This undated photo shows a poster for The Eight Hundred at a cinema in China. (HUANG JINKUN / FOR CHINA DAILY)

Box office collections by foreign films in China more than halved in 2020, posing a tough challenge for Hollywood in one of the few major markets to be recovering from the pandemic.

In the year China took the crown from the US as the world’s No. 1 movie market with a revenue of 20.4 billion yuan (US$3.2 billion), overseas films accounted for only 16 percent of the ticket receipts. That compares with 36 percent in 2019, according to data from local ticketing platform Maoyan Entertainment.

Local movies accounted for 84 percent of China’s box office revenue in 2020, bulking up from 64 percent in 2019. Chinese studios produced four of the 10 biggest titles, including The Eight Hundred, according to industry data tracker Box Office Mojo

After China contained the virus within months, movie theaters reopened as early as mid-July, offering a bevy of local fare including the world’s top-grossing movie last year, The Eight Hundred, a historical war drama. In contrast, the US and Europe are still struggling to contain the pandemic. Lockdowns are back in many countries as infections and deaths surge, keeping cinema halls shuttered and delaying Hollywood productions and releases.

“China is the fastest to walk out of the pandemic impact and Chinese people are very willing to go out and watch movies in cinemas,” said Wilson Chow, global technology, media and telecommunications industry leader at PwC China. “Hollywood released fewer blockbusters last year, so its level of appeal to Chinese viewers has become lower.”

ALSO READ: Holiday fuels China's box office revenue growth

The pandemic also “half-paralyzed Hollywood’s studios,” Chow said. Fewer big releases in China meant a smaller share in the their box office revenue. Films like Minions: The Rise of Gru and Black Widow, for instance, were pushed to this year.

Foreign films are also at a disadvantage in China as authorities keep a tight control over the number of imported movies. A World Trade Organization memorandum in 2012 expanded the annual target for foreign titles imported into China to 34 from 20. There are also blackout periods for overseas films during peak seasons.

Movie theaters in Asia are generally thriving, according to Imax Corp’s Chief Executive Officer Rich Gelfond. In Japan, a record number of people watched films in Imax cinemas over the weekend, while December ticket sales in China at the company’s big-screen theaters jumped 28 percent from a year earlier, Gelfond said on Bloomberg Television.

Local movies accounted for 84 percent of China’s box office revenue in 2020, bulking up from 64 percent in 2019. Chinese studios produced four of the 10 biggest titles, including The Eight Hundred, according to industry data tracker Box Office Mojo. On the other hand, several of Hollywood’s highly anticipated, big-budget films flopped in China.

READ MORE: China's film industry emerges from virus with successful plot

Walt Disney Co’s fantasy-action drama Mulan stirred up controversy for its portrayal of Chinese culture.

Monster Hunter,” directed by Paul W.S. Anderson and backed by Sony Corp, was pulled from some cinemas in China after some viewers criticized a scene for being racist. Its co-producer apologized and edited out the controversial line that, according to some viewers, was similar to a playground taunt against people of Asian descent for supposedly being dirty.

The recovery of the industry in China has also spurred a rally in some of the local film stocks. Wanda Film Holding Co has advanced 28 percent since July while Beijing Enlight Media Co and Huayi Brothers Media Corp gained 6 percent and 11 percent. Each of these three companies saw their shares plunge in the first six months of 2020.