According to a report by China Daily on March 19th…
China’s intellectual property (IP) market is entering a mature phase, with Chinese-themed IPs increasingly driving consumer spending both domestically and abroad. Once a niche phenomenon, these IPs are now recognized as powerful commercial engines.
Blockbuster animated films are leading the trend. Less than a month after the release of Ne Zha 2, sales of its merchandise surpassed the two-year record set by The Wandering Earth II, generating $1.5 billion in derivative product revenue. Similarly, The Legend of Hei 2 secured over 30 licensing collaborations, with products sold through chains like Miniso and collectible blind boxes from Pop Mart selling out in seconds.
Trendy toy IPs are also booming. Labubu and Twinkle Twinkle drove industry upgrades, with Pop Mart reporting 390 million yuan in sales for Twinkle Twinkle products in the first half of 2025. New brands like Letsvan saw rapid market traction; its IP Wakuku sold out within two hours at Miniso Land Beijing, later boosting the company’s share price by 140% following a strategic acquisition.
Analysts predict continued growth in 2026, with a surge in both the variety and volume of IP content. Market intelligence firm Xinsheng-Pro forecasts increased competition across multiple dimensions and growing involvement from external capital and international players.
Experts highlight a shift from “traffic-driven” to “value-driven” IP. Wang Peng, associate research fellow at the Beijing Academy of Social Sciences, said that offline IP experiences — such as cultural tourism, theme parks, and immersive retail — are becoming central to extending product lifecycles and creating premium consumer engagement.
China’s top IPs are also aiming for global influence. By leveraging mature supply chains for toys and 3D printing, alongside international distribution of films and games, Chinese IP is increasingly competing to establish cultural symbols worldwide, combining content and physical goods to build global market presence.