The recent trade conflict between the United States and China has escalated, leading China to consider reducing or completely banning imports of American films. This potential action comes in response to the extensive, backward-looking tariffs imposed by the US under the leadership of President Trump.
This is currently being reported by Variety and several Chinese bloggers as well as news sites, who have pointed it out as part of a broader range of countermeasures that the Chinese authorities may take. The country's Ministry of Commerce has also announced that it will take all necessary steps to protect national interests.
Hollywood, which used to see China as a key market, has already begun to view it as less critical, especially given that domestic Chinese films, such as Ne Zha 2, dominate ticket sales.
That said, there is still significant revenue coming in from the region, not to mention the recent success of A Minecraft Movie in China. So, whatever Hollywood may outwardly say, the Chinese market is far from insignificant to them.