For a lot of years, Hollywood has been a dominating force globally, creating waves through box office dominance in different countries.

The situation between China and the US could drastically change that. There is an existing film pact that the World Trade Organization (WTO) brokered between the U.S. and Beijing. It was signed way back in 2012, according to Bloomberg, and it's due to be renegotiated. China is the second-biggest film market in the world, which is how big the understanding between China and the U.S. film markets are.

The situation being what it is, however, Hollywood seems to be in danger of being one of the markets set to suffer. Tariffs have wide-reaching consequences; with Hollywood being a contributor to the U.S. economy, it could also feel the effects of the trade war the U.S. has imposed upon China.

Chance For Other Markets To Step Up

While Hollywood suffers, there is also the danger that other markets can step in.

India, for instance, has Bollywood, Economic Times India reports. Bollywood has been behind Hollywood all the way in films shown in China; the Chinese allow 34 Hollywood films to be shown annually in cinemas across the country. With the trade tariffs in place, the amount could dwindle, and other markets have to step in to fill the void. Bollywood could very well be that market.

With its big draw in China, it could step in ably. Aamir Khan's "Dangal," for example, has raked in $196 million at the Chinese box office. While it's not as big as a normal Hollywood movie, it still is something; in the past three years, Indian films have created a profit of 2.79 billion yuan in the Chinese film market.

The Fallout Of The 'War'

The current conditions being what they are, there is a danger that the renegotiation could suffer. Last year, the existing understanding between Hollywood and the Chinese box office has expired; under existing conditions, this understanding is in clear danger of not being extended, says Hollywood Reporter.

Hollywood has only the policies set by the government to blame. With the Chinese economy on the rise, Hollywood is in danger of finding itself on the outside looking in.