In 2020, the Chinese film market topped the global box office with $3.1 billion, 35% higher than the North American market with $2.2 billion. But this huge market has little to do with Hollywood, with American films accounting for less than 10% of the total. None of the top 10 films at the Chinese box offices were produced by Hollywood either. This is a huge blow to American producers who have been carefully managing the Chinese market for the past decade or so.
Why did Hollywood movies lose their appeal overnight? To answer this question, we have to start with the efforts made by Hollywood to penetrate the Chinese market.