The latest fallout from escalating tensions between the United States and China is hitting Hollywood as Beijing moves to reduce the number of American films allowed in its theaters — dealing another blow to an entertainment industry already reeling from years of disruption.

This week, the Chinese government announced plans to further restrict the number of U.S. movie imports, tightening control over what content gets screened in one of the world’s most lucrative film markets.

China has historically been critical to Hollywood’s bottom line, generating about $8 billion annually at the box office.