Hollywood is losing its grip on Chinese audiences as they increasingly prefer domestic productions.

• Despite breaking box office records in the U.S., "Deadpool & Wolverine" did not achieve the same success in China, the second-largest film market globally.
• The decline in the appeal of American blockbusters in China can be attributed to various factors, including geopolitics, the growth of the domestic film market, and government regulations.
• According to film experts, Hollywood is shifting its focus away from catering to Chinese audiences.

Despite being the highest-grossing R-rated film globally, "Deadpool & Wolverine" has not achieved the same success among Chinese moviegoers.

"Successor" remains successful in Chinese theaters, having grossed over $439 million as of Monday, securing its position as China's third most-watched movie of the year. In contrast, "Deadpool & Wolverine" is currently at number 15.

Before 2020, a hit Hollywood franchise, particularly one under Marvel, would almost certainly rank higher in the Chinese box office. For example, Avengers: End Game was the third most popular movie in China in 2019.

This year, 'Godzilla x Kong: The New Empire' is the only Hollywood film to rank among the top 10 highest-grossing movies in China, coming in at number 8.

Since at least 2011, no Hollywood movie has made it to the top 10 according to Maoyan's records.

Made in China sells

Despite evidence of Hollywood's declining influence on China's box office prior to 2020, the global pandemic further solidified the trend, according to film experts. For the past three years, Chinese theaters have been closed, fewer films have been produced, and moviegoers have increasingly turned to streaming for entertainment.

According to Stanley Rosen, a professor of political science at the University of Southern California, Hollywood movies faced a more insular and developed home market when they returned to screens in China.

Hollywood's influence on China has been significant, with the country learning all they could from their blockbuster films. Now, China produces their own big-budget films with impressive special effects and even animated films. According to Rosen, who specializes in Chinese politics, society, and film, China no longer needs Hollywood's guidance.

Meanwhile, Chinese films like "Successor" have a major home-field advantage.

Rosen stated that the Chinese audience, primarily young individuals, seek films that connect with their experiences and reflect events occurring in China.

According to Emilie Yeh, Dean of Arts at Hong Kong's Lingnan University, the film matches that description, with themes of child-raising, education, and upward mobility, specifically tailored for the domestic market.

Chinese audiences haven't always responded positively to American studios' direct appeals.

Despite high expectations, Disney's 2020 live-action remake of "Mulan" failed to perform well in the market, with many Chinese viewers criticizing the film for historical inaccuracies and Western stereotypes of China.

'Wolf warriors' and U.S. decoupling

Nationalistic and patriotic films have gained popularity in addition to culturally relevant and relatable movies.

The highest-grossing Chinese film of all time is "The Battle at Lake Changjin," released in 2021, which portrays a conflict between the Chinese People's Volunteer Army and U.S. troops during the Korean War. This is followed by "Wolf Warrior 2," a 2017 action film featuring a patriotic Chinese hero fighting against corrupt forces abroad.

The growing patriotism has coincided with heightened Sino-U.S. tensions and the separation of the world's two largest economies.

The strained relations have contributed to Hollywood's decreasing acceptance in China, as stated by Ying Zhu, an expert in Chinese film and television and author of "Hollywood in China."

According to Zhu, the ongoing Sino-U.S. tensions are a significant factor that decreases the Chinese public's interest in U.S. popular culture, particularly films.

Hollywood storylines are becoming repetitive for Chinese audiences, who are increasingly watching non-Hollywood films.

CCP intervention

The Chinese Communist Party manages the local film market and regulates the number of foreign films shown in the country's theaters.

In 2012, Xi Jinping and Joe Biden signed an agreement that allowed Hollywood more access to China. This resulted in a 34-title quota for U.S. movies to be distributed by a Chinese state enterprise under a revenue share model. However, approved movies had to undergo China's strict censorship policies.

The Central Propaganda Department of the Chinese Communist Party was put in charge of regulating and overseeing films when Xi became president.

According to local media reports, "Successor" was produced by China Film Co., which was founded by China Film Group Corporation, linked to Beijing's propaganda department, and other entities.

Yeh from Lingnan University believes that "Successor" is a great movie with a good script, but it still greatly benefits from distribution, promotion, and state blessings.

Even in Chinese-speaking territories like Hong Kong or Singapore, the film may face challenges in gaining popularity outside of China.

Hollywood reaction

Hollywood has changed its approach to budgeting for blockbusters, as China is no longer as lucrative a market for Western films as it once was, according to Rosen.

For years, films have been criticized for catering to Chinese audiences and obtaining approval from authorities by making changes.

The U.S. maintains that Muslim minority groups have faced human rights abuses and atrocities in Xinjiang, where Disney was criticized for filming "Mulan" and thanking domestic government entities in the movie credits.

According to Rosen, the international market has become more important, as China is no longer including its elements in movies as much as before, even if they receive approval.

"If your film is intended for the international market, and it manages to gain entry into China and generate profits, that's fantastic. However, it's important to remember that success in China is not guaranteed."