Netflix’s absence in China isn’t a fluke, it’s the result of years of failed negotiations, rigid censorship rules, and a government that simply wasn’t interested, according to Co-CEO Ted Sarandos. And now, he says, it’s one of the company’s biggest advantages.
At a time when every major Hollywood studio was chasing access to the Chinese market, Netflix tried too, and hit a wall. In a candid interview during the World Economy Summit in Washington this week, Sarandos described how the streaming giant tried and failed to secure approval in China, and why he no longer sees it as a missed opportunity.
Breaking Into China Was Once Essential
Fifteen years ago, the Chinese box office was booming, and for many entertainment executives, success in China felt like a non-negotiable goal.
“Everyone thought it was existential. You had to get to China,” Sarandos said during a conversation with Semafor. “For us, I put in a couple of years of trying to do it.”
Netflix struck a deal with a third-party company that could have allowed it to operate inside China, avoiding the country’s internet firewall. However, content approvals quickly became the main obstacle.
“Not a Single Episode” Passed the Censorship Board
In three years of effort, not one Netflix show cleared the Chinese censorship board. That failure effectively shut the door on any path forward.
“They had no interest in us being in China,” Sarandos said bluntly. “I watched everyone spend the next decade grinding out all their time to get into China and ultimately ended up in the same place I did, which was nowhere.”
No China, No Problem
While Netflix never entered the Chinese market, Sarandos now views that as a strategic advantage. The company doesn’t face Chinese censorship, internet restrictions, tariffs, or regulatory risks, exposures that have complicated things for other U.S. firms.
“We are one of the rare companies in the U.S. without exposure to China,” he said. “There is a big business in the rest of the world that is happy to host Netflix.”
He added a pointed aside referencing trade politics: “No censorship, no tariffs, no taxes,” he said with a grin.
Netflix’s Economic Footprint in the U.S.
Sarandos also spoke of Netflix’s impact on the U.S. economy, something he feels is all too often lost in policy debates and trade agreements.
“From about 2020 through 2024, Netflix contributed $125 billion to the U.S. economy, created 140,000 production jobs, and shot content in all 50 states,” he said.
He was frustrated that the entertainment business tends to get bypassed by traditional manufacturing, citing how Netflix’s $1 billion production facility in New Jersey did not generate the type of hype that factories do.
“In Mexico, when we opened a production facility, the president showed up,” Sarandos said. “If we were building a billion-dollar car factory here, someone would be there with a camera.”
Hollywood’s Silent “Ambassadors”
Sarandos also mentioned former President Donald Trump’s effort to install celebrity “ambassadors” like Mel Gibson and Jon Voight to support Hollywood jobs. That initiative, meant to bolster domestic production, has since faded without delivering results. The Los Angeles Times reported this week that the group has yet to make any announcements or engage with major stakeholders.
Sarandos, meanwhile, continues pushing forward, with or without China’s approval.
