China's National Film Administration (NFA) on Thursday  (April 10) announced to "immediately" restrict imports of Hollywood films in retaliation for US President Donald Trump's raging tariff war against China. 

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China has been importing 10 Hollywood movies annually for the last three decades, Reuters reported. 

"We will follow market rules, respect the audience's choices, and moderately reduce the number of American films imported," the NFA said on its website.

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The NFA said that Trump's tariffs would sour domestic demand for American cinema. 

This came after Trump increased the tariffs on China to 125%, after Beijing did not roll down the escalating tariffs on the US. 

However, China retaliated, saying that it won't sit back and that the threats and coercion are not the right way to deal with China.

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Also read: China and EU explore closer trade ties amid US tariff pressure

Chris Fenton, author of "Feeding the Dragon: Inside the Trillion Dollar Dilemma Facing Hollywood, the NBA, and American Business", said the move was a “super high-profile way to make a statement of retaliation with almost zero downside for China.”

According to Variety, domestic films have outperformed Hollywood’s fare in China, with "Ne Zha 2" this year eclipsing Pixar's "Inside Out 2" to become the highest-grossing animated film of all time. 

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However, now US films account for only five per cent of the overall box office receipts in China's market. 

Early in 1994, China began importing 10 American films each year, which included "Titanic" and "Avatar". These two movies became box office smashes in the Chinese market, making Leonardo DiCaprio and director James Cameron household names among Chinese film lovers. 

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(With inputs from agencies)