Thinking Out Loud | Hollywood and Chinese audiences are each forging their own paths

Why has AI · Oscar lost its former popularity in China?

Dislocation and Limitations of Global Attention

The 98th Academy Awards have concluded, and for Chinese audiences, the response was unsurprising—calm and uneventful.

“One Second” won six awards, including Best Picture, Best Director, Best Supporting Actor, and Best Adapted Screenplay, making it the biggest winner of the night; “Hamnet” helped Jesse Buckley secure Best Actress, while Michael B. Jordan from “The Guilty” took Best Actor; and “The Marvels” with nine nominations, made its lead actor, Trevante Rhodes, a trending topic online.

The Oscars remain a top-tier award in the film industry and now also serve as a yearly entertainment event worldwide.

Controversies and unexpected incidents have become more memorable than the films themselves. After all, recent winners like “Oppenheimer” are widely recognized, but the “incidents” at the Oscars—such as John Cena’s nearly nude appearance, the snubs of Michelle Yeoh by Robert Downey Jr. and Emma Stone, or Will Smith slapping the host—are more talked about.

On March 27, 2022, at the 94th Academy Awards, Will Smith slapped host Chris Rock.

Identity politics, conflicts, PR manipulations, and awards for non-American films have all added topics to the Oscars, but none have reversed the declining attention the event receives.

In mainland China, discussions about this year’s Oscars focus on the male lead of “The Guilty” wearing a new Chinese-style suit during the award ceremony, and issues related to female cinematography. Chinese netizens are no longer interested in the films themselves but in the fragments of the ceremony that relate to them.

As for domestic Chinese films, the narrative related to movies has long shifted away from the glory of foreign films. Who remembers that years ago, “Oscar push” was a key goal for overseas expansion by some film companies and co-productions? Over two decades, the domestic film market has reversed Hollywood’s dominance, with Eastern box office gradually disillusioning Western industry. While nominations and awards at the Oscars still honor filmmakers worldwide, in China, the event is increasingly a niche viewing experience.

However, domestic films are not always thriving. Similar to China’s cold reception at the Oscars, the country’s film industry also faces a long road to global recognition.

American political scientist Samuel Huntington proposed in “The Clash of Civilizations and the Remaking of World Order” that after the Cold War, the core of global conflicts shifted from ideology or economic systems to structural frictions between different civilizations. From this perspective, Hollywood’s cold shoulder in China and Chinese films’ overseas journey are manifestations of this “clash of civilizations.”

Narratives Dominating the Cultural Industry

For a century, Hollywood films have operated within an almost unreplicable system: a mature genre production mechanism, massive capital investment, advanced industrial technology, and a global distribution network—all seamlessly flowing worldwide.

Universal stories are the cornerstone of Hollywood’s global appeal.

American scholar Joseph Nye, in his “Soft Power” theory, states that the widespread dissemination of American culture is due to its narratives and values being highly universal and portable—themes like individualism, heroism, family bonds can transcend cultural boundaries and be understood and accepted by audiences in different countries.

These core themes are driven by the cultural structure of the U.S. itself. As a typical immigrant nation, American society has long been multicultural and multiethnic. Cultural products born here are designed from the outset to appeal to diverse audiences. This cultural adaptability gives Hollywood films a natural advantage in global markets.

In Southeast Asia, according to the annual “Theme Report” by the U.S. Motion Picture Association, Hollywood’s market share consistently ranges from 50% to 80%. This is because countries like Singapore, Malaysia, Thailand, and the Philippines have long been influenced by American culture through history, education, and media, leading to high acceptance of American products. Meanwhile, their relatively limited local film industries provide more room for Hollywood’s growth.

Similar patterns are seen in Europe. Despite Europe’s rich film tradition, with France maintaining a high proportion of domestic films through strict cultural protection policies, most European countries’ commercial cinemas are still dominated by American blockbusters.

If storytelling ability is the source of Hollywood’s strength, then its industrial system—capital, technology, and institutional support—is the bedrock that channels these stories worldwide.

Major Hollywood studios like Disney, Universal, Warner Bros., Paramount, and Sony have branches in key markets, coordinating release schedules, regional marketing, and theater partnerships to promote films simultaneously across the globe. This system is especially evident in the release of blockbuster films.

For example, “Avengers: Endgame” (2019) was released simultaneously in over 50 countries across the Americas, Europe, Asia, Latin America, and the Middle East, leveraging unified marketing and social media to generate a market explosion, earning $1.2 billion in its opening weekend. Similarly, “Avatar” and its sequels, through long-term releases and technological advantages, have repeatedly re-screened in multiple markets, expanding their commercial influence.

“Avengers: Endgame” (2019)

This global distribution network enables Hollywood films to become “event-level” cultural phenomena in different regions, continuously reinforcing their market dominance.

Beyond cultural and industrial factors, the expansion of American cinema also relates closely to geopolitical strategies. During the Cold War, the U.S. government regarded cultural products as vital soft power tools, spreading American lifestyles through movies, TV, and music. In the 21st century, this influence persists in new markets.

A notable example is Saudi Arabia’s film market opening. In 2016, the Saudi government announced the Saudi Vision 2030, aiming to diversify the economy through entertainment development. In 2018, cinemas, banned for 35 years, were officially reopened. Due to the long absence of a local film industry, the market was nearly empty, and with 70% of the population under 35, many went to cinemas in the UAE and Bahrain, where Hollywood films dominated. During those years, Hollywood had already built a potential audience base in Saudi Arabia via TV and the internet.

In this context, U.S. theater chains quickly entered the market. In 2018, AMC Entertainment partnered with the Saudi Public Investment Fund to establish theater chains and planned to open hundreds of cinemas. Hollywood films became the main content in these new theaters, quickly gaining market share.

From Southeast Asia to Europe and the Middle East, Hollywood’s success is no accident.

Its cultural narrative adaptability, mature industrial system, and global distribution network form the core competitiveness of the American film industry. In the global cultural market, Hollywood is not just a film production system but also a worldwide cultural infrastructure.

Chinese-style Entry and Cultural Discount

If Hollywood’s rise is a global expansion of a cultural industrial system, then China’s film story is more like an “indigenous integration”.

Over the past two decades, China’s film market has undergone a complete process of introduction, learning, and localization. After China joined the WTO in 2001, import quotas for films gradually expanded, and Hollywood blockbusters became a key reference for the Chinese film industry. Meanwhile, the market grew rapidly: according to the National Film Administration, China’s annual box office rose from less than 1 billion RMB in 2002 to 51.8 billion RMB in 2025, with over 90,000 screens, making it one of the largest film markets in the world.

In this process, Hollywood and Hong Kong films served as the pioneers for China’s film industry. They contributed to content creation, technology, star-making, and IP development during the early stages of domestic filmmaking. Blockbusters like “Avatar,” “Transformers,” and “The Avengers” repeatedly broke box office records, showcasing film technology and storytelling appeal, inspiring Chinese filmmakers and shaping industry visions. The failure of co-productions like “The Great Wall” also made clear that cultural integration requires contextually appropriate approaches.

From this point, films like “Wolf Warrior 2,” “The Battle at Lake Changjin,” “The Wandering Earth,” and “Nezha” with Chinese elements became phenomenons, marking a significant leap in China’s film industry.

“The Wandering Earth 2” (2023)

As production capabilities mature, Chinese films are increasingly approaching Hollywood standards in visual effects, scale, and genre diversity. Meanwhile, the new generation of audiences has shifted their cultural psychology. Growing up during China’s rapid economic development, young viewers’ admiration for American culture has waned, and their acceptance and interest in domestic narratives have grown. Comedies, war films, mythologies, and realistic genres rooted in Chinese society now have a stable audience base. The new generation finds emotional resonance in Chinese-made films, and their consistent box office success fosters cultural confidence and awareness.

According to UNESCO’s “Global Film Market Report,” only a few countries have long maintained more than 50% of their box office revenue from domestic films—mainly China, India, Japan, and South Korea. For example, Indian films dominate over 80% of their local market, Japanese films account for about 60%, and Korean films often hold around 50%.

These markets share a well-developed local cultural industry system and strong audience identification with domestic products. Compared to Japan and South Korea, China’s international expansion still faces a long road.

Canadian scholar Colin Hoskins, in “Global Television and Film,” notes that cultural products often experience “cultural discount” when crossing borders due to differences in language, history, and values, affecting their commercial performance.

Looking at successful Japanese and Korean cultural exports, two different paths emerge to reduce this cultural discount.

Japanese cultural products rely heavily on animation as a core medium. According to the Japan Animation Association, about half of the industry’s revenue comes from overseas. In the streaming era, the U.S. is a major overseas market, with about 25% of Americans having watched Japanese animation. Classics like “Pokémon” and “Doraemon” remain popular, and recent hits like “Demon Slayer” and “Attack on Titan” have gained high attention in the West.

Animation’s role in Japan’s global cultural spread is due to its high level of abstraction compared to live-action works. Exaggerated character designs, symbolic emotions, and highly stylized visuals reduce cultural barriers, making it easier for international audiences to understand and accept.

Korea’s approach relies more on state strategy and global platforms.

After the 1990s Asian financial crisis, the Korean government launched the “Cultural Industry Nation” strategy, viewing film, music, and gaming as key growth engines. Korean media industries strengthened in capital operation, genre innovation, and global distribution.

Netflix’s rise has provided a new channel for Korean content, offering a platform to reach over 190 countries. This bypasses traditional slow and limited distribution methods. Its algorithm-driven recommendations have helped shows like “Squid Game” and “The Glory” break out of niche audiences and become global entertainment phenomena.

“The Glory” (2022)

In Korea’s cultural globalization, Netflix has combined the capabilities once exclusive to Hollywood—simultaneous global release, algorithmic recommendation, and capital investment—significantly reducing cultural discount and enabling Korean Wave to enter the true global cultural market.

In contrast, China’s film internationalization remains exploratory. Recent works like “Nezha” and “The Wandering Earth” have gained overseas attention, but overall box office is still concentrated in Chinese-speaking markets. Despite their cross-cultural potential—animation and sci-fi are inherently cross-cultural—these films often embed deep cultural roots in Chinese history and values, creating understanding barriers for foreign audiences.

Distribution systems further amplify this cultural discount. Unlike Hollywood’s stable global distribution network, Chinese films often rely on ad hoc collaborations for overseas release. Most films depend on film festivals, art cinemas, or regional agents, lacking long-term, stable channels. This “case-by-case” approach hampers efficient industry resource integration and limits cultural dissemination.

This structural gap means China has yet to establish a robust international distribution system, while maintaining a strong domestic audience base. The current global market presents a unique situation: a powerful domestic market that is not afraid of foreign input and does not seek maximum commonality.

On the Oscar stage across the ocean, winning films and trending topics still revolve around American history, immigration stories, and political issues. These themes no longer resonate with many Chinese viewers.

While domestic films flourish at home, the Oscars shine afar, and the era of globalization seems to be receding. The film world carries its own cultural and market boundaries, each heading their own way.