn is thought to have prompted the relaxation of the quota as officials attempt to reinvigorate the film industry.

The 2012 deal was valid for five years and will be up for renegotiation in February, when it appears the quota may be increased considerably. China Film Insider reported that a state official warned the domestic industry to prepare for “intensive and fair” competition, while the Hollywood Reporter suggested that the number of imports was likely to be increased by 10 to accommodate arthouse movies and Oscar winners.