China is set to allow the release of more Hollywood films as part of a trade pact with the United States.

The South China Morning Post reports that a higher number of movies from the US will be permitted to be shown on the mainland as a sign from Beijing that it is taking steps to cut its trade surplus with the US. China is also expected to increase its imports of American soy, pork and beef as part of the agreement, government researcher Mei Xinyu told the newspaper.

Tension over trade between the countries has been heightened in recent months following the election of Donald Trump, who has been critical of US trade deals with China. Trump had threatened to impose punitive tariffs on Chinese imports in response. However, the president held “very frank” and “very positive” discussions with Chinese premier Xi Jinping at Mar-a-Lago last weekend, according to US secretary of state Rex Tillerson, easing fears of a trade war between the countries.

As part of a bilateral trade agreement signed in 2012, China has maintained a cap on the number of foreign films that can be shown each year, to ensure that Chinese-qualifying films account for 60% of box-office share. Last year, the annual quota of 34 films was relaxed to 38 in a bid to boost anaemic Chinese box-office returns. A renegotiation of the quota agreement between the two countries is due to be conducted this year.

News of an increase in Hollywood releases in China is likely to be received enthusiastically by a film industry that considers the Chinese market as crucial to its future prosperity. The country is currently the biggest single export market for US films, but limits to the number of releases in the country have prevented greater growth.