This could be the first major deal Trump’s team negotiates with China

This could be the first major deal Trump’s team negotiates with China
This could be the first major deal Trump’s team negotiates with China

A film agreement between the U.S. and China expires today, paving the way for a new round of talks that could mark the first major deal between the two economic giants under the administration of U.S. President Donald Trump.

Under the agreement reached by former vice president Joe Biden and Chinese president Xi Jinping in 2012, the quota for U.S. films into China rose to 34 from the previous 20.

China's Communist Party-owned newspaper, the Global Times, said the world's second largest economy was likely to raise the quota, and cited experts predicting the addition of a dozen films. Foreign producers will also be getting closer to 40 percent of ticket sales revenues, comparable to what they get in other overseas markets, up from the 25 percent they are getting from China now, the paper added.

"There is a lot of interest on the Chinese side to potentially increase the number of Hollywood films that are represented in the market," Aynne Kokas, assistant professor of Media Studies at the University of Virginia. The quota was in fact exceeded by six last year, she added.

Trump's call with Xi last week when he softened his stance on Taiwan and agreed to honor the longstanding "one China" policy also bodes well.

"There is potential to find trade winds on both sides with the renegotiation of the treaty," Kokas said.

CNBC

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