By: Moiz Farooq
Executive Editor Pakistan Economic Net and Daily Ittehad Media Group
During Spanish Prime Minister Pedro Sánchez’s visit to China on April 11, President Xi Jinping reaffirmed China’s commitment to building a more resilient and dynamic comprehensive strategic partnership with Spain. He emphasized that deeper collaboration between the two nations would not only benefit their peoples but also provide new impetus for China-EU relations and contribute to global peace, stability, and development.
Prime Minister Sánchez echoed these sentiments, noting that China remains a key partner of the European Union. He reiterated Spain’s support for the stable development of EU-China ties and expressed a strong interest in bolstering cooperation in trade, investment, technological innovation, and green energy.
A key outcome of the visit was the signing of a Memorandum of Understanding on Film Cooperation between the China Film Administration and Spain’s Institute of Cinematography and Audiovisual Arts. The agreement aims to deepen collaboration in the film industry, including joint participation in film festivals, co-productions, mutual film screenings, and professional exchanges. This move is expected to inject fresh momentum into cultural cooperation and further elevate the bilateral relationship.
As the world’s second-largest film market, China continues to attract international filmmakers and investors. However, recent developments have created turbulence. In response to arbitrary tariffs imposed by the United States, China’s National Film Administration announced a moderate reduction in the number of American films imported. The announcement had immediate consequences, with share prices of major studios such as Disney and Warner Bros. Discovery taking a hit.
This policy shift has unsettled U.S. filmmakers and producers, as film is a vital component of trade in services. The U.S. has long enjoyed a significant services trade surplus with China—its largest in the global market. From 2001 to 2023, U.S. service exports to China soared from $5.63 billion to $46.71 billion, while the annual services trade surplus grew more than 11-fold to $26.57 billion, peaking at $39.7 billion in 2019.
European leaders have also signaled growing frustration with U.S. trade policies. European Commission President Ursula von der Leyen warned that if Washington and Brussels fail to reach an agreement on tariffs, the EU could retaliate by targeting American tech giants—a critical source of the U.S. services trade surplus with Europe.
The U.S.’s reliance on its film and technology sectors as pillars of its global trade strategy is now under pressure. These industries have long been tools for promoting American influence abroad while generating substantial revenue. Yet, as China and the EU take a firmer stance in response to unilateral U.S. actions, Washington’s aggressive tariff strategy appears to be backfiring—threatening to erode the very industries it once relied on to shape the global order.
