One of China's top officials met with Disney CEO Bob Iger in Beijing on Friday, state media reported, as the "House of Mouse" seeks to strengthen its foothold in the world's second-largest economy amid fraught US-China tensions.

Vice Premier Ding Xuexiang encouraged Iger to invest further in China, a notable shift from Beijing's threat last April that it would further restrict imports of Hollywood films in response to U.S. tariffs.

China's US$19 trillion economy presents a complicated business proposition for US film studios: the country's young, affluent urban middle class offers a lucrative audience for theme parks, but Beijing tightly controls the number of foreign films allowed into the country each year - potentially constraining interest in the franchises that drive the punters to the parks.

Iger built out Disney's media empire through high-profile acquisitions of Pixar, Marvel and the Star Wars franchise, and oversaw the opening of Shanghai Disneyland.

For three decades, Beijing has capped Hollywood imports at just 10 films a year, and it has made significant headway in steering Chinese audiences toward domestically produced movies in the world's second-largest film market.

Chinese moviegoers propelled "Ne Zha 2" past Pixar's "Inside Out 2" to make it the highest‑grossing animated film of all time last year.

Hollywood films account for only 5 percent of overall box office receipts in China's markets, analysts estimate.

Still, Disney and Universal Studios have both opened theme parks in Shanghai and Beijing, respectively, with Iger's visit likely to again fuel speculation that the entertainment giant has plans to open a second amusement park in the country.

"Disney is full of confidence in China's development and will continue to expand investment in China," Iger was quoted as saying.

REUTERS

Disney CEO meets top Chinese official as 'House of Mouse' navigates US‑China tensions